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 Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

$686,000 in bonus money is to be divided among 6 employees. No employe [#permalink]

Show Tags

26 Nov 2010, 14:52

1

This post received KUDOS

3

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

55% (hard)

Question Stats:

67% (02:54) correct
33% (02:29) wrong based on 200 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?

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

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).
_________________

$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.

$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.

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.
_________________

Re: $686,000 in bonus money is to be divided among 6 employees [#permalink]

Show Tags

12 Jun 2014, 21:11

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=@ @ is what everyone should get in an even world. So for the first guy, whom we eant to minimize, i am going to deduct x from his @. For the 6th guy, the guy we want to max out where going to give him x, but such that the following condition is met.

(@-x)1.2=(@+x) .2@=2.2x .2(686,000/6)/2.2=10393.0=x Now the first guy, the minimum bonus guy is going to get @-x=114333-10393=103,940 Where am I going wrong?

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.
_________________

Re: $686,000 in bonus money is to be divided among 6 employees [#permalink]

Show Tags

16 Jun 2015, 12:13

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.
_________________

Re: $686,000 in bonus money is to be divided among 6 employees. No employe [#permalink]

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.
_________________

Military MBA Acceptance Rate Analysis Transitioning from the military to MBA is a fairly popular path to follow. A little over 4% of MBA applications come from military veterans...

Best Schools for Young MBA Applicants Deciding when to start applying to business school can be a challenge. Salary increases dramatically after an MBA, but schools tend to prefer...

Marty Cagan is founding partner of the Silicon Valley Product Group, a consulting firm that helps companies with their product strategy. Prior to that he held product roles at...