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While Mel is on disability leave, his employer pays him a

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While Mel is on disability leave, his employer pays him a

by swerve » Mon Apr 22, 2019 1:02 pm

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A

B

C

D

E

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While Mel is on disability leave, his employer pays him a monthly disability benefit equal to $1,200 plus 40% of the amount of his monthly salary in excess of $2,000. What is Mel's monthly salary?

1) Mel's monthly disability benefit from his employer is $1,600.
2) Mel's monthly salary exceeds $2,500.

The OA is A

Source: GMAT Paper Tests
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Source: — Data Sufficiency |
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edited

by deloitte247 » Sat Apr 27, 2019 9:37 pm

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Monthly disability benefit
$$=\ 1,200\ dollar+40\ \%of\ \left(salary-2000 dollar\right)$$
What's Mel's share

Statement 1
Mel's monthly disability benefit from his employer id 1,600 dollars
$$=\ 1,200\ dollar+40\ \%of\ \left(salary+2000 dollar\right)$$
Where Monthly disability benefit = 1,600 dollars
$$1600\ dollar=1200\ dollar+\frac{40}{100}\left(Salary\ -2000\ dollar\right)$$
Let salary = S
$$1600=1200+\frac{40S-80000}{100}$$
$$1600-1200=\frac{40S-80000}{100}$$
$$400=\frac{40S-80000}{100}$$
$$40000=40S-80000$$
$$40000+80000=40S$$
$$120000=40S$$
$$\frac{120000}{40}=S$$
$$S=3000$$
$$3000-2000\left(Excess\right)=1000\ dollar$$

Statement 2
Mel's monthly salary exceed 2500 dollar monthly salary can be a lot of option ranging from 2501 dollar till infinity hence statement is NOT SUFFICIENT.
Statement 1 alone is SUFFICIENT.

$$answer\ is\ Option\ A$$
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