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by AndyB » Tue Nov 09, 2010 6:36 pm
Hi All,

Though this a simple problem I am a bit confused, Please help.

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..??
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by beat_gmat_09 » Tue Nov 09, 2010 6:49 pm
AndyB wrote:Hi All,

Though this a simple problem I am a bit confused, Please help.

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..??
Isn't it 207/15 ?
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by diebeatsthegmat » Tue Nov 09, 2010 7:04 pm
AndyB wrote:Hi All,

Though this a simple problem I am a bit confused, Please help.

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..??
suppose thr price for all 15 people together is x
x+0,15x ( tax)=207
1,15x=207 so x=1800
1800=15a ( a is price for each person)
a=120
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by Rahul@gurome » Tue Nov 09, 2010 7:41 pm
Let the total price excluding gratuity = x
x + 15% of x = 207
1.15x = 207
x = 180
Therefore, average price per person excluding gratuity = $180/15 = $12
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by AndyB » Tue Nov 09, 2010 8:16 pm
Hi,

Rahul answer is the right one.
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by AndyB » Tue Nov 09, 2010 8:20 pm
Hi Rahul.

Thanks for the answer, You are rite but I am confused because the question says

"The price of lunch for 15 people was $207.00 including a 15 percent gratuity for service"

So why is it wrong to consider the price for lunch excluding gratuity is 85% of $207.
Please could you clarify at this point.
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by Rahul@gurome » Tue Nov 09, 2010 8:40 pm
AndyB wrote:Hi Rahul.

Thanks for the answer, You are rite but I am confused because the question says

"The price of lunch for 15 people was $207.00 including a 15 percent gratuity for service"

So why is it wrong to consider the price for lunch excluding gratuity is 85% of $207.
Please could you clarify at this point.
It cannot be 85% of 207, it is nowhere mentioned in the questions that price for lunch excluding gratuity is this. We'll have to consider the average price per person excluding the gratuity to be any variable and then solve.
Rahul Lakhani
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Gurome, Inc.
https://www.GuroMe.com
On MBA sabbatical (at ISB) for 2011-12 - will stay active as time permits
1-800-566-4043 (USA)
+91-99201 32411 (India)
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by diebeatsthegmat » Tue Nov 09, 2010 8:45 pm
AndyB wrote:Hi,

Rahul answer is the right one.
yeah, i added more zero... my bad heheh
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by AndyB » Tue Nov 09, 2010 8:56 pm
Once Again, Thanks Rahul.
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by GMATGuruNY » Wed Nov 10, 2010 3:54 am
The price of lunch for 15 peoplewas $207.00 including a 15% gratuity for service. What was the average price per person, excluding gratuity?

a.11.73
b.12.00
c.13.80
d.14.00
e.15.87
We can plug in the answer choices, which represent the price per person without the gratuity.
Since the total cost of 207 is an integer, the correct answer is likely to be an integer, so we should start with answer choice B or D.

Answer choice B:
Price per person = 12
Total cost for 15 people without gratuity = 15*12 = 180
Gratuity = .15*180 = 27
Total cost with gratuity = 180+27 = 207. Success!

The correct answer is B.

Plugging in the answers removes any possible confusion. We know that the price per person has to be one of the answer choices; we just have to determine which answer choice yields a final cost of 207.
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