A sales associate earns a commission of 8% on

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Gmat_mission: Legendary Member; Posts: 1622; Joined: Thu Mar 01, 2018 7:22 amFollowed by: 2 members

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

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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: Beat The GMAT — Data Sufficiency | Mon Jun 18, 2018 2:18 am

GMATGuruNY: GMAT Instructor; Posts: 15539; Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members; Location: New York, NY; Thanked: 13060 times; GMAT Score:790

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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