A sales associate earns a commission of 8% on her first $10,000 in sales revenue in a given week and a commission of 10% on any additional sales revenue that the associate generates that week. How much sales revenue did the associate generate last week?
(1) The sales associate earned a total of $1,500 in commission last week.
(2) Last week, the sales associate was eligible for the 10% commission rate on $7,000 of additional sales.
[spoiler]OA=D[/spoiler]
Could someone show me why each statement is sufficient? Thanks in advance.
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A sales associate earns a commission of 8% on
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Gmat_mission
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Initial commission = 8% of 10,000 = $800.Gmat_mission wrote:A sales associate earns a commission of 8% on her first $10,000 in sales revenue in a given week and a commission of 10% on any additional sales revenue that the associate generates that week. How much sales revenue did the associate generate last week?
(1) The sales associate earned a total of $1,500 in commission last week.
(2) Last week, the sales associate was eligible for the 10% commission rate on $7,000 of additional sales.
Let x = the sales amount after the first $10,000.
Additional commission = 10% of sales amount after the first $10,000 = (1/10)x.
To calculate the total sales, we need to know the value of x.
Question stem, rephrased:
What is the value of x?
Statement 1:
Additional commission = (total commission) - (initial commission) = 1500 - 800 = 700.
Thus:
(1/10)x = 700
x = 7000.
SUFFICIENT.
Statement 2:
x = 7000.
SUFFICIENT.
The correct answer is D.
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I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
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