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

Redeem

A project scheduled to be carried out over a single fiscal

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 7187
Joined: Thu Sep 07, 2017 4:43 pm
Followed by:23 members

A project scheduled to be carried out over a single fiscal

by BTGmoderatorDC » Fri Aug 09, 2019 4:09 pm

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

A project scheduled to be carried out over a single fiscal year has a budget of $12,600, divided into12 equal monthly allocations. At the end of the fourth month of that fiscal year, the total amount actually spent on the project was $4,580. By how much was the project over its budget?

(A) $380
(B) $540
(C) $1,050
(D) $1,380
(E) $1,430

OA A

Source: Official Guide
Top
Source: — Problem Solving |
Legendary Member
Posts: 2214
Joined: Fri Mar 02, 2018 2:22 pm
Followed by:5 members

edited:

by deloitte247 » Sat Aug 10, 2019 9:11 am
The total budget allocated for the year = $12,600
Total equal monthly allocation = 12 equal months
$$So,\ budget\ allocation\ per\ month=\frac{12,600}{12} = $1,050$$
$$Budget\ allocation\ for\ 4\ months=$1,050\cdot4 = $4,200$$
$$The\ difference=$4,580-$4,200=$380$$
Therefore, the project was over its projects by $380. Hence, the correct answer is option A.
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8086
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

by Scott@TargetTestPrep » Wed Aug 14, 2019 7:04 pm
BTGmoderatorDC wrote:A project scheduled to be carried out over a single fiscal year has a budget of $12,600, divided into12 equal monthly allocations. At the end of the fourth month of that fiscal year, the total amount actually spent on the project was $4,580. By how much was the project over its budget?

(A) $380
(B) $540
(C) $1,050
(D) $1,380
(E) $1,430

OA A

Source: Official Guide
We know that our yearly budget must be divided into 12 EQUAL monthly allocations, so we need to divide $12,600 by 12. This will give us the amount of each monthly allocation. We have:

$12,600/12 = $1,050

Thus, $1,050 should be spent PER MONTH on the project. Therefore, after 4 months, 4 x $1,050 = $4,200 should have been spent on the project.

However, we are told that $4,580 was actually spent, so the project was over budget by:

$4,580 - $4,200 = $380

Answer: A

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage
Top
Post new topic Post Reply
• Page 1 of 1