A sales manager at an industrial company has an opportunity to switch to a new, higher-paying job in another state. If his current annual salary is $50,000 and his current state tax rate is 5%, how much income after state tax would he make at the new job?
1) His new salary will be 10% higher than his old salary.
2) His annual state taxes will total $2,200 in the new state at his new job.
The OA is C
Source: Manhattan GMAT
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A sales manager at an industrial company has an opportunity
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(1) His new salary will be 10% higher than his old salary.
No info on state tax. If it's 5%, then 50000 + 10% *1.1 - 5% *0.95 = 52250
if it's 10%, then 50000 + 10% *1.1 - 10% *0.9 = 49500.
Not sufficient.
(2) New taxes = $2200 .
No info on his new salary. Not sufficient.
(1) & (2) Together
We have both, his new salary and the amount of state tax for the year, notice that unlike in question stem, we got this amount in absolute value and not in percentage of total income.
Answer C
No info on state tax. If it's 5%, then 50000 + 10% *1.1 - 5% *0.95 = 52250
if it's 10%, then 50000 + 10% *1.1 - 10% *0.9 = 49500.
Not sufficient.
(2) New taxes = $2200 .
No info on his new salary. Not sufficient.
(1) & (2) Together
We have both, his new salary and the amount of state tax for the year, notice that unlike in question stem, we got this amount in absolute value and not in percentage of total income.
Answer C
