From the monthly planned marketing budget of a company

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VJesus12: Legendary Member; Posts: 2276; Joined: Sat Oct 14, 2017 6:10 amFollowed by: 3 members

by VJesus12 » Mon Jun 17, 2019 3:21 am

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From the monthly planned marketing budget of a company, only 80% was utilized. From the allocated budget, for marketing, 50% was spent on advertisement, 40% of the remaining budget was spent on new business expansion and the remaining $3600 was spent on adhoc expenses. What was the total amount of planned monthly budget?

A. $10,000
B. $12,000
C. $15,000
D. $17,500
E. $20,000

[spoiler]OA=C[/spoiler]

Source: e-GMAT

Source: Beat The GMAT — Problem Solving | Mon Jun 17, 2019 3:21 am

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8246; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Fri Jun 21, 2019 6:45 pm

VJesus12 wrote:From the monthly planned marketing budget of a company, only 80% was utilized. From the allocated budget, for marketing, 50% was spent on advertisement, 40% of the remaining budget was spent on new business expansion and the remaining $3600 was spent on adhoc expenses. What was the total amount of planned monthly budget?

A. $10,000
B. $12,000
C. $15,000
D. $17,500
E. $20,000

[spoiler]OA=C[/spoiler]

Source: e-GMAT

Let b = the allocated (or utilized) budget. We can create the equation:

0.5b + 0.4(0.5b) + 3600 = b

0.7b + 3600 = b

3600 = 0.3b

12,000 = b

Since this is 80% of the planned budget, the planned budget is 12,000/0.8 = $15,000.

Answer: C

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swerve: Legendary Member; Posts: 2604; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

by swerve » Sun Jun 23, 2019 9:22 am

Let the allocated budget be $X$.

$50$% spent on advertisement. Remaining is $0.5X$
$40$% of the remaining on new business expansion $0.5X*0.4 = 0.2X$. Remaining is $0.3X = 3600 = X = 12,000$.

Given that only $80$% was utilized.
Utilized budget $= 12,000$.
Planned budget $= 15,000$.

Therefore, __C__ is the correct option.

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