gmatprep - An auction house charges a commission

by **pchaichan** Wed Apr 23, 2008 3:10 am

An auction house charges a commission of 15 percent on the first $50,000 of the sale price of an item, plus 10 percent on the amount of the sale price in excess of $50,000. What was the sale price of a painting for which the auction house charged a total commisson of $24,000?

a. 115,000
b. 160,000
c. 215,000
d. 240,000
e. 365,000

Answer is c: - I can't figure this one out, any help is appreciated. thank you in advance.

by **Sudhan** Wed Apr 23, 2008 5:51 am

(x-50000)*.10+ 50000*15=24000
0.10x-5000+7500=24000
0.10x=21500
x= 21500/0.10= 215000

Hence C

by **rfernandez** Thu Apr 24, 2008 3:05 pm

Nice work, Sudhan!