• Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT

Salesperson

This topic has 4 expert replies and 3 member replies

Salesperson

Post Thu Sep 07, 2017 5:07 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

    (A) $21,000
    (B) $18,000
    (C) $15,000
    (D) $ 4,500
    (E) $ 4,000

    Quote:
    Answer : C
    How is the option C the answer to this question?
    Can any experts explain the fastest way to answer this question?

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
    Post Thu Sep 07, 2017 8:33 pm
    Hi Iheiannie07,

    We're told the pay rates for two salespeople:
    1) Salesperson A = $360 + 6% of sales above $1,000
    2) Salesperson B = 8% of sales

    We're asked for the total sales that would lead to the SAME pay for each salesperson. This question can be solved algebraically or by TESTing THE ANSWERS. Here's how you can answer the question with the second method:

    Let's TEST Answer B: $18,000
    Person A = $360 + 6% of $17,000 = $360 + $1020 = $1380
    Person B = 8% of $18,000 = $1440
    These two values are close but not the same. Since Person B receives a higher percentage of every dollar in sales, a larger sales total would create a larger difference between what the two salespeople are paid. Thus, we need an answer that is SMALLER that $18,000 (but not that much smaller, relatively speaking).

    Let's TEST Answer C: $15,000
    Person A = $360 + 6% of $14,000 = $360 + $840 = $1200
    Person B = 8% of $15,000 = $1200
    These two values are EQUAL, so this MUST be the answer.

    Final Answer: C

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

    _________________
    Contact Rich at Rich.C@empowergmat.com

    Thanked by: lheiannie07

    GMAT/MBA Expert

    Post Wed Sep 20, 2017 4:11 pm
    Put the equation in words, then translate those words to math:

    A makes $360 + 6% of (Total - $1000)

    B makes 8% of Total

    We want these to be equal, so:

    $360 + 6% of (Total - $1000) = 8% of Total

    Now let's assign a variable to the total (how about t?) and write the percentages as decimals:

    360 + .06*(t - 1000) = .08t

    ... and from there it's just boring arithmetic!

    Thanked by: lheiannie07
    Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

    GMAT/MBA Expert

    Post Wed Sep 20, 2017 4:16 pm
    We could also try to speed up the problem by thinking of the differences in the incomes.

    A has a $360 head start. After each salesperson sells $1000 of product, B has $80 and A has the same as (s)he started with, $360, since A gets no commission on the first $1000.

    From here, B needs to make up $360 - $80, or $280, to be even with A.

    B gets 2% more commission, so if each salesperson sells $x worth of product, 2% of $x must = $280, the difference to be made up.

    .02x = 280 gives us x = $14,000, so after *another* $14,000 in sales the reps will be even.

    We started with $1000, of course, leaving us a sales total of $1000 + $14,000, or $15,000.

    Thanked by: lheiannie07
    Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!
    Post Thu Oct 12, 2017 1:36 pm
    Rich.C@EMPOWERgmat.com wrote:
    Hi Iheiannie07,

    We're told the pay rates for two salespeople:
    1) Salesperson A = $360 + 6% of sales above $1,000
    2) Salesperson B = 8% of sales

    We're asked for the total sales that would lead to the SAME pay for each salesperson. This question can be solved algebraically or by TESTing THE ANSWERS. Here's how you can answer the question with the second method:

    Let's TEST Answer B: $18,000
    Person A = $360 + 6% of $17,000 = $360 + $1020 = $1380
    Person B = 8% of $18,000 = $1440
    These two values are close but not the same. Since Person B receives a higher percentage of every dollar in sales, a larger sales total would create a larger difference between what the two salespeople are paid. Thus, we need an answer that is SMALLER that $18,000 (but not that much smaller, relatively speaking).

    Let's TEST Answer C: $15,000
    Person A = $360 + 6% of $14,000 = $360 + $840 = $1200
    Person B = 8% of $15,000 = $1200
    These two values are EQUAL, so this MUST be the answer.

    Final Answer: C

    GMAT assassins aren't born, they're made,
    Rich
    Thank you, this is a great help Smile

    Post Thu Oct 12, 2017 1:37 pm
    Matt@VeritasPrep wrote:
    Put the equation in words, then translate those words to math:

    A makes $360 + 6% of (Total - $1000)

    B makes 8% of Total

    We want these to be equal, so:

    $360 + 6% of (Total - $1000) = 8% of Total

    Now let's assign a variable to the total (how about t?) and write the percentages as decimals:

    360 + .06*(t - 1000) = .08t

    ... and from there it's just boring arithmetic!
    Thanks a lot!

    Post Thu Oct 12, 2017 1:41 pm
    Matt@VeritasPrep wrote:
    We could also try to speed up the problem by thinking of the differences in the incomes.

    A has a $360 head start. After each salesperson sells $1000 of product, B has $80 and A has the same as (s)he started with, $360, since A gets no commission on the first $1000.

    From here, B needs to make up $360 - $80, or $280, to be even with A.

    B gets 2% more commission, so if each salesperson sells $x worth of product, 2% of $x must = $280, the difference to be made up.

    .02x = 280 gives us x = $14,000, so after *another* $14,000 in sales the reps will be even.

    We started with $1000, of course, leaving us a sales total of $1000 + $14,000, or $15,000.
    Thanks for helping!

    GMAT/MBA Expert

    Post Fri Oct 13, 2017 11:16 am
    lheiannie07 wrote:
    Matt@VeritasPrep wrote:
    We could also try to speed up the problem by thinking of the differences in the incomes.

    A has a $360 head start. After each salesperson sells $1000 of product, B has $80 and A has the same as (s)he started with, $360, since A gets no commission on the first $1000.

    From here, B needs to make up $360 - $80, or $280, to be even with A.

    B gets 2% more commission, so if each salesperson sells $x worth of product, 2% of $x must = $280, the difference to be made up.

    .02x = 280 gives us x = $14,000, so after *another* $14,000 in sales the reps will be even.

    We started with $1000, of course, leaving us a sales total of $1000 + $14,000, or $15,000.
    Thanks for helping!
    My pleasure! Thanks for thanking! Smile

    Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

    Best Conversation Starters

    1 Vincen 152 topics
    2 lheiannie07 61 topics
    3 Roland2rule 49 topics
    4 ardz24 40 topics
    5 LUANDATO 32 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    141 posts
    2 image description EconomistGMATTutor

    The Economist GMAT Tutor

    107 posts
    3 image description GMATGuruNY

    The Princeton Review Teacher

    106 posts
    4 image description Rich.C@EMPOWERgma...

    EMPOWERgmat

    104 posts
    5 image description Matt@VeritasPrep

    Veritas Prep

    76 posts
    See More Top Beat The GMAT Experts