• NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    Hundreds of Questions Highly Detailed Reporting Expert Explanations TAKE A FREE GMAT QUIZ
  • 7 CATs FREE!
    If you earn 100 Forum Points

    Engage in the Beat The GMAT forums to earn
    100 points for $49 worth of Veritas practice GMATs FREE

    Veritas Prep
    VERITAS PRACTICE GMAT EXAMS
    Earn 10 Points Per Post
    Earn 10 Points Per Thanks
    Earn 10 Points Per Upvote
    REDEEM NOW

Paul sells encyclopedias door-to-door. He earns $160 on

This topic has 2 expert replies and 0 member replies

Paul sells encyclopedias door-to-door. He earns $160 on

Post

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

Difficult



Veritas Prep

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

OA A.

  • +1 Upvote Post
  • Quote
  • Flag
Post
AAPL wrote:
Veritas Prep

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
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
scott@targettestprep.com



See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

Post
Hi All,

We're told that Paul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells and a commission as follows:

10% on the first $10,000.00 and 5% for any additional sales beyond that.

His largest paycheck of the year was $1,320. We're asked for his sales for that pay period. This question can be approached in a couple of different ways. Based on the given answer choices, we can take advantage of a couple of built-in patterns and avoid some of the extra 'math steps.'

To start, we can see that all of the answers are ABOVE $10,000, so we know that part of his commissions was 10% of $10,000 = $1,000. Paul received $160 on top of that piece of his commission, so we have accounted for $1,160. Now, we just have to account for the extra $1320 - $1160 = $160 he earned...

That extra commission was based on 5% of the sales ABOVE $10,000.
5% of $1,000 = $50
$160 is a little more than (3)($50), so the extra sales had to be a little more than (3)($1000). Thus, his total sales for that period were a LITTLE MORE than $10,000 + $3000 = $13,000...

Final Answer: A

GMAT assassins aren't born, they're made,
Rich

_________________
Contact Rich at Rich.C@empowergmat.com

  • +1 Upvote Post
  • Quote
  • Flag
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • The Princeton Review
    FREE GMAT Exam
    Know how you'd score today for $0

    Available with Beat the GMAT members only code

    MORE DETAILS
    The Princeton Review
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep

Top First Responders*

1 Ian Stewart 64 first replies
2 Brent@GMATPrepNow 53 first replies
3 Jay@ManhattanReview 53 first replies
4 GMATGuruNY 30 first replies
5 Rich.C@EMPOWERgma... 20 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

Most Active Experts

1 image description Scott@TargetTestPrep

Target Test Prep

168 posts
2 image description Max@Math Revolution

Math Revolution

86 posts
3 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

84 posts
4 image description Ian Stewart

GMATiX Teacher

69 posts
5 image description Rich.C@EMPOWERgma...

EMPOWERgmat

60 posts
See More Top Beat The GMAT Experts