Sues monthly earnings consist of a monthly salary and a 4 percent com

abhinav0270

Please read question stemcarefully

monthly earnings consist of a monthly salary and a 4 percent commission

then question stem further says

Sue’s monthly salary was the same in July as in August

i.e. Fixed salary is same for the two months however Earning may differ due to different sale and thus different commission earned.


So the solution is as mentioned below:

Question: Sales of July - Sales of August = ?

Statement 1: Sue’s monthly earnings were $3,620 in July and $3,580 in August

Case 1: Assuming that the sale made in both July and august was > $2000

Earning = Salary + 4-percent-of- Sales

i.e. \(Earning_{July} - Earning_{August} = (Salary + (4/100)* Sales_{July}) - (Salary + (4/100)* Sales_{August})\)

i.e. \(Earning_{July} - Earning_{August} = (4/100)* Sales_{July} - (4/100)* Sales_{August}\)

\(3620 - 3580 = (4/100)* [Sales_{July} - Sales_{August}]\)

\(40 = (1/25)* [Sales_{July} - Sales_{August}]\)

\(1000 = [Sales_{July} - Sales_{August}]\)

Case 2: But 3580 could be the salary itself assuming that there was no sales made in August above $2000

NOT SUFFICIENT

STatement 2: Sue’s monthly salary was $3,500 in July and in August

NOT SUFFICIENT


Combining the statements

Now we know that salary was 3500 i.e. Earning 3580 in August definitely included sales above $2000 hence Case 2 of statement 1 applies

SUFFICIENT

Answer: Option C