BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

In order to increase revenues, a cell-phone company has deci

Expert replies
by BTGmoderatorAT » Sun Nov 12, 2017 3:12 pm
In order to increase revenues, a cell-phone company has decided to change its fee structure.Instead of charging a flat rate of $20 per month and $0.50 for every minute over 200 minutes, the company will now charge $50 per month for unlimited usage.

Which of the following is a consideration that, if true, suggests that the new plan will not actually increase the company's revenues?

A) A rival-company , which charges no start-up fee , offers an unlimited calling plan for $40 per month.
B) Two-thirds of the company's customers use less than 500 minutes per month.
C) Studies have shown that customers using unlimited calling plans will increase their monthly usage of minutes by over 50 percent.
D) One-fifth of the company's customers use in excess of 1,000 minutes per month.
E) In recent months the company has received several complaints of insufficient signal strength and poor customer service.

I'm confused between B & D. Can any experts help?
Join the discussion
Source: — Critical Reasoning |

by EconomistGMATTutor » Wed Nov 15, 2017 6:50 am
The conclusion: The new plan will increase revenue.
The evidence: Instead of charging a flat rate of $20 per month and $0.50 for every minute over 200 minutes, the company will now charge $50 per month for unlimited usage.

We are asked to weaken the conclusion -- to show that the new plan will NOT increase revenue.

You asked about choice B and D. The correct choice is D. If one-fifth of the customers use in excess of 1000 minutes, the company would make more money charging them by the minute. For instance, if these customers used exactly 1000 minutes, the old plan would have charged them $0.50 for 800 of those minutes. That's $400 + the flat rate of $20. That's considerably more than the $50 for unlimited usage, more than enough to make up for little usage by the other four-fifths who use fewer minutes.

Choice B goes in the opposite direction. If more than half of the customers use less than 500 minutes each month, this suggests that it might be more profitable to charge them $50 for unlimited usage. Perhaps they use 200 minutes, in which case they would only be charged $20 on the old plan.


I'm available if you need any follow-up.
GMAT Prep From The Economist
We offer 70+ point score improvement money back guarantee.
Our average student improves 98 points.

Image
Join the discussion