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You can rent DVDs at a local video store for $5.00 per movie

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by GMATinsight » Mon Oct 12, 2015 10:55 pm
You can rent DVDs at a local video store for $5.00 per movie without a membership. However, if you purchase a membership for $7.00 per month, you can rent DVDs for $2.00 a piece. What is the minimum amount of DVDs you would have to rent to make it worth it to purchase the membership.

(A) 1
(B) 2
(C) 3
(D) 4
(E) 5

Answer: Option C
"GMATinsight"Bhoopendra Singh & Sushma Jha
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User avatar
Legendary Member
Posts: 1100
Joined: Sat May 10, 2014 11:34 pmFollowed by: 24 members
Location: New Delhi, India
Thanked: 205 times

by GMATinsight » Mon Oct 12, 2015 10:56 pm
GMATinsight wrote:You can rent DVDs at a local video store for $5.00 per movie without a membership. However, if you purchase a membership for $7.00 per month, you can rent DVDs for $2.00 a piece. What is the minimum amount of DVDs you would have to rent to make it worth it to purchase the membership.

(A) 1
(B) 2
(C) 3
(D) 4
(E) 5

Answer: Option C
Lets assume that Break-even is achieved on renting x DVD

i.e. Price to be paid without membership for renting x DVDs = 5x
i.e. Price to be paid WITH membership for renting x DVDs = 7+2x

now 7+2x < 5x
i.e. 3x > 7
i.e. x > 2.3
Since x must be an Integer so
i.e. [m]x_{min} = 3[/m]


Answer: option C
"GMATinsight"Bhoopendra Singh & Sushma Jha
Most Comprehensive and Affordable Video Course 2000+ CONCEPT Videos and Video Solutions
Whatsapp/Mobile: +91-9999687183 l [email protected]
Contact for One-on-One FREE ONLINE DEMO Class Call/e-mail
Most Efficient and affordable One-On-One Private tutoring fee - US$40-50 per hour
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