DSQ: Calculating percents - GMAT Quantitative

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Question

Jared, a jewelry salesman, makes a 10% commission on the selling price of all the jewelry he sells. Last month, he earned $4,000 in commission. What is the total selling price of the jewelry he sold this month?

1. His sales this month were 25% more than his sales last month.

2. He earned $5,000 in commission this month.

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Answer

Each statement has enough information to calculate the answer.

Using statement 1, we know that he sold 25% more than last month. Given in the question, last month he earned $4,000. If $4,000 is 10% of the total price of his jewelry sold last month, we do some math (below) to find he sold $40,000 worth of jewelry. Let be the total price of jewelry sold last month. Then,

so

Increasing that by 25% we see that

NOTE: when multiplying the percents, make sure you use the decimal values.

Using statement 2, we know that we can just calculate the total selling price of the jewelry he sold this month based on the commission percentage. So, if we let equal the total price of jewelry sold this month, we get

or

Therefore we see we can use either statement individually to find what we are looking for.

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