GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 24 Apr 2019, 05:07

Close

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
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.

Close

Request Expert Reply

Confirm Cancel

A certain business spends 1/2 of its revenue on payroll, 1/4 on invent

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 54493
A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 27 Mar 2017, 03:51
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

89% (01:05) correct 11% (01:52) wrong based on 105 sessions

HideShow timer Statistics

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

_________________
CEO
CEO
User avatar
V
Joined: 12 Sep 2015
Posts: 3588
Location: Canada
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 27 Mar 2017, 08:41
1
Top Contributor
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 dividends
So, $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
_________________
Test confidently with gmatprepnow.com
Image
Manager
Manager
avatar
B
Joined: 06 Dec 2016
Posts: 245
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 27 Mar 2017, 13:33
1
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
EMPOWERgmat Instructor
User avatar
V
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 13969
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 28 Mar 2017, 20:52
1
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
_________________
760+: Learn What GMAT Assassins Do to Score at the Highest Levels
Contact Rich at: Rich.C@empowergmat.com

*****Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!*****

Rich Cohen

Co-Founder & GMAT Assassin

Special Offer: Save $75 + GMAT Club Tests Free
  Official GMAT Exam Packs + 70 Pt. Improvement Guarantee
www.empowergmat.com/
Senior PS Moderator
User avatar
V
Joined: 26 Feb 2016
Posts: 3386
Location: India
GPA: 3.12
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 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)
_________________
You've got what it takes, but it will take everything you've got
Intern
Intern
avatar
B
Joined: 14 Mar 2017
Posts: 5
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 20 Apr 2017, 07:38
1
Why is the OA E ? I think the answer should be C...
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 54493
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 20 Apr 2017, 07:50
Board of Directors
User avatar
P
Joined: 17 Jul 2014
Posts: 2556
Location: United States (IL)
Concentration: Finance, Economics
GMAT 1: 650 Q49 V30
GPA: 3.92
WE: General Management (Transportation)
GMAT ToolKit User Reviews Badge
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 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...
Target Test Prep Representative
User avatar
G
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2825
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent  [#permalink]

Show Tags

New post 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
_________________

Jeffrey Miller

Head of GMAT Instruction

Jeff@TargetTestPrep.com
TTP - Target Test Prep Logo
122 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

GMAT Club Bot
Re: A certain business spends 1/2 of its revenue on payroll, 1/4 on invent   [#permalink] 20 Jul 2017, 16:34
Display posts from previous: Sort by

A certain business spends 1/2 of its revenue on payroll, 1/4 on invent

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

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

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.