At a certain corporation, N is the total number of employees. These e

Question

At a certain corporation, N is the total number of employees. These employees can choose among a variety of benefits packages, and R% of them choose the stock option plan as their benefit package. For each employee in this plan, the corporation annually buys S shares of the company’s stock. Suppose the average price per share of the company’s stock is P.

Whoisdmx15 · Answer

It's not letting me submit the answer.
This post has been archived or something else.
Or is it just me?

GmatTest2026 · Answer

If I click on the timer is not working for me. Due to this, I cannot submit the answer to this question. Could you pls check if there is some issue?

Bunuel · Answer

This should be fixed now. Thank you!

ManifestDreamMBA · Answer

Number of employees = N
Employees with stock option = N*R/100
Shares per plan = S
Price per share = P

Total number of shares = Employees with stock option * Shares per plan = NR/100 *S = NRS/100

Average price per employee = Total shares * price/Number of employees = (NRS/100 * P)/ (NR/100) = NRSP/NR = SP

Bismuth83 · Answer

1. First, we need to  find just how many shares the company must get each year . R% of N employees choose the stock option, or  \frac{NR}{100}  employees. It is known that the company buys S shares for each of these employees, making a total of  \frac{NRS}{100}  shares bought.

2. Next, the question asks us to  find how much the company gives, in terms of value, to each employee that chooses a stock option . Since each stock costs P and each employee gets S stocks, the monetary value given is SP.

3. Our answer will be:   The total number of shares of stock the corporation must buy annually to support this benefit package - NRS/100 and The average monetary value of a single employee’s annual benefit in this plan - SP  .

Agarwal2003 · Answer

While calculating the average we should divide by N and not NR/100. Average is to be calculated over all employees

HarshZsssh · Answer

need more clarity for second part of the question

Agarwal2003 · Answer

Which part

ManifestDreamMBA · Answer

Think of these as numbers 
 Number of employees = N = 1000 
 Of these 10% chose stock options
Employees with stock option = N*R/100 = 1000*10% = 100
Shares per plan = S = 20
Price per share = P = 5

So, now the total shares required for the 100 employees  
 Total number of shares = Employees with stock option * Shares per plan = NR/100 *S = NRS/100 = 100*20 = 2000

Average price per employee = Total shares * Price/Number of employees = (NRS/100 * P)/ (NR/100) = NRSP/NR = SP = 2000*5/100 = 100

Hope this helps!

egmat · Answer

Hi HarshZsssh!

Let me break down the second part — the average monetary value of a single employee's annual benefit — nice and slow.

The question tells us:
- Each employee in the stock option plan gets  S  shares of stock per year.
- The average price per share is  P  dollars.

So the question is simply: what is the dollar value of the shares ONE employee receives?

That's just:

Value = (number of shares per employee) × (price per share) = S × P = SP

That's it! The answer for the Average Monetary Value column is  Row 6: SP .

Note that  this part does NOT involve:
- It does NOT involve  N  (total employees), because we only care about ONE employee's benefit.
- It does NOT involve  R  (the percentage choosing this plan), because we're not counting how many people chose it — we already know the person IS in the plan.

A common trap here is picking RSP/100 (Row 5), which would give the total dollar value across ALL employees in the plan.  But the question asks for a SINGLE employee's benefit, so we strip away  N  and  R  entirely.

To see how both parts connect:

-  Part A (Total Shares):  First find how many employees are in the plan:  N × R/100 . Then multiply by  S  shares each:  NRS/100 . This is  Row 3 .
-  Part B (Value Per Employee):  Each employee gets  S  shares worth  P  each:  SP . This is  Row 6 .

You can even sanity-check: if you multiply Part B (the value per person,  SP ) by the number of people in the plan ( NR/100 ), you'd get the total cost to the corporation:  NRSP/100 . That makes sense — total cost = per-person cost × number of people. Everything fits together.

Answer: 3A, 6B

At a certain corporation, N is the total number of employees. These e

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

The total number of shares of stock the corporation must buy annually to support this benefit package	The average monetary value of a single employee’s annual benefit in this plan
		NPS
		NRS
		NRS/100
		RSP
		RSP/100
		SP

GMAT Two-part Analysis (TPA) Questions

­At a certain corporation, N is the total number of employees. These e

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

At a certain corporation, N is the total number of employees. These e