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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 retail store employs only clerks and managers and the ##### This topic has 2 expert replies and 0 member replies ### Top Member ## A retail store employs only clerks and managers and the ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult A retail store employs only clerks and managers and the clerks earn$11.50/hour while the managers earn $19/hour. Last year, the store had 20 employees and its average employee earned$13/hour. Thus far this year, the store has hired 4 clerks and promoted some of last yearâ€™s clerks to manager. If the store has undergone no other personnel changes and the average employee now earns $14/hour, how many clerks were promoted to manager? A. 2 B. 4 C. 6 D. 7 E. 8 OA B Source: Veritas Prep ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2801 messages Followed by: 18 members Upvotes: 43 Top Reply BTGmoderatorDC wrote: A retail store employs only clerks and managers and the clerks earn$11.50/hour while the managers earn $19/hour. Last year, the store had 20 employees and its average employee earned$13/hour. Thus far this year, the store has hired 4 clerks and promoted some of last yearâ€™s clerks to manager. If the store has undergone no other personnel changes and the average employee now earns $14/hour, how many clerks were promoted to manager? A. 2 B. 4 C. 6 D. 7 E. 8 OA B Source: Veritas Prep We can let x = the number of clerks in the store before any new hires or promotions. Thus, 20 - x = the number of managers, and we can create the equation: (11.5x + 19(20 - x))/20 = 13 11.5x + 380 - 19x = 260 -7.5x = -120 x = 16 Therefore, there were 16 clerks and 4 managers before any new hires or promotions, and there were 24 employees after the personnel changes. Now letâ€™s let n = the number of clerks who were promoted to manager. Since there are 4 new clerks who were hired, we can create the equation for the income of the employees: (11.5(16 + 4 - n) + 19(4 + n))/24 = 14 230 - 11.5n + 76 + 19n = 336 7.5n = 30 n = 4 Answer: B _________________ Scott Woodbury-Stewart Founder and CEO scott@targettestprep.com See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15354 messages Followed by: 1864 members Upvotes: 13060 GMAT Score: 790 Top Reply BTGmoderatorDC wrote: A retail store employs only clerks and managers and the clerks earn$11.50/hour while the managers earn $19/hour. Last year, the store had 20 employees and its average employee earned$13/hour. Thus far this year, the store has hired 4 clerks and promoted some of last yearâ€™s clerks to manager. If the store has undergone no other personnel changes and the average employee now earns $14/hour, how many clerks were promoted to manager? A. 2 B. 4 C. 6 D. 7 E. 8 Last year's payroll = (number of employees)(average hourly wage) = 20*13 = 260. This year 4 clerks are hired, increasing the number of employees to 24. Since the average hourly wage this year = 14, we get: This year's payroll = (number of employees)(average hourly wage) = 24*14 = 336. Payroll increase between this year and last year = 336-260 = 76. Since clerks earn$11.50 per hour, the total wages for the 4 newly hired clerks = (4)(11.5) = 46.
Amount earned by the promoted employees = (total payroll increase) - (total wages for the 4 newly hired clerks) = 76-46 = 30.
Since a promoted employee's hourly wage increases from $11.50 to$19 -- an increase of $7.50 per hour -- the number of promoted employees = 30/7.5 = 4. The correct answer is B. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 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. • 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 • 1 Hour Free 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 • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

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