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A certain medical insurance company sold two types of policies: indivi

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Joined: 17 Jun 2018
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Location: India
Schools: IMD '20
GPA: 2.84
WE: Engineering (Consulting)
A certain medical insurance company sold two types of policies: indivi  [#permalink]

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10 Feb 2019, 01:26
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00:00

Difficulty:

35% (medium)

Question Stats:

68% (01:29) correct 32% (01:43) wrong based on 22 sessions

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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.
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Joined: 09 Mar 2018
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A certain medical insurance company sold two types of policies: indivi  [#permalink]

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10 Feb 2019, 02:05
arpitkansal wrote:
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.

So lets see without solving what do we know and what can we find

Cost to policyholders for a FP(family policy)

250 * IC (number of Individual coverage) + Cost of FP/year * FP = 257500 (a)

from 1, Revenue from IP is given, but we dont know anything about Cost of FP/year * FP

from 2, FP = 3* IC, these can take any values.

Combination, we are fixing the revenue earned from 250 * IC, enabling us to calculate cost to policyholders for a family policy

When substituted back in (a), we can get an expression in only one unknown

Once you realize this, answer is C
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A certain medical insurance company sold two types of policies: indivi   [#permalink] 10 Feb 2019, 02:05
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