vwjetty wrote:

A certain movie star's salary for each film she makes consists of a fixed amount, along with a percentage of the gross revenue the film generates. In her last two roles, the star made $32 million on a film that grossed $100 million, and $24 million on a film that grossed $60 million. If the star wants to make at least $40 million on her next film, what is the minimum amount of gross revenue the film must generate?

A $110 million

B $120 million

C $130 million

D $140 million

E $150 million

Let F = the fixed amount the star receives for a movie

Let p = the percentage of the gross revenue the star receives for a movie

The star made $32 million on a film that grossed $100 million So, we can write:

F + (p/100)(100) = 32 [we'll assume that 100 and 32 represent 100 million and 32 million]The star made $24 million on a film that grossed $60 millionSo, we can write:

F + (p/100)(60) = 24We now have:

F + (p/100)(100) = 32F + (p/100)(60) = 24Subtract the bottom equation from the top equation to get: (p/100)(100) - (p/100)(60) = 8

Factor to get: (p/100)[100 - 60] = 8

Simplify to get: (p/100)[40] = 8

Multiply both sides by 100 to get: 40p = 800

Solve: p = 20

Now that we know the value of p, we can find the value of F

Take

F + (p/100)(100) = 32 and replace p with 20 to get: F + (20/100)(100) = 32

Simplify: F + 20 = 32

So, F = 12

So, the star receives 12 million (fixed) PLUS 20% of the gross revenue

If the star wants to make at least $40 million on her next film, what is the minimum amount of gross revenue the film must generate? Let x = gross revenue the film must generate

We can write: 12 + 20% of x = 40

Rewrite as: 12 + 0.2x = 40

Subtract 12 from both sides: 0.2x = 28

Solve: x = 140 (million)

Answer: D

Cheers,

Brent

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Brent Hanneson – GMATPrepNow.com

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