In a certain furniture store, each week Nancy earns a salary of $240 plus 5 percent of the amount of her total sales that exceeds $800 for the week. If Nancy earned a total of $450 one week, what were her total sales that week?
A) $2,200
B) $3,450
C) $4,200
D) $4,250
E) $5,000
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Nancy's furniture store sales
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LulaBrazilia
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Hi LulaBrazilia,
You can solve this question algebraically or by TESTING the Answers. Here's how you can use the answers to your advantage...
Let's TEST answer D:
If Nancy sold $4250 in furniture, she'd get $240 + 5% of $3450....
240 + .05(3450) = 240 + 172.50 = $412.50
$412.50 is not enough money to match the $450 that she actually received, which means that answer D is TOO LOW. So we need an answer that gets her more money.
Final Answer: E
It's the only answer that's left and makes sense.
GMAT assassins aren't born, they're made,
Rich
You can solve this question algebraically or by TESTING the Answers. Here's how you can use the answers to your advantage...
Let's TEST answer D:
If Nancy sold $4250 in furniture, she'd get $240 + 5% of $3450....
240 + .05(3450) = 240 + 172.50 = $412.50
$412.50 is not enough money to match the $450 that she actually received, which means that answer D is TOO LOW. So we need an answer that gets her more money.
Final Answer: E
It's the only answer that's left and makes sense.
GMAT assassins aren't born, they're made,
Rich
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Patrick_GMATFix
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Nancy's pay is made up of a base pay of $240 and a bonus of 5% of any sales above $800. Since Nancy earned $450, we know that the $230 bonus corresponds to 5% of sales above 800. The equation $230 = 5% * x would allow us to find x, the portion of sales above $800. Adding $800 to that portion will yield her total sales (800+x). The full solution below is taken from the GMATFix App.
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Hi LulaBrazilia,
Here's the algebra solution:
Since Nancy gets 5% commission on sales that EXCEED $800, we have to factor that fact into the equation:
450 = 240 + .05(X - 800)
Now, it's just algebra:
210 = .05X - 40
250 = .05X
20(250) = .05X(20)
5,000 = X
GMAT assassins aren't born, they're made,
Rich
Here's the algebra solution:
Since Nancy gets 5% commission on sales that EXCEED $800, we have to factor that fact into the equation:
450 = 240 + .05(X - 800)
Now, it's just algebra:
210 = .05X - 40
250 = .05X
20(250) = .05X(20)
5,000 = X
GMAT assassins aren't born, they're made,
Rich
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GMATGuruNY
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Commission = total earned - salary = 450-240 = 210.LulaBrazilia wrote:In a certain furniture store, each week Nancy earns a salary of $240 plus 5 percent of the amount of her total sales that exceeds $800 for the week. If Nancy earned a total of $450 one week, what were her total sales that week?
A) $2,200
B) $3,450
C) $4,200
D) $4,250
E) $5,000
We can PLUG IN THE ANSWERS, which represent the total sales.
The commission is 5%.
Since 5% = 1/20, the correct answer choice must be a multiple of 20.
Eliminate B and D.
Answer choice C: 4200
Sales that exceed 800 = 4200-800 = 3400.
Commission = 5% of 3400 = 170.
Too small.
The correct answer is E.
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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
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