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OG2016 DS What was the revenue

This topic has 3 expert replies and 0 member replies
lionsshare Senior | Next Rank: 100 Posts
Joined
09 Aug 2017
Posted:
62 messages

OG2016 DS What was the revenue

Post Mon Aug 28, 2017 3:51 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    What was the revenue that a theater received from the sale of 400 tickets, some of which were sold at the full price and the remainder of which were sold at a reduced price?

    (1) The number of tickets sold at the full price was 1/4 of the total number of tickets sold.
    (2) The full price of a ticket was $25.

    OA: E

    Hello, Experts. Can you please share how to solve this problem.

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    Post Tue Aug 29, 2017 8:34 am
    If we want to know the total revenue that the theater received, we need to know:
    (# of full-price tickets)x(full-ticket price) + (# of reduced-price tickets)x(reduced-ticket price)

    I'll assign the following variables for clarity:
    number of full-price tickets = F
    price of each full-ticket = f
    number of reduced-price tickets = R
    price of each reduced-ticket = r
    Revenue = (F)(f) + (R)(r)

    In order to answer the question, we'd need values for each of these variables: F, f, R, and r.

    We're given the total # of tickets, so we know that F + R = 400. If we knew a proportion between F and R, we could infer the values. We would still need actual values for f and r.

    Target question: what are the values of F, f, R, and r?

    (1) The number of tickets sold at the full price was 1/4 of the total number of tickets sold.
    This allows us to infer that F = 100 and R = 300. We still don't know the prices of each ticket, so we don't know total revenue. Insufficient.

    (2) The full price of a ticket was $25.
    With this statement alone, we know that f = 25, but we do not know how many of each ticket was sold, or the price of reduced tickets. Insufficient.

    (1) & (2) together
    We know that F = 100, f = 25, and R = 300. However, we still don't know anything about the price of reduced tickets, so we don't know the total revenue. Insufficient.

    The answer is E.

    _________________


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    EdM in Mind, Brain, and Education
    Harvard Graduate School of Education


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    Post Tue Aug 29, 2017 10:21 pm
    lionsshare wrote:
    What was the revenue that a theater received from the sale of 400 tickets, some of which were sold at the full price and the remainder of which were sold at a reduced price?

    (1) The number of tickets sold at the full price was 1/4 of the total number of tickets sold.
    (2) The full price of a ticket was $25.

    OA: E

    Hello, Experts. Can you please share how to solve this problem.
    Say the number of tickets sold at full-price = a, thus the number of tickets sold at reduced price = 400 - a

    Say the full price = b and the price of the tickets sold at reduced price = c

    Total revenue = Revenue from the sale of tickets at full-price + Revenue from the sale of tickets sold at reduced price

    = ab + (400 - a)c

    If we get the value of a, b and c, we get the answer.

    Statement 1: The number of tickets sold at the full price was 1/4 of the total number of tickets sold.

    This gives 400 - a = 1/4 of 400 = 100

    Thus, a = 300.

    We do not yet know the values of b and c, we cannot get the value of Total revenue. Insufficient.

    Statement 2: The full price of a ticket was $25.

    => b = $25.

    We do not yet know the values of a and c, we cannot get the value of Total revenue. Insufficient.

    Statement 1 & 2:

    We still do not have the value of c, we cannot get the value of Total revenue. Insufficient.

    The correct answer: E

    Hope this helps!

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    Post Mon Oct 09, 2017 8:04 am
    Compare to a similar OG question posted here: http://www.beatthegmat.com/og2016-ds-what-was-the-total-t296245.html#797220

    It's worth noting that the GMAT often writes variations on the same prompt!

    _________________


    Ceilidh Erickson
    Manhattan Prep GMAT & GRE instructor
    EdM in Mind, Brain, and Education
    Harvard Graduate School of Education


    Manhattan Prep instructors all have 99th+ percentile scores and expert teaching experience.
    Sign up for a FREE TRIAL, and learn why we have the highest ratings in the GMAT industry!

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