BTGmoderatorDC wrote:Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
OA C
Source: Veritas Prep
Question: Did Jeff record more sales revenue this month than Dan did?
Let's take each statement one by one.
(1) Jeff earned 20% more in sales commission this month than Dan did.
Since we do not know revenue and percent of sales commission, we cannot conclude anything. It may be that Jeff's sales revenue is less than Dan's, but Jeff's percent of sales commission is significantly greater than Dan's, making Jeff earn 20% more in sales commission than Dan. In that case, the answer would be no. Insufficient.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
As with Statement 1, we have no information about sales revenue. Insufficient.
(1) and (2) together
Say Jeff's sales revenue = $J and Dan's sales revenue = $D
From Statement 2, we have:
Thus, Jeff's sales commission = 8% of J = $0.08J and Dan's sales commission = 6% of D = 0.06D
From Statement 1, we have:
[(0.08J - 0.06D) / (0.06D)]*100% = 20%
(0.08J - 0.06D) / (0.06D) = 1/5
8J/6D - 1 = 1/5
4J/3D = 6/5
J/D = (6/5)*(3/4)
J/D = 9/10
=> D > J. The answer is Yes. Sufficient.
The correct answer:
C
Hope this helps!
-Jay
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