At Funston Stores, a salesperson's salary is comprised solely of commissions from sales. A particular salesperson's annual salary was lower in 2009 than in 2008. In both years, all of this salesperson's sales were of only one item, product X, and he made the same number of product X sales in both years. The commission percentage for all Funston salespeople has remained unchanged over the past ten years.
The information above most strongly supports which of the following?
A) Through all of Funston Stores, the overall number of sales of product X declined from 2008 to 2009
B) This salesperson would have earned a higher salary if her sales were in more than one product.
C) The commission percentage that Funston store salespeople earn is lower compared to the percentage of salespeople at similar stores.
D) The price of product X dropped from 2008 to 2009.
E) The overall profits of Funston stores were lower in 2009 than it was in 2008.
Just an easy one, can some experts determine why is it the best Option?
OA D
5-Day Free Trial
5-day free, full-access trial TTP
Available with Beat the GMAT members only code
MORE DETAILS
At Funston Stores, a salesperson's salary
This topic has expert replies
-
BTGmoderatorDC
- Moderator
- Posts: 7187
- Joined: Thu Sep 07, 2017 4:43 pm
- Followed by:23 members
-
DavidG@VeritasPrep
- Legendary Member
- Posts: 2663
- Joined: Wed Jan 14, 2015 8:25 am
- Location: Boston, MA
- Thanked: 1153 times
- Followed by:128 members
- GMAT Score:770
Think of it this way. The revenue generated from sales = Quantity * Unit Price.lheiannie07 wrote:At Funston Stores, a salesperson's salary is comprised solely of commissions from sales. A particular salesperson's annual salary was lower in 2009 than in 2008. In both years, all of this salesperson's sales were of only one item, product X, and he made the same number of product X sales in both years. The commission percentage for all Funston salespeople has remained unchanged over the past ten years.
The information above most strongly supports which of the following?
A) Through all of Funston Stores, the overall number of sales of product X declined from 2008 to 2009
B) This salesperson would have earned a higher salary if her sales were in more than one product.
C) The commission percentage that Funston store salespeople earn is lower compared to the percentage of salespeople at similar stores.
D) The price of product X dropped from 2008 to 2009.
E) The overall profits of Funston stores were lower in 2009 than it was in 2008.
Just an easy one, can some experts determine why is it the best Option?
OA D
Thus, the commissions earned = Commission % * Quantity * Unit Price
If the above product decreases, but the commission % and the quantity are unchanged, then the unit price had to have decreased. The answer is D
