Can anyone please help me figure out how the answer to the first question is A and second question D?
Thanks!
Thanks!
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Source: Beat The GMAT — Problem Solving |
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Ceilidh Erickson
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
It's pretty easy, though.
For the first question,
Profit = Revenue - Expenses
= Revenue * 1,000€ - (# of professionals) * 3,500€
= 3,728*1,000€ - 110*3,500€
= 3,343 * 1,000€
= A
For the second question, I'd need to know whether the business is Type I or Type II (or both).
For the first question,
Profit = Revenue - Expenses
= Revenue * 1,000€ - (# of professionals) * 3,500€
= 3,728*1,000€ - 110*3,500€
= 3,343 * 1,000€
= A
For the second question, I'd need to know whether the business is Type I or Type II (or both).
Matt -
I understand how the answer is A for question 1, but I have not been able to figure out how the answer is D for question 2. I keep getting C instead.
Could you help?
Thanks!
I understand how the answer is A for question 1, but I have not been able to figure out how the answer is D for question 2. I keep getting C instead.
Could you help?
Thanks!
Matt@VeritasPrep wrote:It's pretty easy, though.
For the first question,
Profit = Revenue - Expenses
= Revenue * 1,000€ - (# of professionals) * 3,500€
= 3,728*1,000€ - 110*3,500€
= 3,343 * 1,000€
= A
For the second question, I'd need to know whether the business is Type I or Type II (or both).
For company A:
Profit = 6,108,000-(281*3500) = 5,124,500
Type I investment is 50,000 since the growth between year X and year X-1 is 18%
Type II investment is 500 euro for professionals from 100 to 150 and 1,000 euro for professionals above 150.
so Investment type II is (50*500)+(131*1000) = 156,000
Money to be split = 5,124,500 - 50,000 - 156,000 = 4,918,500
For each partner = 4,918,500/34 = 144,661 = 144.66
Personally I think Type II is poorly written. The first sentence reads "no investment will be made if the number of professionals in the company is less than 100" which makes you think each condition is separate depending on the number of professionals in the company
Profit = 6,108,000-(281*3500) = 5,124,500
Type I investment is 50,000 since the growth between year X and year X-1 is 18%
Type II investment is 500 euro for professionals from 100 to 150 and 1,000 euro for professionals above 150.
so Investment type II is (50*500)+(131*1000) = 156,000
Money to be split = 5,124,500 - 50,000 - 156,000 = 4,918,500
For each partner = 4,918,500/34 = 144,661 = 144.66
Personally I think Type II is poorly written. The first sentence reads "no investment will be made if the number of professionals in the company is less than 100" which makes you think each condition is separate depending on the number of professionals in the company
Eek, somehow I never saw this message! Profuse apologies!mserje wrote:Matt -
I understand how the answer is A for question 1, but I have not been able to figure out how the answer is D for question 2. I keep getting C instead.
Could you help?
Thanks!
The only way I can get to D is by assuming:
i) The company makes both Type I and Type II investments
ii) Expenses per person only are paid per professional, not also per partner
iii) "between 100 and 150" means 100 ≤ x ≤ 150 (which is terrible)
Assuming all that, we have
A's growth = 6.108 / 5.172 ≈ 1.18%, so that merits a 50,000€ investment.
A has 281 professionals, so we invest another 51*500€ + 131*1000€ => 156,500€.
We know Profits = Revenue - Expenses = 6,108,000€ - 3,500*281€ = 5,124,500€
We know the money to be split = Profits - Investment = 5,124,500€ - (50,000 + 156,000)€ = 4,918,500
We're splitting that among 34 partners, so 4,918,500€/34 ≈ 144,661€
