Source: Veritas Prep
Did Jeff record more sales revenue this month than Dan did?
1) Jeff earned 20% more in sales commissions this month than Dan did.
2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
The OA is C.
Did Jeff record more sales revenue this month than Dan did?
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We need to determine whether Jeff recorded more sales revenue this month than Dan.BTGmoderatorLU wrote:Source: Veritas Prep
Did Jeff record more sales revenue this month than Dan did?
1) Jeff earned 20% more in sales commissions this month than Dan did.
2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
The OA is C.
Let's take each statement one by one.
1) Jeff earned 20% more in sales commissions this month than Dan did.
Given that Jeff earned 20% more in sales commissions this month than Dan did does not mean that Jeff recorded more sales revenue this month than Dan.
Since we do not know their percentage commission, we cannot conclude. Insufficient.
2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
It is also insufficient. With Jeff earning a greater percentage of commission (8% > 6%), does not mean that sales revenue would also be greater than that of Dan.
(1) and (2) together
We see that Jeff's percentage of commission is greater than that of Dan (8% > 6%). Or, Jeff's commission is 8%/6% = 1.33 times the commission of Dan, provided both clocked equal sales.
However, from Statement 1, we know that Jeff earned 20% more in sales commissions this month than Dan did. In other words, Jeff earned 120% (= 100% + 20%) or 120/100 = 1.2 times the sales commissions of Dan did. Since 1.2 < 1.33, it means that Jeff's sales revenue must be less than that of Dan. The answer is No. Sufficient.
The correct answer: C
Hope this helps!
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Another approach:BTGmoderatorLU wrote:Source: Veritas Prep
Did Jeff record more sales revenue this month than Dan did?
1) Jeff earned 20% more in sales commissions this month than Dan did.
2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
The OA is C.
We need to determine whether Jeff recorded more sales revenue this month than Dan.
Say Jeff's sales revenue = $J and Dan's sales revenue = $D.
Question: Is J > D?
Let's take each statement one by one.
We already know that each statement alone is not sufficient.
(1) and (2) together
From Statement 2, we have
Dan's commission on his sales = 6% of D = 0.06D;
Jeff's commission on his sales = 8% of J = 0.08J
Thus, from Statement (1), we have
[(0.08J - 0.06D) / 0.06D]*100% = 20%
4J/3D - 1 = 1/5
J/D = 9/10
=> J < D.
The answer is No. Sufficient.
The correct answer: C
Hope this helps!
-Jay
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Statement 1:BTGmoderatorLU wrote:Source: Veritas Prep
Did Jeff record more sales revenue this month than Dan did?
1) Jeff earned 20% more in sales commissions 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.
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