A salesman's income consists of a commission and a base salary of $350 per week. Over the past 5 weeks, his weekly income totals have been $406, $413, $420, $436 and $395. What must his average (arithmetic mean) commission be per week over the next two weeks so that his average weekly income is $500 over the 7-week period?
A. $150 B. $245 C. $365 D. $715 E. $730
(C) We need to do this problem step-by-step.
First, we add up the total income amounts for the past 5 weeks: $406 + $413 + $420 + $436 + $395 = $2070.
To average $500 over 7 weeks, the salesman would need to earn: $500 × 7 = $3500.
Subtract $2070 from $3500 to determine how much he would need to earn, in total, over the next 2 weeks to average $500 for the 7 weeks: $3500 – $2070 = $1430.
Since he will earn $700 in base salary over the next two weeks, the commission he must earn in the next two weeks is: $1430 – $700 = $730.
This is an average of $730/2 = $365 per week for these two weeks.
The correct answer is choice (C). ----------
Question Statemtn does not clarify the amount for Salary. It misleads the reader to believe that Commission + Salary is $350 instead of the just the base salary of $350.
Users browsing this forum: No registered users and 1 guest
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot post attachments in this forum
GMAT(TM) and GMAT CAT (TM) are registered trademarks of the Graduate Management Admission Council(TM). The Graduate Management Admission Council(TM) does not endorse, nor is affiliated in any way with the owner or any content of this site.