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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 • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code ## Salesperson This topic has 4 expert replies and 3 member replies ### Top Member lheiannie07 Master | Next Rank: 500 Posts Joined 07 Sep 2017 Posted: 108 messages #### Salesperson 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:
How is the option C the answer to this question?
Can any experts explain the fastest way to answer this question?

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### GMAT/MBA Expert

Rich.C@EMPOWERgmat.com Elite Legendary Member
Joined
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GMAT Score:
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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 Matt@VeritasPrep GMAT Instructor Joined 12 Sep 2012 Posted: 2560 messages Followed by: 113 members Thanked: 581 times Target GMAT Score: V51 GMAT Score: 780 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 Matt@VeritasPrep GMAT Instructor Joined 12 Sep 2012 Posted: 2560 messages Followed by: 113 members Thanked: 581 times Target GMAT Score: V51 GMAT Score: 780 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
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### Top Member

lheiannie07 Master | Next Rank: 500 Posts
Joined
07 Sep 2017
Posted:
108 messages
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 ### Top Member lheiannie07 Master | Next Rank: 500 Posts Joined 07 Sep 2017 Posted: 108 messages 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! ### Top Member lheiannie07 Master | Next Rank: 500 Posts Joined 07 Sep 2017 Posted: 108 messages 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

Matt@VeritasPrep GMAT Instructor
Joined
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Posted:
2560 messages
Followed by:
113 members
Thanked:
581 times
Target GMAT Score:
V51
GMAT Score:
780
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!

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