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A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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27 Mar 2017, 03:51
Question Stats:
89% (01:05) correct 11% (01:52) wrong based on 105 sessions
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A certain business spends 1/2 of its revenue on payroll, 1/4 on inventory, and 1/5 on healthcare. If the remaining $200,000 of revenue is issued as dividends, what is the business's total revenue? A. $2 million B. $3 million C. $4 million D. $4.5 million E. $5 million
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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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27 Mar 2017, 08:41
Bunuel wrote: A certain business spends 1/2 of its revenue on payroll, 1/4 on inventory, and 1/5 on healthcare. If the remaining $200,000 of revenue is issued as dividends, what is the business's total revenue?
A. $2 million B. $3 million C. $4 million D. $4.5 million E. $5 million To get a better idea of what's going on, let's rewrite the 3 fractions (1/2, 1/4 and 1/5) with a common denominator (20). We get: A certain business spends 10/20 of its revenue on payroll, 5/20 on inventory, and 4/20 on healthcare. 10/20 + 5/20 + 4/20 = 19/20 So, we have accounted for 19/20 of the revenue. In other words, 1/20 of the revenue is not accounted for. The remaining $200,000 of revenue is issued as dividendsSo, $200,000 represents 1/20 of the revenue We can write: $200,000 = 1/20(revenue) To solve for "revenue," we can multiply both sides by 20 to get: $4,000,000 = revenue Answer: C
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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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27 Mar 2017, 13:33
1 (1/2 + 1/4 + 1/5) 1  (10/20 + 5/20 + 4/20) 1/20
1/20x = 200,000 x = 4,000,000
Which is answer C



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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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28 Mar 2017, 20:52
Hi All, This question can be solved by TESTing THE ANSWERS. We're told that a business spends 1/2 of its revenue on payroll, 1/4 on inventory, 1/5 on healthcare and the REMAINING $200,000 is issued as dividends. We're asked for the business's TOTAL revenue? Let's TEST Answer B: $3 million 1/2 of $3 million = $1.5 million 1/4 of $3 million = $0.75 million 1/5 of $3 million = $0.6 million Total = $2.85 million, which leaves $150,000 for dividends. This is TOO LOW; there needs to be MORE revenue. Notice how $200,000 is exactly 1/3 greater than $150,000.... maybe we're looking for a total that is exactly 1/3 greater than $3 million..... Let's TEST Answer C: $4 million 1/2 of $4 million = $2 million 1/4 of $4 million = $1 million 1/5 of $4 million = $0.8 million Total = $3.8 million, which leaves $200,000 for dividends. This is an exact match for what we were told, so this MUST be the answer. Final Answer: GMAT assassins aren't born, they're made, Rich
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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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29 Mar 2017, 00:22
Converting into percentages, 1/2 is 50%, 1/4 is 25% and 1/5 is 20% Adding the above, we get 95%. Also, it is given the remaining 5% is 200000$ Hence total is 100% = 200000*20 = $4 million(Option C)
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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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20 Apr 2017, 07:38
Why is the OA E ? I think the answer should be C...



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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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20 Apr 2017, 07:50
ppcm wrote: Why is the OA E ? I think the answer should be C... Yes, it's C. Edited the OA. Thank you.
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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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16 Jul 2017, 18:24
the quickest way is to put everything in fractions, or even decimals.. 0.5  payroll 0.25  inventory 0.2  healthcare total: 0.95
remaining, 0.05 of revenue is 200,000. now... 0.1 would be 400,000 1 would be 4,000,000
no need of any complex operations...



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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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20 Jul 2017, 16:34
Bunuel wrote: A certain business spends 1/2 of its revenue on payroll, 1/4 on inventory, and 1/5 on healthcare. If the remaining $200,000 of revenue is issued as dividends, what is the business's total revenue?
A. $2 million B. $3 million C. $4 million D. $4.5 million E. $5 million We can let t = total revenue, and we can create the following equation: (1/2)t + (1/4)t + (1/5)t + 200,000 = t Multiplying the entire equation by 20, we have: 10t + 5t + 4t + 4,000,000 = 20t 4,000,000 = t Answer: C
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Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent
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