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26 Nov 2010, 13:52
1
5
00:00

Difficulty:

55% (hard)

Question Stats:

64% (02:09) correct 36% (02:49) wrong based on 231 sessions

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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

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Re: $686,000 in bonus money is to be divided among 6 employees [#permalink] Show Tags 13 Feb 2012, 20:45 2 3 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

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26 Nov 2010, 14:03
1
3
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: 8665 Location: Pune, India Re:$686,000 in bonus money is to be divided among 6 employees. No employe  [#permalink]

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26 Nov 2010, 19:15
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 Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > Intern Joined: 13 Oct 2011 Posts: 10$686,000 in bonus money is to be divided among 6 employees  [#permalink]

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13 Feb 2012, 19:34
1
1
$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.
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Joined: 12 Feb 2012
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13 Jun 2014, 00:56
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=@

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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.
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Re: $686,000 in bonus money is to be divided among 6 employees [#permalink] Show Tags 14 Oct 2017, 03:25 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 &nbs [#permalink] 14 Oct 2017, 03:25
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