The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which

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M7MBA: Moderator; Posts: 2058; Joined: Sun Oct 29, 2017 4:24 amFollowed by: 5 members; Thanked: 1 times

by M7MBA » Thu Aug 27, 2020 1:21 am

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The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which those preparers can complete a tax return in an 8-hour workday. If both preparers decide to work 12 hours on a certain day, how much more gross income is made by tax preparer $A$ than by tax preparer $B?$

a) $120
b) $180
c) $240
d) $360
e) $540

Answer: B

Source: Veritas Prep

Source: Beat The GMAT — Problem Solving | Thu Aug 27, 2020 1:21 am

swerve: Legendary Member; Posts: 2604; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

Re: The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which

by swerve » Thu Aug 27, 2020 4:14 am

M7MBA wrote: ↑
Thu Aug 27, 2020 1:21 am
The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which those preparers can complete a tax return in an 8-hour workday. If both preparers decide to work 12 hours on a certain day, how much more gross income is made by tax preparer $A$ than by tax preparer $B?$

a) $120
b) $180
c) $240
d) $360
e) $540

Answer: B

Source: Veritas Prep

Here the table,

Tax Preparer.PNG

Number of returns prepared by $A/hr = 16/8 = 2$, number of returns in $12 hrs = 12\cdot 2 = 24$

Income from $24 returns = 24\cdot \$75 = \$1800$

Number of returns prepared by $B/hr = 12/8 = 1.5$, number of returns in $12 hrs = 12\cdot 1.5 = 18$

Income from $18 returns = 18\cdot \$90 = \$1620$

Difference $= \$1800-\$1620 = \$180$

Therefore, B

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