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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## A certain salesman's yearly income is determined by a base tagged by: swerve ##### This topic has 1 expert reply and 0 member replies ### Top Member ## A certain salesman's yearly income is determined by a base ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Was the salesman's commission larger than his base salary last year? 1) If the amount of the commission had been 30 percent higher, the salesman's total income (salary plus commission) would have been 10 percent higher last year. 2) The absolute difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year. The OA is A. Source: Manhattan Prep ### GMAT/MBA Expert GMAT Instructor Joined 22 Aug 2016 Posted: 1952 messages Followed by: 30 members Upvotes: 470 swerve wrote: A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Was the salesman's commission larger than his base salary last year? 1) If the amount of the commission had been 30 percent higher, the salesman's total income (salary plus commission) would have been 10 percent higher last year. 2) The absolute difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year. The OA is A. Source: Manhattan Prep Given: Income = Base salary + Commision Question: Was the salesman's commission larger than his base salary last year? Let's take each statement one by one. 1) If the amount of the commission had been 30 percent higher, the salesman's total income (salary plus commission) would have been 10 percent higher last year. Approach 1: We see that despite the commission increasing by 30% (> 10%), the increase in income is proportionally lower, i.e., 10% (< 30%); it implies that base salary is larger than the commission. The answer is No. Sufficient. Approach 2: Say, Income = I, Base salary = B, and Commission = C Thus, I = B + C ---(1) We have to determine whether C > B. Given, "If the amount of the commission had been 30 percent higher, the salesman's total income (salary plus commission) would have been 10 percent higher last year," we have 1.1*I = B + 1.3*C ---(2) Solving (1) and (2), we get B = 2C => B > C. The answer is No. Sufficient. 2) The absolute difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year. |B - C| = B/2 Case 1: B - C = B/2 => B = 2C => B > C. The answer is No. Case 2: -B + C = B/2 => B = 2C/3 => B < C. The answer is Yes. No unique answer. Insufficient. The correct answer: A Hope this helps! -Jay _________________ Manhattan Review GMAT Prep Locations: Manhattan Review India | Manhattan Review Hyderabad | Dilsukhnagar GMAT Courses | Mehdipatnam GRE Prep | and many more... Schedule your free consultation with an experienced GMAT Prep Advisor! Click here. • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE 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

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