BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

in excess of / multiple rates

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Junior | Next Rank: 30 Posts
Posts: 15
Joined: Fri Jun 18, 2010 6:56 am

in excess of / multiple rates

by ohjoon2 » Fri Jul 16, 2010 4:39 pm
is there a specific formula for a question like this?

Kevin earns a 15% commission on his first $50,000 in sales each year, and a 20% commission on sales in excess of $50,000. If Kevin's total commission last year was $12,500, what was the total amount of his sales?
Top
Source: — Problem Solving |
User avatar
GMAT Instructor
Posts: 1052
Joined: Fri May 21, 2010 1:30 am
Thanked: 335 times
Followed by:98 members

by Patrick_GMATFix » Fri Jul 16, 2010 5:00 pm
Earning is made up of 2 parts.

(1) 15% of the first 50,000 >> (15/100)(50,000) >> 15*500 >> 7,500

(2) 20% of the sales in excess of 50,000. If S is the total sales, the amount in excess of 50,000 would be S-50,000. So this part of earning is 20% of S-50,000 >> (20/100)(S-50,000) >> (S/5 - 10,000)

Total earning is 7,500 + (S/5 - 10,000) if he sold more than $50,000

We know that his total earnings were $12,500. To find S, the total amount of his sales just solve for it: 12,500 = 7,500 + (S/5 - 10,000)

-Patrick
  • Ask me about tutoring.
Top
User avatar
GMAT Instructor
Posts: 3225
Joined: Tue Jan 08, 2008 2:40 pm
Location: Toronto
Thanked: 1710 times
Followed by:614 members
GMAT Score:800

by Stuart@KaplanGMAT » Fri Jul 16, 2010 7:50 pm
ohjoon2 wrote:is there a specific formula for a question like this?

Kevin earns a 15% commission on his first $50,000 in sales each year, and a 20% commission on sales in excess of $50,000. If Kevin's total commission last year was $12,500, what was the total amount of his sales?
Hi,

this question would be super-fast to solve using backsolving; if you post the answer choices (which you should always do, since the answers on a multiple choice exam often shape your attack on the question), I'd be happy to show you how to do so.
Image

Stuart Kovinsky | Kaplan GMAT Faculty | Toronto

Kaplan Exclusive: The Official Test Day Experience | Ready to Take a Free Practice Test? | Kaplan/Beat the GMAT Member Discount
BTG100 for $100 off a full course
Top
Master | Next Rank: 500 Posts
Posts: 152
Joined: Wed Mar 12, 2008 4:36 pm
Thanked: 8 times
Followed by:2 members

by artistocrat » Fri Jul 16, 2010 9:26 pm
15/100(50000)+20X/100=12500

;X=25000

25000+50000=75000

Can someone tell me if this is correct?
Top
Senior | Next Rank: 100 Posts
Posts: 95
Joined: Tue Jun 08, 2010 11:27 am
Thanked: 7 times

by singhpreet1 » Fri Jul 16, 2010 11:37 pm
artistocrat wrote:15/100(50000)+20X/100=12500

;X=25000

25000+50000=75000

Can someone tell me if this is correct?

yea thats right!

Preet
Top
User avatar
Legendary Member
Posts: 1022
Joined: Mon Jul 20, 2009 11:49 pm
Location: Gandhinagar
Thanked: 41 times
Followed by:2 members

by shashank.ism » Sat Jul 17, 2010 1:28 am
First calculate what is 15% of 50000 = 15/100 * 50000 = 7500
so leftover commission = 12500 - 7500 = 5000
and this 5000 commission comes from 20% so that amount = 100/20 * 5000 = 25000
so total amount of his sales = 50000 + 25000 = 75000

so its a 2 step problem and may be solved in 30 sec.
step 1. 15/100 * 50000 = 7500(upto 10 sec.), 12500 - 7500 = 5000(upto 5 sec.)
step 2. 100/20 * 5000 = 25000(upto 10 sec.), 50000 + 25000 = 75000(upto 5 sec.)


add upto 30 sec. for reading the problem too..



btw back solving would be even faster than this..as stuart said.. :D
My Websites:
www.mba.webmaggu.com - India's social Network for MBA Aspirants

www.deal.webmaggu.com -India's online discount, coupon, free stuff informer.

www.dictionary.webmaggu.com - A compact free online dictionary with images.

Nothing is Impossible, even Impossible says I'm possible.
Top
Junior | Next Rank: 30 Posts
Posts: 15
Joined: Fri Jun 18, 2010 6:56 am

by ohjoon2 » Sat Jul 17, 2010 6:23 am
thanks all for the help.

p.s.
stuart-it was a sample question that i found online, there wasn't any answer choices. i just wanted to know the formula.
Top
Post new topic Post Reply
• Page 1 of 1