yezz wrote:
Mrs. K is paid at a reduced rate for contracts completed late, and the contract prices may vary. Her compensation for the first two late contracts in any month is reduced by 10%, and her compensation for any subsequent late contracts in the same month is reduced by 15%. If Mrs. K completed three contracts late, in the same month, was her total compensation for those three contracts reduced by more than 11%?
(1) Without any reduction, she would have received $550 for the last of the three late contracts, and at least $1200 for each of the others.
(2) Without any reduction, she would have received $1500 for the first of the three late contracts.[/b]
(1) Without any reduction, she would have received $550 for the last of the three late contracts, and at least $1200 for each of the others.
(2) Without any reduction, she would have received $1500 for the first of the three late contracts.[/b]
The wordings sure are confusing
But yea the answer is [A] For the question, Let x1, x2 and x3 be the contract rates for the 1st, 2nd and 3rd contracts respectively.
Now the reduced rates would be as per the question, 90x1/100 , 90x2/100 and 85x3/100. *This calculation is unnecessary but just love writing it down! Clarity
*Now to calculate the total reduction of her compensation for all the three contracts, we would need clearly x1+x2+x3 and if possible the individual values.
Statement 1 states that "Without any reduction, she would have received $550 for the last of the three late contracts, and at least $1200 for each of the others."
Hence, without any reduction, 550$ would have been the third compensation, i.e. x3 = 550
and finally, 1200$ for the other two, i.e. x1 = x2 = 1200
Since all the values are given, the percentage change can be calculated! Sufficient!
Statement 2 just provides the value of x1 = 1500, but does not talk about x2 or x3. Hence is insufficient.
Hope my answer is accurate!
Regards,
Arpan