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What amount did Jean earn from the commission on her sales

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What amount did Jean earn from the commission on her sales

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What amount did Jean earn from the commission on her sales in the first half of 1988 ?

(1) In 1988 Jean's commission was 5 percent of the total amount of her sales.
(2) The amount of Jean's sales in the second half of 1988 averaged $10,000 per month more than in the first half.

OA E

Source: Official Guide

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BTGmoderatorDC wrote:
What amount did Jean earn from the commission on her sales in the first half of 1988 ?

(1) In 1988 Jean's commission was 5 percent of the total amount of her sales.
(2) The amount of Jean's sales in the second half of 1988 averaged $10,000 per month more than in the first half.

OA E

Source: Official Guide
Let's take each statement one by one.

(1) In 1988 Jean's commission was 5 percent of the total amount of her sales.

Certainly insufficient.

(2) The amount of Jean's sales in the second half of 1988 averaged $10,000 per month more than in the first half.

Certainly insufficient.

(1) and (2) together

Say Jean's sales in 1988 is $x and the amount of sales in the second half is $y; thus, the amount of sales in the first half is $(x - y).

=> y = 6*10,000 + (x - y); note that there are two 6-months halves in a year

x = 2y - 60,000

Commission on first half sale = 5% of $(x - y) = 5% of (y - 60,000). Since we do not have the value of y, we can't get the answer. Insufficient.

The correct answer: E

Hope this helps!

-Jay
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BTGmoderatorDC wrote:
What amount did Jean earn from the commission on her sales in the first half of 1988 ?

(1) In 1988 Jean's commission was 5 percent of the total amount of her sales.
(2) The amount of Jean's sales in the second half of 1988 averaged $10,000 per month more than in the first half.

OA E

Source: Official Guide
Target question: What amount did Jean earn from the commission on her sales in the FIRST HALF of 1988 ?

Statement 1: In 1988 Jean's commission was 5 percent of the total amount of her sales.
We don't know her total sales amount in 1988, AND we don't know what happened in the FIRST HALF of 1988
Statement 1 is NOT SUFFICIENT

Statement 2: The amount of Jean's sales in the second half of 1988 averaged $10,000 per month more than in the first half.
We have no information regarding the COMMISSION she receives on sales.
Statement 2 is NOT SUFFICIENT

Statements 1 and 2 combined
There are several scenarios that satisfy BOTH statements. Here are two:
Case a: Jean's sales were $0 in the FIRST half of 1988, and $60,000 in the SECOND half of 1988. 5% of $0 = $0. So, the answer to the target question is Jean's commission was $0 in the FIRST half of 19888
Case b: Jean's sales were $60,000 in the FIRST half of 1988, and $120,000 in the SECOND half of 1988. 5% of $60,000 = $3,000. So, the answer to the target question is Jean's commission was $3000 in the FIRST half of 19888
Since we cannot answer the target question with certainty, the combined statements are NOT SUFFICIENT

Answer: E

Cheers,
Brent

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Brent Hanneson – Creator of GMATPrepNow.com
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