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# $686,000 in bonus money is to be divided among 6 employees. No employe  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Manager Joined: 26 Apr 2010 Posts: 121 Concentration: Strategy, Entrepreneurship Schools: Fuqua '14 (M) Followers: 2 Kudos [?]: 72 [0], given: 54$686,000 in bonus money is to be divided among 6 employees. No employe [#permalink]  26 Nov 2010, 13:52
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38% (00:00) correct 63% (03:07) wrong based on 8 sessions
Source: Knewton

$686,000 in bonus money is to be divided among 6 employees. No employee is to receive a bonus more than 20% greater than the bonus received by any other employee. What is the minimum possible bonus that an employee can receive? (A)$96,000
(B) $97,000 (C)$98,000
(D) $99,000 (E)$100,000
[Reveal] Spoiler: OA

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Manager
Joined: 02 Apr 2010
Posts: 103
Followers: 5

Kudos [?]: 108 [0], given: 18

Re: $686,000 in bonus money is to be divided among 6 employees. No employe [#permalink] 26 Nov 2010, 14:03 The question stem states that the difference between the minimum and maximum bonus may not exceed 20%. To determine the minimum possible bonus for an employee you have to assume that the other 5 employees obtain the maximum possible bonus. If x denotes the minimum possible bonus and 1.2x denotes the maximum possible bonus you can set up the equation as follows: x + 5*1.2x =$686,000 => 7x = $686,000 => x =$98'000

Hence, solution c is correct.
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Joined: 16 Oct 2010
Posts: 6216
Location: Pune, India
Followers: 1675

Kudos [?]: 9588 [0], given: 196

Re: $686,000 in bonus money is to be divided among 6 employees. No employe [#permalink] 26 Nov 2010, 19:15 Expert's post Stanford2012 has explained the solution perfectly. The only thing I want to highlight here is the concept. Let's say you have a fixed sum of$100 that needs to be distributed among 5 people. If you want to maximize one person's share, you need to give everyone else the minimum that you can. e.g. the question says each person must receive at least $10, what is the maximum one person can receive? Since you want to maximize one person's share, you should give everyone else the minimum possible i.e.$ 10. You give $10 to each of the other 4 people and are left with$60, the maximum that you can give to one guy.
Similarly, if you want to minimize someone's share, you should give everyone else the maximum possible.

In your question here, a fixed amount has to be distributed among 6 people and one person's minimum share needs to be found. A person will receive minimum (say $x) , when everyone else gets the maximum that they can (that will be$6x/5).
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Re:$686,000 in bonus money is to be divided among 6 employees. No employe   [#permalink] 26 Nov 2010, 19:15
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