OG-2nd Edition - Question 114 & 134

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 110
Joined: Thu Apr 05, 2012 8:48 am
Thanked: 3 times
Followed by:1 members

OG-2nd Edition - Question 114 & 134

by shanice » Sun Aug 05, 2012 8:11 pm
1)Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A)$21,000
(B)$18,000
(C)$15,000
(D)$4,500
(E)$4,000

Answer is C.

2)If d>0 and 0<1-c/d<1, which of the following must be true?

I . c>0
II . c/d<1
III. c^2+d^2>1

(A)I only
(B)II only
(C)I and II only
(D)II and III only
(E)I,II and III


Answer is C.

Please help me with step by step explanation.

Thank you.

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 3835
Joined: Fri Apr 02, 2010 10:00 pm
Location: Milpitas, CA
Thanked: 1854 times
Followed by:523 members
GMAT Score:770

by Anurag@Gurome » Sun Aug 05, 2012 8:24 pm
shanice wrote:1)Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A)$21,000
(B)$18,000
(C)$15,000
(D)$4,500
(E)$4,000

Answer is C.

Please help me with step by step explanation.

Thank you.
Let the total weekly sales = $S (here both salespersons A and B earn the same amount)
Then 360 + 6% of (S - 1000) = 8% of S
360 + 0.06(S - 1000) = 0.08S
360 + 0.06S - 60 = 0.08S
0.02S = 300
S = [spoiler]$15,000[/spoiler]

The correct answer is C.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)

Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 3835
Joined: Fri Apr 02, 2010 10:00 pm
Location: Milpitas, CA
Thanked: 1854 times
Followed by:523 members
GMAT Score:770

by Anurag@Gurome » Sun Aug 05, 2012 8:30 pm
shanice wrote: 2)If d>0 and 0<1-c/d<1, which of the following must be true?

I . c>0
II . c/d<1
III. c^2+d^2>1

(A)I only
(B)II only
(C)I and II only
(D)II and III only
(E)I,II and III

Answer is C.

Please help me with step by step explanation.

Thank you.
0 < 1 - c/d < 1 implies c/d < 1
Since d > 0, so c > 0 so that c < d
Hence, we know that I and II are true.

We know that c < d
If c = 1, d = 2, then c² + d² = 1² + 2² = 1 + 4 = 5, which is > 1. Here c < d.
If c = 2, d = 1, then c² + d² = 2² + 1² = 4 + 1 = 5, which is > 1. Here c > d.
So, III may or may not be true.

The correct answer is C.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)

Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/

User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Mon Aug 06, 2012 3:28 am
shanice wrote:1)Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A)$21,000
(B)$18,000
(C)$15,000
(D)$4,500
(E)$4,000
We can plug in the answers, which represent the total sales.
When the correct answer is plugged in, A's compensation = B's compensation.
We should start with C, the middle answer choice.

C: 15,000
Here, A's sales above 1000 = 15000-1000 = 14000.
A's compensation = 360 + .06(14000) = 360 + 840 = 1200.
B's compensation = .08(15000) = 1200.
Success!

The correct answer is C.
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].
Student Review #1
Student Review #2
Student Review #3

User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Mon Aug 06, 2012 3:40 am
shanice wrote: If d>0 and 0<1-c/d<1, which of the following must be true?

I . c>0
II . c/d<1
III. c^2+d^2>1

(A)I only
(B)II only
(C)I and II only
(D)II and III only
(E)I,II and III
To satisfy the condition that 0 < 1- c/d < 1, c/d must be a positive fraction between 0 and 1.
Thus, II must be true.
Eliminate A.

Since d>0, in order for c/d to be a positive fraction between 0 and 1, c>0.
Thus, I must be true.
Eliminate B and D.

When a problem is not restricted to integers, BE SURE TO CONSIDER FRACTIONS.

If c = 1/4 and d = 3/4, then c/d = (1/4)/(3/4) = 1/3, satisfying the requirement that c/d be a positive fraction between 0 and 1.
If we plug c = 1/4 and d = 3/4 into III, we get:
c² + d² = (1/4)² + (3/4)² = 1/16 + 9/16 = 10/16 = 5/8, which is not greater than 1.
Thus, III does not have to be true.
Eliminate E.

The correct answer is C.
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].
Student Review #1
Student Review #2
Student Review #3

Master | Next Rank: 500 Posts
Posts: 110
Joined: Thu Apr 05, 2012 8:48 am
Thanked: 3 times
Followed by:1 members

by shanice » Fri Aug 10, 2012 12:38 am
Hi Mr.Anurag,

Let the total weekly sales = $S (here both salespersons A and B earn the same amount)
Then 360 + 6% of (S - 1000) = 8% of S
360 + 0.06(S - 1000) = 0.08S
360 + 0.06S - 60 = 0.08S
0.02S = 300
S = $15,000

The correct answer is C

As per your workings, why can't 360 + 6% of (S + 1000) = 8% of S ?

Thank you in advance.

Newbie | Next Rank: 10 Posts
Posts: 1
Joined: Thu May 14, 2015 10:30 pm

by aguirrestom » Sun Jun 07, 2015 10:53 am
Image

114)
Salesperson A's compensation for any week is $360 plus..

Adding a visual graph to answer any questions out there--hope this helps!