What amount did Jean earn from the commission on her sales in the first half of 1988 ?
(1) In 1988 Jean's commission was 5 percent of the total amount of her sales.
(2) The amount of Jean's sales in the second half of 1988 averaged $10,000 per month more than in the first half
Statement 1:
If Jean's total sales = $100, then her commission = 5% of 100 = $5.
If Jean's total sales = $1000, then her commission = 5% of 1000 = $50.
Since her commission can be different values, INSUFFICIENT.
Statement 2:
Since the commission rate is unknown, INSUFFICIENT.
Statements combined:
Case 1: Sales for the first half of the year = $10000 per month, sales for the second half of the year = $20000 per month
In this case:
Total sales = (6*10000) + (6*20000) = $180,000.
Commission = 5% of 180,000 = $9,000.
Case 2: Sales for the first half of the year = $20000 per month, sales for the second half of the year = $30000 per month
In this case:
Total sales = (6*20000) + (6*30000) = $300,000.
Commission = 5% of $300,000 = $15,000.
Since the commission can be different values, INSUFFICIENT.
The correct answer is
E.
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