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## Paul sells encyclopedias door-to-door. He earns $160 on ## 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. ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2595 messages Followed by: 18 members Upvotes: 43 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 ### GMAT/MBA Expert Elite Legendary Member Joined 23 Jun 2013 Posted: 10184 messages Followed by: 494 members Upvotes: 2867 GMAT Score: 800 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 • Award-winning private GMAT tutoring Register now and save up to$200

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