Find all School-related info fast with the new School-Specific MBA Forum
Learn more about the recent changes... close

It is currently 19 May 2013, 17:40
Customize  |  Hide

Search
Register
New posts
Unanswered

A certain movie star's salary for each film she makes consis

  Question banks Downloads My Bookmarks Reviews  
  Oldest Best Reply
Search for:
 
Print view
First unread post
Author Message
TAGS:
Moderator
Moderator
User avatar
Status: battlecruiser, operational...
Joined: 25 Apr 2010
Posts: 983
Location: Virginia, USA
Schools: VCU MS Finance 2012
WE 1: Best Buy Supervisor
WE 2: Wealth Management Intern
Followers: 10

Kudos [?]: 80 [0], given: 70

GMAT Tests User
A certain movie star's salary for each film she makes consis [#permalink] New post 09 Aug 2010, 21:18
00:00

Question Stats:

87% (02:07) correct 12% (01:08) wrong based on 2 sessions
A certain movie star's salary for each film she makes consists of a fixed amount, along with a percentage of the gross revenue the film generates. In her last two roles, the star made $32 million on a film that grossed $100 million, and $24 million on a film that grossed $60 million. If the star wants to make at least $40 million on her next film, what is the minimum amount of gross revenue the film must generate?

A $110 million
B $120 million
C $130 million
D $140 million
E $150 million
[Reveal] Spoiler: OA

_________________

Find out what's new at GMAT Club - latest features and updates

1 KUDOS received
GMAT Club team member
User avatar
Joined: 02 Sep 2009
Posts: 11516
Followers: 1791

Kudos [?]: 9536 [1] , given: 826

GMAT Tests User CAT Tests
Top Member of the Month
Re: Movie Salary [#permalink] New post 10 Aug 2010, 01:59
1
This post received
KUDOS
vwjetty wrote:
A certain movie star's salary for each film she makes consists of a fixed amount, along with a percentage of the gross revenue the film generates. In her last two roles, the star made $32 million on a film that grossed $100 million, and $24 million on a film that grossed $60 million. If the star wants to make at least $40 million on her next film, what is the minimum amount of gross revenue the film must generate?

A $110 million
B $120 million
C $130 million
D $140 million
E $150 million

can't really figure this out. any help would be great thanks!


Basically we have following linear relationship: Salary={Percent}*{Revenue from the film}+{Fixed amount} --> S=PR+F (the same as y=ax+b).

Given: 32=100P+F and 24=60P+F. Question: if S\geq{40} then R_{min}=?

Solving: 32=100P+F and 24=60P+F --> subtract 2 from 1 --> 8=40P --> P=0.2 (so she gets 20% of the revenue) --> F=12, so fixed amount is $12 million. So the formula for calculating star's salary is: S=0.2R+12.

We want S=0.2R+12\geq{40} --> R\geq{140} --> so R_{min}=140, if the star wants to make at least $40 million on her next film, the film must generate minimum $140 million of gross revenue.

Answer: D.

Hope it's clear.
_________________

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. NEW!!!

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set. NEW!!!


What are GMAT Club Tests?
25 extra-hard Quant Tests

Find out what's new at GMAT Club - latest features and updates

3 KUDOS received
Intern
Intern
Joined: 19 Sep 2009
Posts: 6
Followers: 0

Kudos [?]: 3 [3] , given: 4

Re: Movie Salary [#permalink] New post 10 Aug 2010, 02:04
3
This post received
KUDOS
answer is D.
Let x be fixed income
Let y be the % of variable income.
x+(y/100)*100 = 32
x+(y/100)*60 = 24
so we get x = 12 and y = 20%
then
x+0.2(required revenue)= 40. we get required revenue = 140 million dollars
1 KUDOS received
Manager
Manager
User avatar
Joined: 19 Jul 2009
Posts: 55
Location: baltimore, md
Schools: kellogg, booth, stern, ann arbor
Followers: 1

Kudos [?]: 12 [1] , given: 3

Re: Movie Salary [#permalink] New post 10 Aug 2010, 11:55
1
This post received
KUDOS
i figured it out as so:

a $60 million dollar gross = $24 million
and
a $100 million dollar gross = $32million

we can notice that the difference between the $100 million and $60 million is equal to $40 million. this $40 million equates to an $8 million salary ($32 - $24).

since we want $40 million in salary, we can add the $8 million difference to the $32 million. if we do that, we also need to add the $40 million difference ($100 - $60) to the $100 million. this gives us $140 million. our answer should be $140 million.

does this sound clear?
_________________

Paaaaayyy Meeeee!!!!!

Moderator
Moderator
User avatar
Status: battlecruiser, operational...
Joined: 25 Apr 2010
Posts: 983
Location: Virginia, USA
Schools: VCU MS Finance 2012
WE 1: Best Buy Supervisor
WE 2: Wealth Management Intern
Followers: 10

Kudos [?]: 80 [0], given: 70

GMAT Tests User
Re: Movie Salary [#permalink] New post 10 Aug 2010, 12:02
awesome explanation guys. thanks.
_________________

Find out what's new at GMAT Club - latest features and updates

Senior Manager
Senior Manager
User avatar
Status: struggling with GMAT
Joined: 06 Dec 2012
Posts: 323
Location: Bangladesh
Concentration: Accounting
GMAT Date: 04-06-2013
GPA: 3.65
Followers: 5

Kudos [?]: 27 [0], given: 46

Re: A certain movie star's salary for each film she makes consis [#permalink] New post 25 Feb 2013, 11:34
Really awesome explanation.................
Re: A certain movie star's salary for each film she makes consis   [#permalink] 25 Feb 2013, 11:34
    Similar topics Author Replies Last post
Similar
Topics:
 New posts At a certain company each employee has a salary grade s that ninomoi 4 05 Dec 2004, 15:13
New posts At a certain company, each employee has a salary grade s nocilis 3 02 Feb 2005, 23:12
New posts At a certain company, each employee has a salary grade s TOUGH GUY 1 12 May 2006, 11:50
New posts At a certain company, each employee has a salary grade s Achilless 1 15 Aug 2006, 21:11
Popular new posts Six movie critics each gave the lastest Dan Smuthers film kevincan 11 01 Oct 2006, 12:26
Display posts from previous: Sort by

A certain movie star's salary for each film she makes consis

  Question banks Downloads My Bookmarks Reviews  
Print view
First unread post

Moderators: Bunuel, VeritasPrepKarishma, IanStewart

Search for:


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.

Main navigation

GMAT Resources

Partners

MBA Resources

www.gmac.com|www.mba.com