BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

A sales manager at an industrial company has an opportunity

Expert replies
by AAPL » Thu Dec 20, 2018 5:36 am

Timer

00:00

Answers

A

B

C

D

E

Stats

Difficulty

Manhattan Prep

A sales manager at an industrial company has an opportunity to switch to a new, higher-paying job in another state. If his current annual salary is $50,000 and his current state tax rate is 5%, how much income after state tax would he make at the new job?

1) His new salary will be 10% higher than his old salary.
2) His annual state taxes will total $2,200 in the new state at his new job.

OA C
Join the discussion
Source: — Data Sufficiency |

edited

by deloitte247 » Sat Dec 22, 2018 2:55 am
How much income after state tax would he make at the new job?
Income = New salary - New tax

Statement 1
New salary $$=\left(\frac{10}{100}\cdot50,000\right)+50,000dollars$$ $$5,000+50,000=55,000dollars$$
No information about the new tax, hence statement 1 is INSUFFICIENT.

Statement 2
His annual state taxes will total 2,200 dollars in the new state at his new job.
New tax = 2,200 dollars
No information about the new salary, hence statement 2 is INSUFFICIENT.

Statement 1 and 2 together
New salary = 55,000 dollars
New tax = 2,200 dollars

Income = (55,000 - 2,200) dollars
$$=52,800\ dollars\ $$
$$Both\ statement\ 1\ and\ 2\ combined\ is\ SUFFICIENT\ $$
$$answer\ is\ Option\ C$$
Join the discussion