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13 Dec 2015, 04:53
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
81% (01:56) correct
19%
(02:26)
wrong
based on 243
sessions
History
Date
Time
Result
Not Attempted Yet
One used-car salesperson receives a commission of $ 200 plus 4 percent of $ 1,000 less than the car’s final sale price. Another car salesperson earns a straight commission of 6 percent of the car’s final sale price. What is the final sale price of a car if both salespeople would earn the same commission for selling it?
A. $ 5,000
B. $ 6,000
C. $ 8,000
D. $ 10,000
E. $ 12,000
A. $ 5,000
B. $ 6,000
C. $ 8,000
D. $ 10,000
E. $ 12,000
13 Dec 2015, 13:01
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Bookmarks
let s1 and s2 be the commission earned by the two salesperson
as per the question,
s1=200+0.04(x-1000) (where x is the sp of the car)
s2=0.06x
also
s1=s2
or,
200+0.04(x-1000)=0.06x
200+0.04x-40=0.06x
0.02x=160
x=8000
as per the question,
s1=200+0.04(x-1000) (where x is the sp of the car)
s2=0.06x
also
s1=s2
or,
200+0.04(x-1000)=0.06x
200+0.04x-40=0.06x
0.02x=160
x=8000
15 Dec 2015, 17:14
Kudos
Bookmarks
Hi All,
This question can be solved by TESTing THE ANSWERS.
We're given the pay rate of two different salespeople who sell cars:
1) A commission of $ 200 plus 4 percent of $ 1,000 less than the car’s final sale price.
2) A straight commission of 6 percent of the car’s final sale price.
We're asked for the final sale price of a car if both salespeople would earn the SAME commission for selling it?
Let's TEST Answer B: $6,000
1st salesperson = $200 + .04(6,000 - 1,000) = $200 + .04(5,000) = $200 + $200 = $400
2nd salesperson = .06(6,000) = $360
These totals are NOT the same, so we can eliminate B. Looking at the two pay 'formulas', we can see that the 2nd salesperson will make more money than the 1st when the price of the car increases to a significant level, so we need a price that is HIGHER than $6,000. Since the difference in pay is relatively small in Answer B, we're likely looking for a number that is fairly close to $6,000 though...
Let's TEST Answer C: $8,000
1st salesperson = $200 + .04(8,000 - 1,000) = $200 + .04(7,000) = $200 + $280 = $480
2nd salesperson = .06(8,000) = $480
These totals are the SAME, so this must be the answer.
Final Answer:
GMAT assassins aren't born, they're made,
Rich
This question can be solved by TESTing THE ANSWERS.
We're given the pay rate of two different salespeople who sell cars:
1) A commission of $ 200 plus 4 percent of $ 1,000 less than the car’s final sale price.
2) A straight commission of 6 percent of the car’s final sale price.
We're asked for the final sale price of a car if both salespeople would earn the SAME commission for selling it?
Let's TEST Answer B: $6,000
1st salesperson = $200 + .04(6,000 - 1,000) = $200 + .04(5,000) = $200 + $200 = $400
2nd salesperson = .06(6,000) = $360
These totals are NOT the same, so we can eliminate B. Looking at the two pay 'formulas', we can see that the 2nd salesperson will make more money than the 1st when the price of the car increases to a significant level, so we need a price that is HIGHER than $6,000. Since the difference in pay is relatively small in Answer B, we're likely looking for a number that is fairly close to $6,000 though...
Let's TEST Answer C: $8,000
1st salesperson = $200 + .04(8,000 - 1,000) = $200 + .04(7,000) = $200 + $280 = $480
2nd salesperson = .06(8,000) = $480
These totals are the SAME, so this must be the answer.
Final Answer:
GMAT assassins aren't born, they're made,
Rich
