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Register now and save up to $200 Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Reach higher with Artificial Intelligence. Guaranteed Now free for 30 days Available with Beat the GMAT members only code ## Salesperson This topic has 4 expert replies and 3 member replies ### Top Member lheiannie07 Legendary Member Joined 07 Sep 2017 Posted: 710 messages Followed by: 4 members #### Salesperson Thu Sep 07, 2017 5:07 pm Salesperson A's compensation for any week is$360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation? (A)$21,000
(B) $18,000 (C)$15,000
(D) $4,500 (E)$ 4,000

Quote:
Answer : C
How is the option C the answer to this question?
Can any experts explain the fastest way to answer this question?

### GMAT/MBA Expert

Rich.C@EMPOWERgmat.com Elite Legendary Member
Joined
23 Jun 2013
Posted:
9309 messages
Followed by:
478 members
Upvotes:
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GMAT Score:
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Top Reply
Thu Sep 07, 2017 8:33 pm
Hi Iheiannie07,

We're told the pay rates for two salespeople:
1) Salesperson A = $360 + 6% of sales above$1,000
2) Salesperson B = 8% of sales

We're asked for the total sales that would lead to the SAME pay for each salesperson. This question can be solved algebraically or by TESTing THE ANSWERS. Here's how you can answer the question with the second method:

Let's TEST Answer B: $18,000 Person A =$360 + 6% of $17,000 =$360 + $1020 =$1380
Person B = 8% of $18,000 =$1440
These two values are close but not the same. Since Person B receives a higher percentage of every dollar in sales, a larger sales total would create a larger difference between what the two salespeople are paid. Thus, we need an answer that is SMALLER that $18,000 (but not that much smaller, relatively speaking). Let's TEST Answer C:$15,000
Person A = $360 + 6% of$14,000 = $360 +$840 = $1200 Person B = 8% of$15,000 = $1200 These two values are EQUAL, so this MUST be the answer. Final Answer: C GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at Rich.C@empowergmat.com ### GMAT/MBA Expert Matt@VeritasPrep GMAT Instructor Joined 12 Sep 2012 Posted: 2637 messages Followed by: 114 members Upvotes: 625 Target GMAT Score: V51 GMAT Score: 780 Top Reply Wed Sep 20, 2017 4:16 pm We could also try to speed up the problem by thinking of the differences in the incomes. A has a$360 head start. After each salesperson sells $1000 of product, B has$80 and A has the same as (s)he started with, $360, since A gets no commission on the first$1000.

From here, B needs to make up $360 -$80, or $280, to be even with A. B gets 2% more commission, so if each salesperson sells$x worth of product, 2% of $x must =$280, the difference to be made up.

.02x = 280 gives us x = $14,000, so after *another*$14,000 in sales the reps will be even.

We started with $1000, of course, leaving us a sales total of$1000 + $14,000, or$15,000.

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### GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
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Wed Sep 20, 2017 4:11 pm
Put the equation in words, then translate those words to math:

A makes $360 + 6% of (Total -$1000)

B makes 8% of Total

We want these to be equal, so:

$360 + 6% of (Total -$1000) = 8% of Total

Now let's assign a variable to the total (how about t?) and write the percentages as decimals:

360 + .06*(t - 1000) = .08t

... and from there it's just boring arithmetic!

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### Top Member

lheiannie07 Legendary Member
Joined
07 Sep 2017
Posted:
710 messages
Followed by:
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Thu Oct 12, 2017 1:36 pm
Rich.C@EMPOWERgmat.com wrote:
Hi Iheiannie07,

We're told the pay rates for two salespeople:
1) Salesperson A = $360 + 6% of sales above$1,000
2) Salesperson B = 8% of sales

We're asked for the total sales that would lead to the SAME pay for each salesperson. This question can be solved algebraically or by TESTing THE ANSWERS. Here's how you can answer the question with the second method:

Let's TEST Answer B: $18,000 Person A =$360 + 6% of $17,000 =$360 + $1020 =$1380
Person B = 8% of $18,000 =$1440
These two values are close but not the same. Since Person B receives a higher percentage of every dollar in sales, a larger sales total would create a larger difference between what the two salespeople are paid. Thus, we need an answer that is SMALLER that $18,000 (but not that much smaller, relatively speaking). Let's TEST Answer C:$15,000
Person A = $360 + 6% of$14,000 = $360 +$840 = $1200 Person B = 8% of$15,000 = $1200 These two values are EQUAL, so this MUST be the answer. Final Answer: C GMAT assassins aren't born, they're made, Rich Thank you, this is a great help ### Top Member lheiannie07 Legendary Member Joined 07 Sep 2017 Posted: 710 messages Followed by: 4 members Thu Oct 12, 2017 1:37 pm Matt@VeritasPrep wrote: Put the equation in words, then translate those words to math: A makes$360 + 6% of (Total - $1000) B makes 8% of Total We want these to be equal, so:$360 + 6% of (Total - $1000) = 8% of Total Now let's assign a variable to the total (how about t?) and write the percentages as decimals: 360 + .06*(t - 1000) = .08t ... and from there it's just boring arithmetic! Thanks a lot! ### Top Member lheiannie07 Legendary Member Joined 07 Sep 2017 Posted: 710 messages Followed by: 4 members Thu Oct 12, 2017 1:41 pm Matt@VeritasPrep wrote: We could also try to speed up the problem by thinking of the differences in the incomes. A has a$360 head start. After each salesperson sells $1000 of product, B has$80 and A has the same as (s)he started with, $360, since A gets no commission on the first$1000.

From here, B needs to make up $360 -$80, or $280, to be even with A. B gets 2% more commission, so if each salesperson sells$x worth of product, 2% of $x must =$280, the difference to be made up.

.02x = 280 gives us x = $14,000, so after *another*$14,000 in sales the reps will be even.

We started with $1000, of course, leaving us a sales total of$1000 + $14,000, or$15,000.
Thanks for helping!

### GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
Joined
12 Sep 2012
Posted:
2637 messages
Followed by:
114 members
Upvotes:
625
Target GMAT Score:
V51
GMAT Score:
780
Fri Oct 13, 2017 11:16 am
lheiannie07 wrote:
Matt@VeritasPrep wrote:
We could also try to speed up the problem by thinking of the differences in the incomes.

A has a $360 head start. After each salesperson sells$1000 of product, B has $80 and A has the same as (s)he started with,$360, since A gets no commission on the first $1000. From here, B needs to make up$360 - $80, or$280, to be even with A.

B gets 2% more commission, so if each salesperson sells $x worth of product, 2% of$x must = $280, the difference to be made up. .02x = 280 gives us x =$14,000, so after *another* $14,000 in sales the reps will be even. We started with$1000, of course, leaving us a sales total of $1000 +$14,000, or \$15,000.
Thanks for helping!
My pleasure! Thanks for thanking!

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