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The manager of a concert venue noted that...

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The manager of a concert venue noted that...

by BTGmoderatorLU » Sat Oct 28, 2017 6:05 pm
The manager of a concert venue noted that for every 100 admission tickets sold, the venue sells 12 compact discs at $15.00 each, 8 t-shirts at $20.00 each, and 5 concert posters at $12.00 each. What is the average (arithmetic mean) of these merchandise sales per ticket sold?

(A) $3.00
(B) $3.76
(C) $3.81
(D) $4.00
(E) $4.40

The OA is D.

I don't understand this PS question. Can any expert explain it for me, please? Thanks.
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by [email protected] » Sun Oct 29, 2017 9:36 am
Hi LUANDATO,

We're told that f or EVERY 100 admission tickets sold, the venue sells 12 compact discs at $15.00 each, 8 t-shirts at $20.00 each, and 5 concert posters at $12.00 each. We're asked for the average merchandise sales per ticket. To answer this question, we have to total up the revenue from sales and then divide by 100:

12($15) = $180
8($20) = $160
5($12) = $60
Total revenue = $400
Average per ticket = $400/100 = $4

Final Answer: D

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by Jeff@TargetTestPrep » Thu Dec 14, 2017 5:46 pm
LUANDATO wrote:The manager of a concert venue noted that for every 100 admission tickets sold, the venue sells 12 compact discs at $15.00 each, 8 t-shirts at $20.00 each, and 5 concert posters at $12.00 each. What is the average (arithmetic mean) of these merchandise sales per ticket sold?

(A) $3.00
(B) $3.76
(C) $3.81
(D) $4.00
(E) $4.40
We are given that for every 100 admission tickets sold, the venue sells 12 compact discs at $15.00 each, 8 t-shirts at $20.00 each, and 5 concert posters at $12.00 each.

We need to divide the total revenue from the merchandise sales by the total number of tickets sold, which is 100:

[(12 x 15) + (8 x 20) + (5 x 12)]/100

Let's combine the terms 12 x 15 and 5 x 12:

[(12 x 15) + (12 x 5) + (8 x 20)]/100

[12(15 + 5) + (8 x 20)]/100

[(12 x 20) + (8 x 20)]/100

Let's combine the terms 12 x 20 and 8 x 20:

[20(12 + 8)]/100

[20 x 20]/100 = 2 x 2 = 4

Answer: D

Jeffrey Miller
Head of GMAT Instruction
[email protected]

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