If an organization were to sell n tickets for a theater production, the total revenue from ticket sales would be 20 percent greater than the total costs of the production. If the organization actually sold all but 5 percent of the n tickets, the total revenue from ticket sales was what percent greater than the total costs of the production?
A. 4%
B. 10%
C. 14%
D. 15%
E. 18%
The OA is C.
Let n = 100; Price of each ticket = 12
Cost = (Revenue)/1.2 = (100*12)/1.2 = 1000
Suppose the organization sold all but 5% of tickets i.e. 95 tickets, then revenue = 95*12
Percentage required = ((95*12 - 1000)/1000)*100 = (1140 - 1000)/10 = 14%. Option C.
Has anyone another strategic approach to solve this PS question? Regards!
If an organization were to sell n tickets for a theater
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Hi All,
We're told that if an organization were to sell N tickets for a theater production, then the total revenue from ticket sales would be 20 percent GREATER than the total costs of the production. We're asked if the organization actually sold all BUT 5 percent of the N tickets, then the total revenue from ticket sales would be what percent greater than the total costs of the production. This question can be solved by TESTing VALUES.
IF...
N=100 tickets
Product Cost = $1000
Revenue from ALL tickets sold = $1000 + (.2)($1000) = $1000 + $200 = $1200
1 ticket costs $1200/100 = $12
If we sold all but 5% of the tickets, then those 5 tickets would account for (5)($12) and the revenue in this case would be $1200 - $60 = $1140
Thus, this revenue would be ($1140 - $1000)/($1000) = 140/1000 = 14% greater than total costs.
Final Answer: C
GMAT assassins aren't born, they're made,
Rich
We're told that if an organization were to sell N tickets for a theater production, then the total revenue from ticket sales would be 20 percent GREATER than the total costs of the production. We're asked if the organization actually sold all BUT 5 percent of the N tickets, then the total revenue from ticket sales would be what percent greater than the total costs of the production. This question can be solved by TESTing VALUES.
IF...
N=100 tickets
Product Cost = $1000
Revenue from ALL tickets sold = $1000 + (.2)($1000) = $1000 + $200 = $1200
1 ticket costs $1200/100 = $12
If we sold all but 5% of the tickets, then those 5 tickets would account for (5)($12) and the revenue in this case would be $1200 - $60 = $1140
Thus, this revenue would be ($1140 - $1000)/($1000) = 140/1000 = 14% greater than total costs.
Final Answer: C
GMAT assassins aren't born, they're made,
Rich
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The number of tickets is irrelevant.AAPL wrote:If an organization were to sell n tickets for a theater production, the total revenue from ticket sales would be 20 percent greater than the total costs of the production. If the organization actually sold all but 5 percent of the n tickets, the total revenue from ticket sales was what percent greater than the total costs of the production?
A. 4%
B. 10%
C. 14%
D. 15%
E. 18%
If 5% fewer tickets are sold, then the revenue decreases by 5%.
Let the cost of the production = 100.
If all the tickets are sold, the revenue is 20% more than the cost of the production:
100 + (20% of 100) = 100 + 20 = 120.
If 5% fewer tickets are sold, the revenue decreases by 5%:
120 - (5% of 120) = 120 - 6 = 114.
The resulting revenue in blue -- 114 -- is 14% greater than the $100 cost.
The correct answer is C.
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If we let c = the total cost of production, then 1.2c = the revenue from selling n tickets. Another way of saying this is that selling n tickets results in 1.2c. However, since the organization sold only 95% of the n tickets, the actual total revenue is 0.95(1.2c) = 1.14c.AAPL wrote:If an organization were to sell n tickets for a theater production, the total revenue from ticket sales would be 20 percent greater than the total costs of the production. If the organization actually sold all but 5 percent of the n tickets, the total revenue from ticket sales was what percent greater than the total costs of the production?
A. 4%
B. 10%
C. 14%
D. 15%
E. 18%
Since the total revenue from selling 95% of the tickets is 1.14c, this means that the total revenue is 14% greater than the cost of production.
Answer: C
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