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# Some real-estate offices pay their agents on a system

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Joined: 02 Mar 2017
Posts: 71
GMAT 1: 700 Q51 V34
Some real-estate offices pay their agents on a system  [#permalink]

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20 Jun 2017, 01:44
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Difficulty:

25% (medium)

Question Stats:

78% (02:06) correct 22% (02:26) wrong based on 170 sessions

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Some real-estate offices pay their agents on a system under which the agent's commission increases when the number of homes sold per month reaches a certain quota. In the Smithfield office, which started using this quota/commission system in 1992, agents have sold an average of 22 percent more homes per month since 1992 than have the agents in the Dunholme office, which uses a more traditional commission system.

If, based on the facts above, it is argued that the quota/commission system is the reason for the Smithfield office's increased sales, which of the following, if true, would most weaken that argument?

A) The Jonesboro office, which instituted the quota/commission system in 1992, has seen increases in sales since 1992 similar to those seen in the Smithfield office.

B) Under the quota/commission system, administrative costs (closing costs and costs of paperwork) of a home sale make up an increased percentage of the total costs of the sale.

C) Because the quota/commission system changes the way agents interact with customers, convincing agents to accept the quota system is extremely time-consuming.

D) Since 1992, the town of Smithfield, where the Smithfield office is located, has seen a large increase in the number of new homes built.

E) In the Smithfield office, commissions paid to agents average 10 percent more than commissions paid to agents in the Dunholme office.
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Re: Some real-estate offices pay their agents on a system  [#permalink]

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20 Jun 2017, 13:36
The argument talks about an alternate quota/commission system, which is being followed in the Smithfield office.
This has resulted in an increase to the sales in the homes(an average of 22% more homes/month), when compared
to the traditional commission system which is still being followed in the Dunholme office.

Since we need to weaken this argument, we need to find an alternative explanation as to why more homes are being
sold in Smithfield. "Since 1992, the town of Smithfield, where the Smithfield office is located, has seen a large increase
in the number of new homes built"(Option D)
provides us the alternate explanation, and is hence our correct answer.
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Re: Some real-estate offices pay their agents on a system  [#permalink]

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21 Jun 2017, 23:58
The argument gives credit to quota/commission system for the increase of sales of homes by agents .And it also says that agents in Smithtown have sold more percentage of houses than agents in Dunholme office.

Option D gives us a different reason for the increase in the sales of home as there were more houses available for sale.
New houses were constructed in smithtown so they would be more buyers .
Hope it helps
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Re: Some real-estate offices pay their agents on a system  [#permalink]

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20 Feb 2019, 10:04
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Some real-estate offices pay their agents on a system   [#permalink] 20 Feb 2019, 10:04
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