The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which those preparers can complete tax return in an 8-hour workday. If both preparers decide to work 12 hours on a certain day, how much more gross income is made by tax preparer A than by tax preparer B?
a) $120
b) $180
c) $240
d) $360
e) $540
Please assist with above problem.
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The table above gives the prices for tax returns prepared by
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alanforde800Maximus
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Hi alanforde800Maximus,
Although the prompt does not state it, we're meant to assume a constant rate for all activities (meaning that increasing one's work time by 50% leads to an equivalent 50% increase in output). Since each worker is increasing his/her work time from 8 hours to 12 hours (which is an increase of 50%), then we're meant to assume that the number of tax returns prepared will also increase by 50%. At this point, we can do the math in a couple of different ways - you can either calculate the different now and then increase it by 50% or increase both results by 50% and then compare the difference. Thus the two workers would earn a total of...
Tax Preparer A: (24 tax returns)($75 each) = $1800
Tax Preparer B: (18 tax returns)($90 each) = $1620
The first preparer will make $1800 - $1620 = $180 more than the second preparer.
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
Although the prompt does not state it, we're meant to assume a constant rate for all activities (meaning that increasing one's work time by 50% leads to an equivalent 50% increase in output). Since each worker is increasing his/her work time from 8 hours to 12 hours (which is an increase of 50%), then we're meant to assume that the number of tax returns prepared will also increase by 50%. At this point, we can do the math in a couple of different ways - you can either calculate the different now and then increase it by 50% or increase both results by 50% and then compare the difference. Thus the two workers would earn a total of...
Tax Preparer A: (24 tax returns)($75 each) = $1800
Tax Preparer B: (18 tax returns)($90 each) = $1620
The first preparer will make $1800 - $1620 = $180 more than the second preparer.
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
