Matt gets a $1,000 commission on a big sale.
Matt gets a $1,000 commission on a big sale. This commission alone raises his average commission by $150. If Matt's new average commission is $700, how many sales has Matt made?
Answer/Solution
3
Steps/Work
Let, Average Commission = x
No. of items sold = y
Total Commission = xy
New Commission = xy+1000
New Average = (xy+1000) / (y+1) = 150+x
i.e. (xy+1000) = (y+1)* (150+x)
i.e. (xy+1000) = (xy+x+150y+150)
i.e. (850) = (x+150y)
New Commission = 700 = 150+x
i.e. x=550
i.e. y = 2
New Sales = y+1 = 3
Answer: option A
No. of items sold = y
Total Commission = xy
New Commission = xy+1000
New Average = (xy+1000) / (y+1) = 150+x
i.e. (xy+1000) = (y+1)* (150+x)
i.e. (xy+1000) = (xy+x+150y+150)
i.e. (850) = (x+150y)
New Commission = 700 = 150+x
i.e. x=550
i.e. y = 2
New Sales = y+1 = 3
Answer: option A