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Salesman and Ratios

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by Bullzi » Fri Oct 02, 2015 5:04 am
A used cars salesman receives an annual bonus if he meets a certain quota. This year, the salesman has so far sold 1/5 of last year's quota. If this year's quota is reduced by 25 percent, the quantity that he still needs to sell this year in order to receive the annual bonus is what fraction of the preceding year's car quota?

A. 4/15
B. 4/20
C. 3/4
D. 11/20
E. 9/20

Given Answer - Option D

I couldn't clearly make out what the target question is. Please help..!

Thanks
Bullzi
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Source: — Problem Solving |

by GMATGuruNY » Fri Oct 02, 2015 5:17 am
Bullzi wrote:A used cars salesman receives an annual bonus if he meets a certain quota. This year, the salesman has so far sold 1/5 of last year's quota. If this year's quota is reduced by 25 percent, the quantity that he still needs to sell this year in order to receive the annual bonus is what fraction of the preceding year's car quota?

A. 4/15
B. 4/20
C. 3/4
D. 11/20
E. 9/20
Let last year's quota = $100.
Amount sold so far this year = 1/5 of last year's quota = (1/5)(100) = $20.
Since this year's quote is 25% less than year's quota, this year's quota = 100 - (25% of 100) = 100-25 = $75.
Since this year's quota = $75, and the amount sold thus far this year = $20, the remaining amount to be sold this year = 75-20 = $55.
Resulting fraction:
(remaining amount to be sold)/(last year's quota) = 55/100 = 11/20.

The correct answer is D.
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by Bullzi » Fri Oct 02, 2015 5:26 am
Thanks Mitch for your response..

While I can follow the calculations, the reason I couldn't get the problem right was because I assumed
1. The statement
'If this year's quota is reduced by 25 percent' is a standalone statement and
2. The quota referred in the problem needn't be the same for both years

Since it isn't explicitly mentioned in the problem, are we assuming this year's quota (before the reduction) is same as last year's?

Thanks
Bullzi
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by GMATGuruNY » Fri Oct 02, 2015 5:44 am
Your concern is valid.
The following clause does not clearly convey the intended meaning:
If this year's quota is reduced by 25 percent
Better wording:
If this year's quota is 25 percent less than last year's...
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
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by Bullzi » Fri Oct 02, 2015 5:47 am
Thanks Mitch for clarifying again..

Bullzi
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