• Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • examPAL
    Most awarded test prep in the world
    Now free for 30 days

    Available with Beat the GMAT members only code

    MORE DETAILS
    examPAL
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors

Pie chart

This topic has 2 expert replies and 1 member reply
talaangoshtari Master | Next Rank: 500 Posts
Joined
21 May 2014
Posted:
154 messages
Followed by:
1 members
Upvotes:
8

Pie chart

Post Thu May 07, 2015 8:39 pm
Royalty on the book is less than the printing cost by:

A. 5%
B. 33 1/5%
C. 20%
D. 25%
Attachments

This post contains an attachment. You must be logged in to download/view this file. Please login or register as a user.

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

Post Fri May 08, 2015 3:11 pm
Hi talaangoshtari,

Based on the information in the pie chart, we do NOT know the exact price of any of the pieces - we only know the PERCENT of the TOTAL EXPENDITURES that each piece represents. Since we don't know the total expenditures, we have no way of calculating "how much less" one piece is compared to another (this is why I mentioned in my prior post that the question was 'poorly-phrased').

For example,

IF....the total expenditures = $100...
Printing = $20
Royalty = $15
Royalty is 20-15 = $5 less

IF....the total expenditures = $200...
Printing = $40
Royalty = $30
Royalty is 40-30 = $10 less

As the total expenditures change, the 'absolute' difference in Printing and Royalty changes.

If the question had asked "what is the difference in the percent of expenses devoted to Printing and the percent of expenses devoted to Royalty?", then the answer would be 5%, but that's NOT how this question was written.

GMAT assassins aren't born, they're made,
Rich

_________________
Contact Rich at Rich.C@empowergmat.com

  • +1 Upvote Post
  • Quote
  • Flag
talaangoshtari Master | Next Rank: 500 Posts
Joined
21 May 2014
Posted:
154 messages
Followed by:
1 members
Upvotes:
8
Post Fri May 08, 2015 9:10 am
Hi, thank you for your reply. Would you please explain why A is wrong?

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

Post Fri May 08, 2015 9:01 am
Hi talaangoshtari,

This question is poorly-phrased, but the "intent" of it is probably to test you on your knowledge of "Percentage Change" (which is a specific formula that you WILL need to know for Test Day).

Percentage Change = (difference)/(original) = (New - Old)/(Old)

From the pie chart, we can see that:
Royalty = 15% of the total cost
Printing = 20% of the total cost

Comparing those two percents (and using the percentage change formula) gives us....

(15 - 20)/(20) = -5/20 = -1/4 = 25% less

Final Answer: D

GMAT assassins aren't born, they're made,
Rich

_________________
Contact Rich at Rich.C@empowergmat.com

  • +1 Upvote Post
  • Quote
  • Flag

Best Conversation Starters

1 lheiannie07 108 topics
2 ardz24 68 topics
3 Roland2rule 65 topics
4 LUANDATO 53 topics
5 VJesus12 52 topics
See More Top Beat The GMAT Members...

Most Active Experts

1 image description GMATGuruNY

The Princeton Review Teacher

146 posts
2 image description Jeff@TargetTestPrep

Target Test Prep

119 posts
3 image description Rich.C@EMPOWERgma...

EMPOWERgmat

114 posts
4 image description Scott@TargetTestPrep

Target Test Prep

101 posts
5 image description EconomistGMATTutor

The Economist GMAT Tutor

85 posts
See More Top Beat The GMAT Experts