Pat’s Bonus Compensation

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What amount did Pat receive in bonus compensation in 2010?

(1) Her total bonus compensation in 2010 was 20 percent of her annual regular salary earnings.

(2) Halfway through 2010, Pat received a raise to her annual salary of 8%.

Review: Pat's Bonus Compensation




Explanation

This question gives us nothing and asks what Pat's bonus was at a given time. We evaluate the statements separately first. Statement (1) gives her bonus in terms of her earnings, but we don't know her earnings. Insufficient. Statement (2) describes a shift in Pat's earnings, but we don't know the base rate of her earnings and Statement (2) doesn't tie it back in any way to Pat's bonus. Insufficient. Putting the statements together, we still don't know Pat's annual salary before or after the raise, which is the only reference point we have to the bonus. So the statements together are insufficient.

The correct answer is (E).


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