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A salesperson for an automobile dealer earns an annual salar

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by alanforde800Maximus » Wed May 09, 2018 7:44 am

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A salesperson for an automobile dealer earns an annual salary of $25,000 plus a commission of 10% of the salesperson's sales over $100,000. If x is the dollar amount of sales in a certain year and x is greater than $100,000, which of the following expresses the salesperson's total earnings, in dollars, for the year?

A) 25,000 + 0.1x
B) 35,000 + 0.1x
C) 125,000 + 0.1x
D) 25,000 + 0.1(100,000 - x)
E) 25,000 + 0.1(x - 100,000)
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by Sionainn@PrincetonReview » Wed May 09, 2018 11:38 am
This is a great one for plugging in. Pick a number for x, such as $200,000. If x = $200,000, then the 10% commission will be on $100,000. 10% of $100,000 is $10,000. So the total earnings is $25,000 + $10,000 or $35,000. Then plug $200,000 in for x in each of the answer choices and see which one yields $35,000.You should get:

A. $45,000
B. $55,000
C. $145,000
D. $15,000
E. $35,000

So the answer is E.

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by Brent@GMATPrepNow » Wed May 09, 2018 12:35 pm
alanforde800Maximus wrote:A salesperson for an automobile dealer earns an annual salary of $25,000 plus a commission of 10% of the salesperson's sales over $100,000. If x is the dollar amount of sales in a certain year and x is greater than $100,000, which of the following expresses the salesperson's total earnings, in dollars, for the year?

A) 25,000 + 0.1x
B) 35,000 + 0.1x
C) 125,000 + 0.1x
D) 25,000 + 0.1(100,000 - x)
E) 25,000 + 0.1(x - 100,000)
Total earnings = (base salary) + (commission)

base salary = $25,000

commission = 10% of total sales OVER $100,000
= 10% of (x - $100,000)
= 0.1(x - $100,000)

So, total earnings = $25,000 + 0.1(x - $100,000)
Answer: E

Cheers,
Brent
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by Scott@TargetTestPrep » Thu May 10, 2018 4:55 pm
alanforde800Maximus wrote:A salesperson for an automobile dealer earns an annual salary of $25,000 plus a commission of 10% of the salesperson's sales over $100,000. If x is the dollar amount of sales in a certain year and x is greater than $100,000, which of the following expresses the salesperson's total earnings, in dollars, for the year?

A) 25,000 + 0.1x
B) 35,000 + 0.1x
C) 125,000 + 0.1x
D) 25,000 + 0.1(100,000 - x)
E) 25,000 + 0.1(x - 100,000)
We can create the equation:

Earnings = 25,000 + 0.1(x - 100,000)

Answer: E

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