As a salesperson, Phyllis can choose one of two methods of

Expert replies

Previous Topic Next Topic

swerve: Legendary Member; Posts: 2560; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

by swerve » Sun Sep 08, 2019 4:07 am

Timer

00:00

Answers

Stats

Difficulty—

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission 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

Source: GMAT Paper Tests

Like this post

Source: Beat The GMAT — Problem Solving | Sun Sep 08, 2019 4:07 am

GMAT/MBA Expert

Brent@GMATPrepNow: GMAT Instructor; Posts: 16207; Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members; Location: Vancouver, BC; Thanked: 5254 times; GMAT Score:770

by Brent@GMATPrepNow » Sun Sep 08, 2019 5:18 am

swerve wrote:As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission 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

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

Answer: C

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

Like this post

GMAT/MBA Expert

Scott@TargetTestPrep: GMAT Instructor; Posts: 8177; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Thu Sep 12, 2019 10:21 am

swerve wrote:As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission 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

Source: GMAT Paper Tests

We can let total annual sales = x and create the following equation:

35,000 = 10,000 + 0.2x

25,000 = 0.2x

125,000 = x

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

Like this post

Post new topic Post Reply

• Page 1 of 1

GMAT Course Reviews

560 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (560 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review