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Flash card question on FDP Connections

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patricefreling
 Post subject: Flash card question on FDP Connections
 Post Posted: Tue Sep 14, 2010 8:30 am 
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Students


Posts: 1
Regarding the flash card question:

Carla earns a base salary of 30,000 plus 10% commission on her total sales revenue exceeding 50,000. How much did she make on commission

1) If her sales rev. had been 25% higher, her commission would have been 20% higher.

I wrote the equations up and solved for c (commission) and r (sales revenue) for practice but I get a negative revenue of -200,000 which doesn't make much sense but works. Is there another answer that has a positive value for the sales revenue and if there isn't could you please explain why?

thanks
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gokul_nair1984
 Post subject: Re: Flash card question on FDP Connections
 Post Posted: Tue Sep 14, 2010 11:42 am 
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Students


Posts: 170
You are right...


The 2 equations can be set up as follows:
10C=R-50,000----(1)
12C=1.25R-50,000----(2)

From (1) and (2) we get,
R=8C.
Substituing this back in any one of the equations we get,
C=-25000 and R=-200,000.

This cannot be posssible as revenues and costs can never be negative...There is an error in the question. As far as Data Sufficiency is concerned it is sufficient, but the solution does not make sense.
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tim
 Post subject: Re: Flash card question on FDP Connections
 Post Posted: Mon Sep 20, 2010 7:57 pm 
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ManhattanGMAT Staff


Posts: 2242
Location: Southwest Airlines, seat 21C
thanks Gokul. yes, the problem is written incorrectly. thanks for pointing it out..

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Tim Sanders
Manhattan GMAT Instructor
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