BTGmoderatorLU wrote:Source: Veritas Prep
Did Jeff record more sales revenue this month than Dan did?
1) Jeff earned 20% more in sales commissions this month than Dan did.
2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
Statement 1:
For every $100 commission that Dan earns, Jeff earns $120 in commission.
Since the commission rates for Dan and Jeff are unknown, no way to determine whether Jeff recorded more sales revenue than Dan.
INSUFFICIENT.
Statement 2:
Since Jeff's sales and Dan's sales can be any combination of values, no way to determine whether Jeff recorded more sales revenue than Dan.
INSUFFICIENT.
Statements combined:
Test whether it's possible that Jeff's sales and Dan's sales are EQUAL.
Let Jeff's sales = 100 and Dan's sales = 100.
Since Dan earns a 6% commission, Dan's commission = (6/100)(100) = $6.
Since Jeff earns an 8% commission, Jeff's commission = (8/100)(100) = $8.
When Jeff's sales and Dan's sales are equal, (Jeff's commission)/(Dan's commission) = 8/6 = 4/3 = 20/15.
Statement 1 requires that (Jeff's commission)/(Dan's commission) = 120/100 = 6/5 = 18/15.
Since the value in red is greater than the value in blue, equal sales for Jeff and Dan yield a commission for Jeff that is TOO HIGH.
Implication:
For Jeff's commission NOT to be too high, Jeff must record LESS sales revenue than Dan.
SUFFICIENT.
The correct answer is
C.
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