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25 Feb 2014, 00:04
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The Official Guide For GMAT® Quantitative Review, 2ND Edition

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 Problem Solving Question: 114 Category: Algebra Applied problems; Simultaneous equations Page: 76 Difficulty: 600 GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition - Quantitative Questions Project Each week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution. We'll be glad if you participate in development of this project: 1. Please provide your solutions to the questions; 2. Please vote for the best solutions by pressing Kudos button; 3. Please vote for the questions themselves by pressing Kudos button; 4. Please share your views on difficulty level of the questions, so that we have most precise evaluation. Thank you! [Reveal] Spoiler: OA _________________ Math Expert Joined: 02 Sep 2009 Posts: 37654 Followers: 7409 Kudos [?]: 99758 [2] , given: 11047 Re: Salesperson A's compensation for any week is$360 plus 6 per [#permalink]

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25 Feb 2014, 00:05
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SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 A's compensation =$360 + 6 percent of the A's total sales above $1,000. B's compensation = 8 percent of B's total sales. Whose compensation is greater? Well it depends on the sales: If each has the sales of$1,000, then A's compensation is $360 and B's compensation is$80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of$100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's. Answer: C. _________________ Manager Status: Never Give up!!! Joined: 03 Aug 2012 Posts: 51 Location: India Concentration: Finance, General Management Followers: 1 Kudos [?]: 39 [0], given: 28 Re: Salesperson A's compensation for any week is$360 plus 6 per [#permalink]

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25 Feb 2014, 02:01
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Let A's total sales for the week be 'x'
Let B's total sales for the week be 'y'

Now A gets a fixed salary(salary irrespective of sales) + variable salary = 360 + 0.06*(x-1000)

B gets only a variable salary = 0.08*(y)

Now assuming A sells nothing. i.e 0 $Then A's weekly income will be 360$
Since income of both has to be same 0.08*y = 360
thus y = 4500 $Now A gets a fixed income irrespective of his sales. So A's total sales for the week = 0 and B's total sales for the week = 4500 Thus TOTAL weekly sales at which both get the same earnings = x+y = 4500$. Answer - Option (D)
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Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] ### Show Tags 25 Feb 2014, 04:55 Option C I solved taking answer. Took C first and solved to get$1200 for A and B.
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26 Feb 2014, 02:19
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Option C.
The equation is:360+6%(x-1000)=8% of x
Solving,
360=8% of x-6% of x +60
300=2% of x
x=15000
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Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] ### Show Tags 01 Mar 2014, 04:24 SOLUTION Salesperson A's compensation for any week is$360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation? (A)$21,000
(B) $18,000 (C)$15,000
(D) $4,500 (E)$ 4,000

A's compensation = $360 + 6 percent of the A's total sales above$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is$360 and B's compensation is $80, so for$1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is$360+0.06*99,000=$6,300 and B's compensation is$8,000, so for $100,000 A's compensation is less than that of B's. The question asks: for what amount would both salespeople earn the same compensation? Say that amount is$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of$15,000, then A's compensation is the same as that of B's.

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Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] ### Show Tags 01 Mar 2014, 04:33 Bunuel wrote: SOLUTION Salesperson A's compensation for any week is$360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation? (A)$21,000
(B) $18,000 (C)$15,000
(D) $4,500 (E)$ 4,000

A's compensation = $360 + 6 percent of the A's total sales above$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is$360 and B's compensation is $80, so for$1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is$360+0.06*99,000=$6,300 and B's compensation is$8,000, so for $100,000 A's compensation is less than that of B's. The question asks: for what amount would both salespeople earn the same compensation? Say that amount is$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of$15,000, then A's compensation is the same as that of B's.

I didnt get it.... Question says for what amount of TOTAL SALES...Total Sales = A's sale + B's sale ....so it has to be be A's sales = 0 and B's sales = 4500 and Option D.
If it is 15000 $= B's sale then the answer should be 30000$ as the total sales.

Thus If each has a sales of $15000 then the total sales will be$ 30000 Option C just cant be the right answer. unless u interpret - For what amount of total weekly sales would both salespeople earn the same compensation? - as sales of any one person!!! - which isnt the intended meaning conveyed by the english of the question.
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01 Mar 2014, 05:01
Manofsteel wrote:
I just checked up the Official review and it is C... i mean i really, honestly and humbly think that the GMAC either got the question wording wrong or the answer wrong.
So i still feel given the question wording D is the right answer. GMAC probably made a mistake with the question wording.(After all they are humans too)

Check again: D is wrong.
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01 Mar 2014, 07:20
Manofsteel wrote:
Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 A's compensation =$360 + 6 percent of the A's total sales above $1,000. B's compensation = 8 percent of B's total sales. Whose compensation is greater? Well it depends on the sales: If each has the sales of$1,000, then A's compensation is $360 and B's compensation is$80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of$100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's. Answer: C. I didnt get it.... Question says for what amount of TOTAL SALES...Total Sales = A's sale + B's sale ....so it has to be be A's sales = 0 and B's sales = 4500 and Option D. If it is 15000$ = B's sale then the answer should be 30000$as the total sales. Thus If each has a sales of$15000 then the total sales will be $30000 Option C just cant be the right answer. unless u interpret - For what amount of total weekly sales would both salespeople earn the same compensation? - as sales of any one person!!! - which isnt the intended meaning conveyed by the english of the question. The questions asks for what amount the two compensation plans would give the same compensation. Similar questions: health-insurance-plan-a-requires-the-insured-to-pay-1000-or-106447.html each-week-harry-is-paid-x-dollars-per-hour-for-the-first-131475.html _________________ Intern Joined: 30 Jan 2014 Posts: 17 Followers: 0 Kudos [?]: 1 [0], given: 15 Re: Salesperson A's compensation for any week is$360 plus 6 per [#permalink]

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10 Mar 2014, 08:18
Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 A's compensation =$360 + 6 percent of the A's total sales above $1,000. B's compensation = 8 percent of B's total sales. Whose compensation is greater? Well it depends on the sales: If each has the sales of$1,000, then A's compensation is $360 and B's compensation is$80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of$100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's. Answer: C. Why did you substract 1000 from x while computing A's compensation ? I understand the question as if A made a$2000 total sales, his compensation is 360+ 2000*0,06
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Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] ### Show Tags 10 Mar 2014, 08:26 1 This post received KUDOS Expert's post lool wrote: Bunuel wrote: SOLUTION Salesperson A's compensation for any week is$360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation? (A)$21,000
(B) $18,000 (C)$15,000
(D) $4,500 (E)$ 4,000

A's compensation = $360 + 6 percent of the A's total sales above$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is$360 and B's compensation is $80, so for$1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is$360+0.06*99,000=$6,300 and B's compensation is$8,000, so for $100,000 A's compensation is less than that of B's. The question asks: for what amount would both salespeople earn the same compensation? Say that amount is$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of$15,000, then A's compensation is the same as that of B's.

Why did you substract 1000 from x while computing A's compensation ? I understand the question as if A made a $2000 total sales, his compensation is 360+ 2000*0,06 No. The stem says that "A's compensation for any week is$360 plus 6 percent of the portion of A's total sales above $1,000 for that week." Thus if A's sales were$2,000 for a certain week, then the compensation would be $360 plus 6 percent of the portion of A's total sales above$1,000, so 6 percent of $2,000-$1,000=$1,000: 360 + 0.06*1,000. Hope it's clear. _________________ Intern Joined: 21 Jan 2014 Posts: 17 Location: Germany Concentration: Entrepreneurship, Strategy GMAT Date: 05-28-2014 GPA: 3.9 WE: Consulting (Entertainment and Sports) Followers: 0 Kudos [?]: 8 [0], given: 9 Re: Salesperson A's compensation for any week is$360 plus 6 per [#permalink]

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10 Mar 2014, 15:59
I can't believe, how long it took me to totally understand this damn formula
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26 Jul 2015, 06:11
Really? Which one is correct? total weekly sales or individual sales?
IMO if each has $15k of sales then the total weekly sales must be$30k

Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 A's compensation =$360 + 6 percent of the A's total sales above $1,000. B's compensation = 8 percent of B's total sales. Whose compensation is greater? Well it depends on the sales: If each has the sales of$1,000, then A's compensation is $360 and B's compensation is$80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of$100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's. Answer: C. Math Expert Joined: 02 Sep 2009 Posts: 37654 Followers: 7409 Kudos [?]: 99758 [0], given: 11047 Re: Salesperson A's compensation for any week is$360 plus 6 per [#permalink]

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26 Jul 2015, 11:31
evdo wrote:
Really? Which one is correct? total weekly sales or individual sales?
IMO if each has $15k of sales then the total weekly sales must be$30k

Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 A's compensation =$360 + 6 percent of the A's total sales above $1,000. B's compensation = 8 percent of B's total sales. Whose compensation is greater? Well it depends on the sales: If each has the sales of$1,000, then A's compensation is $360 and B's compensation is$80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of$100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's. Answer: C. The question asks about the total weekly sales of each salesperson. _________________ Math Forum Moderator Joined: 20 Mar 2014 Posts: 2652 Concentration: Finance, Strategy Schools: Kellogg '18 (M) GMAT 1: 750 Q49 V44 GPA: 3.7 WE: Engineering (Aerospace and Defense) Followers: 122 Kudos [?]: 1410 [0], given: 789 Re: Salesperson A's compensation for any week is$360 plus 6 per [#permalink]

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26 Jul 2015, 11:41
evdo wrote:
Really? Which one is correct? total weekly sales or individual sales?
IMO if each has $15k of sales then the total weekly sales must be$30k

Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 A's compensation =$360 + 6 percent of the A's total sales above $1,000. B's compensation = 8 percent of B's total sales. Whose compensation is greater? Well it depends on the sales: If each has the sales of$1,000, then A's compensation is $360 and B's compensation is$80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of$100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's. Answer: C. You are over analyzing the question stem. It asks us to calculate that 1 particular value of total weekly sales that will give us the same compensation for both A and B. "Total" here means total weekly sales for either one of them. _________________ Thursday with Ron updated list as of July 1st, 2015: http://gmatclub.com/forum/consolidated-thursday-with-ron-list-for-all-the-sections-201006.html#p1544515 Rules for Posting in Quant Forums: http://gmatclub.com/forum/rules-for-posting-please-read-this-before-posting-133935.html Writing Mathematical Formulae in your posts: http://gmatclub.com/forum/rules-for-posting-please-read-this-before-posting-133935.html#p1096628 GMATCLUB Math Book: http://gmatclub.com/forum/gmat-math-book-in-downloadable-pdf-format-130609.html Everything Related to Inequalities: http://gmatclub.com/forum/inequalities-made-easy-206653.html#p1582891 Inequalities tips: http://gmatclub.com/forum/inequalities-tips-and-hints-175001.html Debrief, 650 to 750: http://gmatclub.com/forum/650-to-750-a-10-month-journey-to-the-score-203190.html Intern Joined: 11 Nov 2014 Posts: 42 Concentration: Marketing, Finance WE: Programming (Computer Software) Followers: 0 Kudos [?]: 9 [0], given: 101 Salesperson A's compensation for any week is$360 plus 6 per [#permalink]

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08 May 2016, 06:32
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Bunuel wrote:
The Official Guide For GMAT® Quantitative Review, 2ND Edition

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000 (B)$18,000
(C) $15,000 (D)$ 4,500
(E) $4,000 Problem Solving Question: 114 Category: Algebra Applied problems; Simultaneous equations Page: 76 Difficulty: 600 GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition - Quantitative Questions Project Each week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution. We'll be glad if you participate in development of this project: 1. Please provide your solutions to the questions; 2. Please vote for the best solutions by pressing Kudos button; 3. Please vote for the questions themselves by pressing Kudos button; 4. Please share your views on difficulty level of the questions, so that we have most precise evaluation. Thank you! Hi Bunuel , Can you please specify ? why do we need to take both salesperson's sales equal ? (It is not given in the question that both sales are equal) we are asked for "what amount of total weekly sales would both salespeople earn the same compensation?" I think we need to calculate Sales of A + Sales of B = ? (at the same compensation earned ) After seeing your solution if x =$15000 (which is supposed to be 1 person's sales amount)
then Sales A + Sales B should be $30000, which is not even in the options... Can you please explain where am I wrong ? Salesperson A's compensation for any week is$360 plus 6 per   [#permalink] 08 May 2016, 06:32

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