• Magoosh
Study with Magoosh GMAT prep

Available with Beat the GMAT members only code

• 1 Hour Free
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• Get 300+ Practice Questions

Available with Beat the GMAT members only code

• 5-Day Free Trial
5-day free, full-access trial TTP Quant

Available with Beat the GMAT members only code

• Free Trial & Practice Exam
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• 5 Day FREE Trial
Study Smarter, Not Harder

Available with Beat the GMAT members only code

• Free Veritas GMAT Class
Experience Lesson 1 Live Free

Available with Beat the GMAT members only code

• Award-winning private GMAT tutoring
Register now and save up to $200 Available with Beat the GMAT members only code • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code ## A salesman is paid a fixed amount - Data sufficiency This topic has 1 expert reply and 1 member reply sgnikc45 Junior | Next Rank: 30 Posts Joined 10 Jan 2014 Posted: 15 messages #### A salesman is paid a fixed amount - Data sufficiency Sat Feb 15, 2014 1:06 am Elapsed Time: 00:00 • Lap #[LAPCOUNT] ([LAPTIME]) I have a doubt regarding the following question. My dollar sign on my phone is not working so bare with me. Quote: Each week a certain salesman is paid a fixed amount equal to dollar 300, plus a commission equal to 5 percent of the amount of his sales that week over dollar 1000. What was the total amount the salesman was paid last week? 1. The total amount the salesman was paid last week is equal to 10 percent of the amount of his sales last week. 2. The salesman's sales last week totaled dollar 5,000. Let's take statement 1. We don't know whether the salesman made a sale above 1000 in the last week. That means the salesman was either paid dollar 300 or dollar 300 + commission. Since we have two possibilities here, statement 1 is insufficient. Let's take statement 2. We know that the salesman made a sale above 1000. Therefore, there is only one possible answer using this statement. SUFFICIENT. But the right answer is D. Can someone help me in understanding why my logic for eliminating statement 1 incorrect? I don't see any part of the question mentioning that the salesman made a sale above 1000. Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums! ### GMAT/MBA Expert GMATGuruNY GMAT Instructor Joined 25 May 2010 Posted: 13379 messages Followed by: 1781 members Thanked: 12902 times GMAT Score: 790 Sat Feb 15, 2014 4:27 am sgnikc45 wrote: I have a doubt regarding the following question. My dollar sign on my phone is not working so bare with me. Quote: Each week a certain salesman is paid a fixed amount equal to dollar 300, plus a commission equal to 5 percent of the amount of his sales that week over dollar 1000. What was the total amount the salesman was paid last week? 1. The total amount the salesman was paid last week is equal to 10 percent of the amount of his sales last week. 2. The salesman's sales last week totaled dollar 5,000. Let's take statement 1. We don't know whether the salesman made a sale above 1000 in the last week. That means the salesman was either paid dollar 300 or dollar 300 + commission. Since we have two possibilities here, statement 1 is insufficient. But the right answer is D. Can someone help me in understanding why my logic for eliminating statement 1 incorrect? I don't see any part of the question mentioning that the salesman made a sale above 1000. The salesman makes a base salary of$300.
Statement 1 indicates that his total earnings -- including his base salary -- are equal to 10% of his total sales.
Since 300 is 10% of 3000, his total sales cannot be less than $3000. One way to evaluate Statement 1 is to test whether the value given in Statement 2 --$5000 in sales -- is the ONLY value that will also satisfy Statement 1.

Statement 1: The total amount the salesman was paid last week is equal to 10 percent of the amount of his sales last week.
Case 1: Let his total sales = 5000, as indicated in statement 2.
Since he earns a 5% commission on all but the first $1000, his commission = 5% of$4000 = $200. Total earnings = base salary + commission = 300+200 = 500. Here, his total earnings (500) are equal to 10% of his total sales (5000). Case 2: Let his total sales = 4000. Since he earns a 5% commission on all but the first$1000, his commission = 5% of $3000 =$150.
Total earnings = base salary + commission = 300+150 = 450.
Here, his total earnings (450) are NOT equal to 10% of his total sales (4000).

Implication:
For his total earnings to be 10% of his total sales, his total sales must be 5000, as indicated in statement 2.
Thus, his total earnings = 500.
SUFFICIENT.

_________________
Mitch Hunt
GMAT Private Tutor
GMATGuruNY@gmail.com
If you find one of my posts helpful, please take a moment to click on the "Thank" icon.
Available for tutoring in NYC and long-distance.

Thanked by: sgnikc45
Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.

### GMAT/MBA Expert

Rich.C@EMPOWERgmat.com Elite Legendary Member
Joined
23 Jun 2013
Posted:
8718 messages
Followed by:
461 members
Thanked:
2747 times
GMAT Score:
800
Sat Feb 15, 2014 3:57 pm
Hi sgnikc45,

The information in the prompt provides enough information for us to create an equation for the salesman's pay: $300 + a 5% commission on any sales above$1000

300 + .05(X - 1000)

**It's important to note that if he sells less than $1000, there is no "penalty" (meaning that he won't lose money if he sells just$500).

The question asks for the amount the salesman was paid last week.

Fact 1: The salesman's pay last week = 10% of the total sales last week.

With this information, we can create a new equation…

.1X = 300 + .05(X - 1000)

This equation has just one variable, so we CAN solve it and there will be just one answer.
Fact 1 is SUFFICIENT

Fact 2: Total sales last week = \$5,000

We can plug this info into the original equation and answer the question.
Fact 2 is SUFFICIENT

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

_________________
Contact Rich at Rich.C@empowergmat.com

Thanked by: Newaz111

### Best Conversation Starters

1 Vincen 132 topics
2 lheiannie07 65 topics
3 LUANDATO 54 topics
4 Roland2rule 43 topics
5 ardz24 40 topics
See More Top Beat The GMAT Members...

### Most Active Experts

1 Brent@GMATPrepNow

GMAT Prep Now Teacher

133 posts
2 GMATGuruNY

The Princeton Review Teacher

114 posts
3 EconomistGMATTutor

The Economist GMAT Tutor

113 posts
4 Rich.C@EMPOWERgma...

EMPOWERgmat

109 posts
5 DavidG@VeritasPrep

Veritas Prep

72 posts
See More Top Beat The GMAT Experts