Paul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells. In addition, he earns commission as follows:
Commission Sales
10% $0.00 - $10,000.00
5% $10,000.01 --->
He does not earn "double commission." That is, if his sales are $12,000, he earns 10% on the first $10,000 and 5% on the remaining $2,000.
His largest paycheck of the year was $1,320. What were his sales for that pay period?
A)13,200
B)14,800
C)16,400
D)15,800
E)19,600
Answer: A
Source: Veritas Prep
5-Day Free Trial
5-day free, full-access trial TTP
Available with Beat the GMAT members only code
MORE DETAILS
Paul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells. In additio
This topic has expert replies
-
Gmat_mission
- Legendary Member
- Posts: 1622
- Joined: Thu Mar 01, 2018 7:22 am
- Followed by:2 members
Timer
00:00
Your Answer
A
B
C
D
E
Global Stats
-
ravinikhil
- Junior | Next Rank: 30 Posts
- Posts: 11
- Joined: Thu Sep 10, 2020 6:03 am
Let's just say,
he earned 1320$ on his best month
now he will get 160$ regardless of what he sells,
so let's subtract that amount to get the sales idea.
so now 1320 - 160 = 1160$
now since the money remaining is greater than 1000$ meaning he has earned a full 10% on his sales commission. hence he at least did a sales of 10000$ in that month,
lets go further
1160 - 1000 = 160$.
now he will need to do some amount of sales to get 5% commission on them which makes it total 160$
so , 5% of x = 160
x = 3200
hence total sales is 10000 + 3200 = 13200$ which is the ans
he earned 1320$ on his best month
now he will get 160$ regardless of what he sells,
so let's subtract that amount to get the sales idea.
so now 1320 - 160 = 1160$
now since the money remaining is greater than 1000$ meaning he has earned a full 10% on his sales commission. hence he at least did a sales of 10000$ in that month,
lets go further
1160 - 1000 = 160$.
now he will need to do some amount of sales to get 5% commission on them which makes it total 160$
so , 5% of x = 160
x = 3200
hence total sales is 10000 + 3200 = 13200$ which is the ans
GMAT/MBA Expert
-
Scott@TargetTestPrep
- GMAT Instructor
- Posts: 7244
- Joined: Sat Apr 25, 2015 10:56 am
- Location: Los Angeles, CA
- Thanked: 43 times
- Followed by:29 members
Solution:Gmat_mission wrote: ↑Thu Sep 10, 2020 12:33 amPaul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells. In addition, he earns commission as follows:
Commission Sales
10% $0.00 - $10,000.00
5% $10,000.01 --->
He does not earn "double commission." That is, if his sales are $12,000, he earns 10% on the first $10,000 and 5% on the remaining $2,000.
His largest paycheck of the year was $1,320. What were his sales for that pay period?
A)13,200
B)14,800
C)16,400
D)15,800
E)19,600
Answer: A
Since he earns $160 as base salary and 10% of $10,000 is $1,000, if he sells no more than $10,000 worth of encyclopedias, the maximum he earns is $1,160. However, since he earns $1,320, he must have sold more than $10,000 worth of encyclopedias. Therefore, if we let x = his sales for the paycheck of $1,320, we can create the equation:
160 + 0.1(10,000) + 0.05(x - 10,000) = 1,320
160 + 1,000 + 0.05x - 500 = 1,320
660 + 0.05x = 1,320
0.05x = 660
x = 13,200
Answer: A
Scott Woodbury-Stewart
Founder and CEO
[email protected]
See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews
