Gmatprep# Commission

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by Mani_mba » Wed Oct 22, 2008 1:07 am
Total sales = 800$

Commission for the first 500$ = 20%(500) = 100$
Commission for the rest 300$ = 30%(300) = 90$

Total commission = 190$

% Commission of total amount = 100* 190/800 = 23.75~24%

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by vishubn » Wed Oct 22, 2008 8:47 am
YA ! :)
no other approach i guess

800 is her total sales

so first 500 she gets 20% that is 100 $
amount exceeding 500 is 300 on which she gets 30% that is 90$

so total she gets 190$

190 is wat percent of 800 it is 23.75%

which is 24 % is the answer :)

u can definitely rule out 25% coz it must 200$ and also not 22% coz for the condition to be true the commission she got must have been 176$ so only option left is 24%

Vishu

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Little help here

by vladmire » Tue Dec 02, 2008 6:40 pm
I was thinking the equation would look like .20(500x) + .30(x-500)=800
How do I get to the point where I get 300 to take .30percent of it for $90 and so forth

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Re: Little help here

by hwiya320 » Tue Dec 02, 2008 8:41 pm
vladmire wrote:I was thinking the equation would look like .20(500x) + .30(x-500)=800
How do I get to the point where I get 300 to take .30percent of it for $90 and so forth
you were going the right direction with your equation except for one.

You're taking 20% of 500 of x.

The question states that it's 20% of 500 dollars which is 100 dollars, constant value. Plus it gives you the value of total sales, x = 800.
1. you need to determine the commission
2. you need to determine the commission to total sales ratio

it should be (0.20*100) + 0.30(800-500) = commission
then commission / 800