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26 Apr 2024, 01:30
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
80% (01:40) correct
20%
(01:47)
wrong
based on 75
sessions
History
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Not Attempted Yet
A certain medical insurance company sold two types of policies: individual and family. Individual coverage cost policyholders $250 per year. If the company's total revenue for the year was $257,500, what was the cost to policyholders for a family policy?
(1) The revenue from individual policies was 10% of the total revenue.
(2) The company sold three times as many family policies as they did individual policies.
(1) The revenue from individual policies was 10% of the total revenue.
(2) The company sold three times as many family policies as they did individual policies.
26 Apr 2024, 05:48
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Bookmarks
(1) The revenue from individual policies was 10% of the total revenue.
\(\frac{1}{10}x = 257500\)
\(x = 25750\) which means that the family policies earned a total of \(231750\).
However, without knowing how many policies were sold it's impossible to solve how much a family policy costs.
INSUFFICIENT
(2) The company sold three times as many family policies as they did individual policies.
Let family polices = \(f\) and individual polcies = \(i\).
\(f = 3i\)
Without further information one cannot solve for the cost of a family policy.
INSUFFICIENT
(1+2)
Together, we know that the the individual policies generated \(25750\) revenue, that each policy costs \(250\) and that 3 times as many family policies were sold than individual policies. We also know that the family policies generated \(231750\) of revenue.
Number of Individual Policies Sold: \(\frac{25750}{250} = 103\). This means that \(309\) family policies were sold.
Cost of Family Policies: \(\frac{231750}{309} = 750\)
SUFFICIENT
ANSWER C
(1) The revenue from individual policies was 10% of the total revenue.
\(\frac{1}{10}x = 257500\)
\(x = 25750\) which means that the family policies earned a total of \(231750\).
However, without knowing how many policies were sold it's impossible to solve how much a family policy costs.
INSUFFICIENT
(2) The company sold three times as many family policies as they did individual policies.
Let family polices = \(f\) and individual polcies = \(i\).
\(f = 3i\)
Without further information one cannot solve for the cost of a family policy.
INSUFFICIENT
(1+2)
Together, we know that the the individual policies generated \(25750\) revenue, that each policy costs \(250\) and that 3 times as many family policies were sold than individual policies. We also know that the family policies generated \(231750\) of revenue.
Number of Individual Policies Sold: \(\frac{25750}{250} = 103\). This means that \(309\) family policies were sold.
Cost of Family Policies: \(\frac{231750}{309} = 750\)
SUFFICIENT
ANSWER C
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