It is currently 24 Jun 2017, 02:20

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

### Show Tags

26 Nov 2010, 14:52
1
KUDOS
3
This post was
BOOKMARKED
00:00

Difficulty:

55% (hard)

Question Stats:

67% (02:54) correct 33% (02:28) wrong based on 202 sessions

### HideShow timer Statistics

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

_________________

I appreciate the kudos if you find this post helpful! +1

Manager
Joined: 02 Apr 2010
Posts: 103
Re: $686,000 in bonus money is to be divided among 6 employees. No employe [#permalink] ### Show Tags 26 Nov 2010, 15:03 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.
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7440
Location: Pune, India
Re: $686,000 in bonus money is to be divided among 6 employees. No employe [#permalink] ### Show Tags 26 Nov 2010, 20:15 Expert's post 1 This post was BOOKMARKED 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).
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Joined: 13 Oct 2011 Posts: 12$686,000 in bonus money is to be divided among 6 employees [#permalink]

### Show Tags

13 Feb 2012, 20:34
2
This post was
BOOKMARKED
$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

I often struggle with such questions. I can understand that for minimum value , we need to consider highest salary 20%, however I cannot understand how to put other 4 intermediate values. When I read the explanation I understand, but do not seem to apply it while solving. Can someone pls help in how to think through such problems.

Thanks.
Math Expert
Joined: 02 Sep 2009
Posts: 39626
Re: $686,000 in bonus money is to be divided among 6 employees [#permalink] ### Show Tags 13 Feb 2012, 21:45 1 This post received KUDOS Expert's post 6 This post was BOOKMARKED priyankaparanjape wrote:$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 I often struggle with such questions. I can understand that for minimum value , we need to consider highest salary 20%, however I cannot understand how to put other 4 intermediate values. When I read the explanation I understand, but do not seem to apply it while solving. Can someone pls help in how to think through such problems. Thanks. Since "no employee is to receive a bonus more than 20% greater than the bonus received by any other employee", then the bonuses of 6 employees must be in the range: $$x$$ and $$1.2x$$. So we want to minimize $$x$$. To minimize $$x$$ we should make only one employee to receive that bonus (minimum possible) and the rest 5 employees to receive $$1.2x$$ bonus (maximum possible). $$x+5*1.2x=686$$ --> $$7x=686$$ --> $$x=98$$. Answer: C. General rule for such kind of problems: to maximize one quantity, minimize the others; to minimize one quantity, maximize the others. Similar questions: a-certain-city-with-population-of-132-000-is-to-be-divided-76217.html?hilit=population#p1035185 shaggy-has-to-learn-the-same-71-hiragana-characters-and-126948.html Other min/max questions: PS: search.php?search_id=tag&tag_id=63 DS: search.php?search_id=tag&tag_id=42 Hope it helps. _________________ GMAT Club Legend Joined: 09 Sep 2013 Posts: 15937 Re:$686,000 in bonus money is to be divided among 6 employees [#permalink]

### Show Tags

04 May 2014, 14:33
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Manager
Joined: 12 Feb 2012
Posts: 135

### Show Tags

13 Jun 2014, 01:56
alphabeta1234 wrote:
Hi Bunuel,

I am confused. Why are we minimizing 1 persons bonus and maxing out all the other 5??
Shouldnt we be minimizing 1 persons bonus, maxing only 1 other persons bonuses and keeping the 4 in the middle at 1/6 of the total bonus. So let 686,000/6=@

Posted from my mobile device

Questions asks: what is the minimum possible bonus that an employee can receive?

If we maximize the bonuses of 5 people the remaining 6th one will get the minimum bonus.
_________________
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 15937

### Show Tags

15 May 2016, 13:01
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________