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A sales associate earns a commission of 8% on

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by Gmat_mission » Mon Jun 18, 2018 2:18 am

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Answers

A

B

C

D

E

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Difficulty—

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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Source: — Data Sufficiency |
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by GMATGuruNY » Mon Jun 18, 2018 2:42 am
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.
Initial commission = 8% of 10,000 = $800.
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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