The price of lunch for 15 people was $207.00, including a 15 percent gratuity for service. What was the average price per person, EXCLUDING the gratuity?
(A) $11.73
(B) $12.00
(C) $13.80
(D) $14.00
(E) $15.87
OG Answer B
My Answer A.
15% of 207 is 31.05, and the total amount WITHOUT gratuity is 207-31.05 = 175.95
and the individual price per person is 175.95/15 = 11.73
Please explain what is wrong with the above method.
Ratios and Percentages
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- umasarath52
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We can plug in the answers, which represent the cost per person.umasarath52 wrote:The price of lunch for 15 people was $207.00, including a 15 percent gratuity for service. What was the average price per person, EXCLUDING the gratuity?
(A) $11.73
(B) $12.00
(C) $13.80
(D) $14.00
(E) $15.87
Given that the total cost is an INTEGER, the correct answer is almost certainly an integer itself.
Answer choice D is too great, since 15 people paying $14 each = 15*14 = 210 -- yields a value beyond the total cost of 207.
Answer choice B: $12 per person without gratuity
Total price for 15 people = 15*12 = 180.
Price + gratuity = 180 + .15(180) = 180+27 = 207.
Success!
The correct answer is B.
Algebraic approach:
Let x = the cost per person WITHOUT gratuity.
Cost for 15 people without gratuity = 15x.
Cost for 15 people with gratuity = 115% of the cost without gratuity = (115/100)(15x).
Since the total cost with gratuity is 207, we get:
(115/100)(15x) = 207
x = (207 * 100) / (115 * 15).
Here is one way to simplify:
Divide both 100 and 15 by 5:
(207 * 100) / (115 * 15)
(207 * 20) / (115 * 3).
Divide 3 into 207; divide both 20 and 115 by 5:
(207 * 20) / (115 * 3)
(69 * 4) / 23.
Divide 23 into 69:
(69 * 4) / 23
3 * 4
12.
The step in red implies that the gratuity is equal to 15% OF THE FINAL PRICE ($207).15% of 207 is 31.05, and the total amount WITHOUT gratuity is 207-31.05 = 175.95
and the individual price per person is 175.95/15 = 11.73
Please explain what is wrong with the above method.
Not so.
The gratuity is equal to 15% OF THE BASE PRICE ($180, as shown in my solution above).
Also:
ALWAYS VERIFY THAT YOUR ANSWER CHOICE MAKES SENSE.
If the base price per person = $11.73, then the gratuity per person = 15% of 11.73 = $1.7595.
A gratuity that includes $.0095 is not viable.
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Here's an algebraic approach:The price of lunch for 15 people was $207.00, including a 15 percent gratuity for service. What was the average price per person, EXCLUDING the gratuity?
(A) $11.73
(B) $12.00
(C) $13.80
(D) $14.00
(E) $15.87
Let x = the total BEFORE the gratuity.
A 15% gratuity = 0.15x
So, the TOTAL cost = x + 0.15x
In other words, the TOTAL cost = 1.15x
So, we can write 1.15x = 207
So, x = 207/1.15
NOTE: The GMAT often rewards people for using fractions rather than decimals. The reason for this is that most people are very uncomfortable working with fractions.
So......
207/1.15 = 207/(1 3/20)
= 207/(23/20)
= 207 x (20/23)
IMPORTANT: At this point, the calculation looks very hard. But first notice that (23)(10) = 230. In other words, 230 = the sum of ten 23's
Also notice that 207 is 23 less than 230
So, 207 = the sum of nine 23's
In other words 207 = (23)(9)
So, we have . . .
= (23)(9) x (20/23)
= 9 x 20 [the 23's cancel out]
= 180
Yes, these calculations look cumbersome, but that's only because I added a lot of extra information. In reality, students with strong fraction skills can perform most (if not all) of these calculations in their heads.
Since the total PRE-GRATUITY price = $180, the price PER PERSON = 180/15 = [spoiler]12 = B[/spoiler]
Cheers,
Brent
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Your reasoning is that, since $207 is 15% GREATER than the pre-tip total, then the pre-tip total must be 15% LESS than $207.umasarath52 wrote: 15% of 207 is 31.05, and the total amount WITHOUT gratuity is 207-31.05 = 175.95
and the individual price per person is 175.95/15 = 11.73
Please explain what is wrong with the above method.
This is a common misconception that goes something like this: If A is k percent greater than B, then B must be k percent less than A.
The truth of the matter is as follows: If A is k percent greater than B, then B is NOT k percent less than A.
I wrote an article about this misconception: https://www.gmatprepnow.com/articles/com ... 93-part-ii
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In our case, the cost of the food is x. When we add a 15% tip, we've got x + (15% of x), or 1.15x.
You've done it as 15% of the TOTAL BILL, but that leads to a pricier meal!
Here's a friendlier example. Suppose I buy a phone for $100, then sell it for 50% more than I paid. That means I sold it for $150, right? Of course.
But if we KNOW that I paid $150 for the phone, and work from that total, we'd take 50% of $150 and get $75, implying that I paid $75, then added $75 to the price ... clearly not the right answer!
You've done it as 15% of the TOTAL BILL, but that leads to a pricier meal!
Here's a friendlier example. Suppose I buy a phone for $100, then sell it for 50% more than I paid. That means I sold it for $150, right? Of course.
But if we KNOW that I paid $150 for the phone, and work from that total, we'd take 50% of $150 and get $75, implying that I paid $75, then added $75 to the price ... clearly not the right answer!