Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
OA C
Source: Veritas Prep
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Did Jeff record more sales revenue this month than Dan did?
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BTGmoderatorDC
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Jay@ManhattanReview
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Question: Did Jeff record more sales revenue this month than Dan did?BTGmoderatorDC wrote:Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
OA C
Source: Veritas Prep
Let's take each statement one by one.
(1) Jeff earned 20% more in sales commission this month than Dan did.
Since we do not know revenue and percent of sales commission, we cannot conclude anything. It may be that Jeff's sales revenue is less than Dan's, but Jeff's percent of sales commission is significantly greater than Dan's, making Jeff earn 20% more in sales commission than Dan. In that case, the answer would be no. Insufficient.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
As with Statement 1, we have no information about sales revenue. Insufficient.
(1) and (2) together
Say Jeff's sales revenue = $J and Dan's sales revenue = $D
From Statement 2, we have:
Thus, Jeff's sales commission = 8% of J = $0.08J and Dan's sales commission = 6% of D = 0.06D
From Statement 1, we have:
[(0.08J - 0.06D) / (0.06D)]*100% = 20%
(0.08J - 0.06D) / (0.06D) = 1/5
8J/6D - 1 = 1/5
4J/3D = 6/5
J/D = (6/5)*(3/4)
J/D = 9/10
=> D > J. The answer is Yes. Sufficient.
The correct answer: C
Hope this helps!
-Jay
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Jay@ManhattanReview
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An alternate approach to solving this question...BTGmoderatorDC wrote:Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
OA C
Source: Veritas Prep
From Statement 2, had the sales revenue of Jeff and Dan were equal, the sales commission earned by Jeff would have been (8/6)*100% = 33.33% greater than Dan sales commission; however, from Statement 1, we know that it's ONLY 20% (< 33/33%) more than Dan sales commission. It means that Jeff's sales revenue must be less than Dan's sales revenue.
The correct answer: C
Hope this helps!
-Jay
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GMATGuruNY
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Statement 1:BTGmoderatorDC wrote:Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
For every $100 commission that Dan earns, Jeff earns $120 in commission.
Since the commission rates for Dan and Jeff are unknown, no way to determine whether Jeff recorded more sales revenue than Dan.
INSUFFICIENT.
Statement 2:
Since Jeff's sales and Dan's sales can be any combination of values, no way to determine whether Jeff recorded more sales revenue than Dan.
INSUFFICIENT.
Statements combined:
Test whether it's possible that Jeff's sales and Dan's sales are EQUAL.
Let Jeff's sales = 100 and Dan's sales = 100.
Since Dan earns a 6% commission, Dan's commission = (6/100)(100) = $6.
Since Jeff earns an 8% commission, Jeff's commission = (8/100)(100) = $8.
When Jeff's sales and Dan's sales are equal, (Jeff's commission)/(Dan's commission) = 8/6 = 4/3 = 20/15.
Statement 1 requires that (Jeff's commission)/(Dan's commission) = 120/100 = 6/5 = 18/15.
Since the value in red is greater than the value in blue, equal sales for Jeff and Dan yield a commission for Jeff that is TOO HIGH.
Implication:
For Jeff's commission NOT to be too high, Jeff must record LESS sales revenue than Dan.
SUFFICIENT.
The correct answer is C.
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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].
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