• 7 CATs FREE!
    If you earn 100 Forum Points

    Engage in the Beat The GMAT forums to earn
    100 points for $49 worth of Veritas practice GMATs FREE

    Veritas Prep
    VERITAS PRACTICE GMAT EXAMS
    Earn 10 Points Per Post
    Earn 10 Points Per Thanks
    Earn 10 Points Per Upvote
    REDEEM NOW

A certain company has budgeted $1,440 for entertaiment expenses for the year, divided into 12...

This topic has expert replies
Moderator
Posts: 1401
Joined: 29 Oct 2017
Followed by:2 members
Manhattan Prep

A certain company has budgeted $1,440 for entertainment expenses for the year, divided into 12 equal monthly allocations. If by the end of the third month, the total amount spent on entertainment was $300, how much was the company under budget or over budget?

A. $60 under budget
B. $30 under budget
C. $30 over budget
D. $60 over budget
E. $180 over budget

OA A

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 2583
Joined: 02 Jun 2008
Location: Toronto
Thanked: 1090 times
Followed by:355 members
GMAT Score:780
Dividing $1440 by 12, they budgeted $120 per month, so $360 for three months. If they spent $300, they were $60 under budget.
If you are looking for online GMAT math tutoring, or if you are interested in buying my advanced Quant books and problem sets, please contact me at ianstewartgmat at gmail.com

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 5139
Joined: 25 Apr 2015
Location: Los Angeles, CA
Thanked: 43 times
Followed by:23 members
AAPL wrote:
Wed Feb 12, 2020 3:12 am
Manhattan Prep

A certain company has budgeted $1,440 for entertainment expenses for the year, divided into 12 equal monthly allocations. If by the end of the third month, the total amount spent on entertainment was $300, how much was the company under budget or over budget?

A. $60 under budget
B. $30 under budget
C. $30 over budget
D. $60 over budget
E. $180 over budget

OA A
The budget for 3 months of entertainment expenses is 1,440/12 x 3 = 120 x 3 = $360. Since the actual spending for the 3 months was $300, the company was $60 under budget.

Answer: A

Scott Woodbury-Stewart
Founder and CEO
scott@targettestprep.com

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage