As a salesperson, Phyllis can choose one of two methods of annual paym

Question

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of $10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

(A) $100,000
(B) $120,000
(C) $125,000
(D) $130,000
(E) $132,000

(A) $100,000
(B) $120,000
(C) $125,000
(D) $130,000
(E) $132,000

Bunuel · Answer

SOLUTION

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of $10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

(A) $100,000
(B) $120,000
(C) $125,000
(D) $130,000
(E) $132,000

(A) $100,000
(B) $120,000
(C) $125,000
(D) $130,000
(E) $132,000

35,000 = 10,000 + 0.2*x --> x = 125,000.

Answer: C.

PareshGmat · Answer

Answer = (C) $125,000

35000 = 10000 + 25000

We require to calculate sales which creates a commission of 25000 @ 20%

=  25000* \frac{100}{20}= 125000

nutshell · Answer

1st method of annual payment = 35,000 + no commission = 35,000
2nd method of annual payment = 10,000 + 1/5TS, where TS is Total Sales

Since the annual pay is the same, as per the question, we can equate the 2 equations:
35,000 = 10,000 + 1/5 TS
1/5 TS = 25,000
TS = 125,000

Ans is (C)

dbiersdo · Answer

Option #1:

Annual Salary (A) = $35,000

Option #2:

Annual Salary (A) = $10,000 + .2 * Total Sales (S)

Solution:

Step 1 --> $35,000 = $10,000 + (1/5)S
Step 2 --> $25,000 = (1/5)S
Step 3 --> $25,000(5/1) = S
Step 4 --> $125,000 = S

Answer is (C)

DJ1986 · Answer

Took me 45 seconds total.

35=10+(1/5)X
25*5 = 125

EMPOWERgmatRichC · Answer

Hi All,

This question can be solved by TESTing THE ANSWERS.

From the information in the prompt, we're looking for a sales total that, when we take 20% of it, gives us $25,000. While this can be solved algebraically, we do have 5 answer choices to use as reference.

Let's TEST Answer B...

If Sales = $120,000
20% of $120,000 = (1/5)(120,000) = 24,000
This is remarkably close, but it's just a little TOO SMALL...

Let's TEST Answer C...

If Sales = $125,000
20% of $125,000 = (1/5)(125,000) = 25,000
This is an exact MATCH for what we were looking for, so this MUST be the answer.

Final Answer:  C

GMAT assassins aren't born, they're made,
Rich

kamranko · Answer

The Official Guide For GMAT® Quantitative Review, 2ND Edition

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of $10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

(A) $100,000
(B) $120,000
(C) $125,000
(D) $130,000
(E) $132,000

(A) $100,000
(B) $120,000
(C) $125,000
(D) $130,000
(E) $132,000

35000-10000=25000

25000=20% * x

x=25000 / 20% = 125000

ScottTargetTestPrep · Answer

We can let total annual sales = x and create the following equation:

35,000 = 10,000 + 0.2x

25,000 = 0.2x

125,000 = x

Answer: C

CyberStein · Answer

Let X = Annual Sales

1. $10,000 + (.2 * X) = $35,000
2. .2x = $25,000
3. x = $125,000

Answer (C)

BrentGMATPrepNow · Answer

For the first payment method, she receives  $35,000

Payment = annual salary of $10,000 plus a 20 percent commission on her total annual sales  
Let x = Phyllis' annual sales
So: her payment = 10,000 + (20% of x)
Simplify:  payment = 10,000 + 0.2x

What must her total annual sales be to give her the same annual pay with either method?  
If the two amounts are EQUAL, we can write:  10,000 + 0.2x  =  35,000 
Subtract 10,000 from both sides to get: 0.2x = 25,000 
Solve: x = 25,000/0.2 = = 250,000/2 = 125,000

Answer: C

Cheers,
Brent

Kinshook · Answer

Given :
As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of $10,000 plus a 20 percent commission on her total annual sales.

Asked: What must her total annual sales be to give her the same annual pay with either method?

Let the annual sales required to give her the same annual pay with either method be x 
35000 = 10000 + .2 x 
x = 25000/.2 = $125,000

IMO C

bumpbot · Answer

Automated notice from GMAT Club BumpBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

As a salesperson, Phyllis can choose one of two methods of annual paym

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

As a salesperson, Phyllis can choose one of two methods of annual paym

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards