Official Guide Explanation:
Problem Solving #114

 

 

Background

This is just one of hundreds of free explanations I've created to the quantitative questions in The Official Guide for GMAT Quantitative Review (2nd ed.). Click the links on the question number, difficulty level, and categories to find explanations for other problems.

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Solution and Metadata

Question: 114
Page: 76
Difficulty: 5 (Moderate)
Category 1: Algebra > Linear Equations-One Unk >
Category 2: Word Problems > Other >
Category 3: Arithmetic > Percents > other

Explanation: Salesperson A's compensation can be written algebraically as follows, where s stands for sales: A = 360 + (0.06)(s - 1000). Salesperson B's compensation is much simpler: B = (0.08)s. To find the value of s when the salespeople earn the same amount, set A and B equal to each other and solve:

360 + (0.06)(s - 1000) = (0.08)s

360 + 0.06s - 60 = 0.08s

300 = 0.02s

s = 300(50) = 15,000, choice (C).

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