BTGModeratorVI wrote: ↑Sun Sep 27, 2020 7:11 am
A certain movie star's salary for each film she makes consists of a fixed amount, along with a percentage of the gross revenue the film generates. In her last two roles, the star made $32 million on a film that grossed $100 million, and $24 million on a film that grossed $60 million. If the star wants to make at least $40 million on her next film, what is the minimum amount of gross revenue the film must generate?
A $110 million
B $120 million
C $130 million
D $140 million
E $150 million
Answer:
D
Source: Manhattan prep
Let F = the fixed amount the star receives for a movie
Let p = the percentage of the gross revenue the star receives for a movie
The star made $32 million on a film that grossed $100 million
So, we can write:
F + (p/100)(100) = 32 [we'll assume that 100 and 32 represent 100 million and 32 million]
The star made $24 million on a film that grossed $60 million
So, we can write:
F + (p/100)(60) = 24
We now have:
F + (p/100)(100) = 32
F + (p/100)(60) = 24
Subtract the bottom equation from the top equation to get: (p/100)(100) - (p/100)(60) = 8
Factor to get: (p/100)[100 - 60] = 8
Simplify to get: (p/100)[40] = 8
Multiply both sides by 100 to get: 40p = 800
Solve: p = 20
Now that we know the value of p, we can find the value of F
Take
F + (p/100)(100) = 32 and replace p with 20 to get: F + (20/100)(100) = 32
Simplify: F + 20 = 32
So, F = 12
So, the star receives 12 million (fixed) PLUS 20% of the gross revenue
If the star wants to make at least $40 million on her next film, what is the minimum amount of gross revenue the film must generate?
Let x = gross revenue the film must generate
We can write: 12 + 20% of x = 40
Rewrite as: 12 + 0.2x = 40
Subtract 12 from both sides: 0.2x = 28
Solve: x = 140 (million)
Answer: D
Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
