## As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no... ##### This topic has expert replies Moderator Posts: 1980 Joined: 15 Oct 2017 Followed by:6 members ### As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of$35,000 with no...

by BTGmoderatorLU » Sun Jul 19, 2020 7:49 am

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## Global Stats

Source: GMAT Paper Tests

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commissions or an annual salary of$10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

A. $100,000 B.$120,000
C. $125,000 D.$130,000
E. $132,000 The OA is C ### GMAT/MBA Expert GMAT Instructor Posts: 6362 Joined: 25 Apr 2015 Location: Los Angeles, CA Thanked: 43 times Followed by:25 members ### Re: As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of$35,000 with n

by [email protected] » Thu Jul 15, 2021 9:36 am
BTGmoderatorLU wrote:
Sun Jul 19, 2020 7:49 am
Source: GMAT Paper Tests

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commissions or an annual salary of$10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

A. $100,000 B.$120,000
C. $125,000 D.$130,000
E. $132,000 The OA is C Solution: We can let Phyllis’s annual sales be x dollars and create the equation: 10,000 + 0.2x = 35,000 0.2x = 25,000 x = 25,000/0.2 = 125,000 Answer: C Scott Woodbury-Stewart Founder and CEO [email protected] See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews ### GMAT/MBA Expert GMAT Instructor Posts: 15751 Joined: 08 Dec 2008 Location: Vancouver, BC Thanked: 5254 times Followed by:1266 members GMAT Score:770 ### Re: As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of$35,000 with n

by [email protected] » Fri Jul 16, 2021 5:24 am
BTGmoderatorLU wrote:
Sun Jul 19, 2020 7:49 am
Source: GMAT Paper Tests

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commissions or an annual salary of$10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

A. $100,000 B.$120,000
C. $125,000 D.$130,000
E. $132,000 The OA is C For the first payment method, she receives$35,000

Payment = annual salary of \$10,000 plus a 20 percent commission on her total annual sales
Let x = Phyllis' annual sales
So: her payment = 10,000 + (20% of x)
Simplify: payment = 10,000 + 0.2x

What must her total annual sales be to give her the same annual pay with either method?
If the two amounts are EQUAL, we can write: 10,000 + 0.2x = 35,000
Subtract 10,000 from both sides to get: 0.2x = 25,000
Solve: x = 25,000/0.2 = = 250,000/2 = 125,000