NEW HERE? LEARN MORE
closeclose
Last visit was: 16 May 2024, 01:45 It is currently 16 May 2024, 01:45
Decision Tracker
My Rewards
New posts
New comers' posts

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.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

Company X is considering two venues for holding an event. Venue A dema

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 93304
Own Kudos [?]: 624117 [0]
Given Kudos: 81885
Send PM
CAT Tests Forum Quiz Mode
Company X is considering two venues for holding an event. Venue A dema [#permalink] New post   25 Nov 2021, 07:00
Expert Reply
00:00
A
B
C
D
E

Difficulty:

15% (low)

Question Stats:

79% (01:15) correct 21% (01:29) wrong based on 42 sessions
Hide Show timer Statistics
Company X is considering two venues for holding an event. Venue A demands $100 per guest. Venue B demands $3000 fixed cost and an additional $40 per guest. What is the minimum number of guests that's the event must expect for the venue B to have a greater economic value?

A 30
B 40
C 50
D 51
E 60
ShowHide Answer
Official Answer
D
avatar
S
Anurocks1233
Manager
Manager
Joined: 01 Oct 2021
Posts: 52
Own Kudos [?]: 54 [1]
Given Kudos: 90
Send PM
Re: Company X is considering two venues for holding an event. Venue A dema [#permalink] New post   01 Dec 2021, 12:51
1
Kudos
Plug the option start with highest 60
60*40 +3000= 5400 venue B
100*60=6000 Venue A

Let’s try 50
50*40+3000=5000 Venue B
100*50 =5000 venue A

They break even at 50 so 51 is minimum number hence D

Posted from my mobile device
User avatar
P
Showmeyaa
Senior Manager
Senior Manager
Joined: 24 Jun 2019
Posts: 431
Own Kudos [?]: 437 [1]
Given Kudos: 117
Location: India
Concentration: Marketing, Strategy
Send PM
Reviews Badge
Re: Company X is considering two venues for holding an event. Venue A dema [#permalink] New post   04 Dec 2021, 09:49
1
Kudos
Bunuel wrote:
Company X is considering two venues for holding an event. Venue A demands $100 per guest. Venue B demands $3000 fixed cost and an additional $40 per guest. What is the minimum number of guests that's the event must expect for the venue B to have a greater economic value?

A 30
B 40
C 50
D 51
E 60


Let the minimum number of guests be x
As per the given conditions:
Venue A will earn = 100x
Venue B will earn = 3000 + 40x
Again, as per the question stem:
3000 + 40x > 100x
3000 > 60x
50 > x
IMO, (D) = 51!
User avatar
L
KarishmaB
Tutor
Joined: 16 Oct 2010
Posts: 14892
Own Kudos [?]: 65307 [2]
Given Kudos: 431
Location: Pune, India
Send PM
Forum Quiz Mode
Re: Company X is considering two venues for holding an event. Venue A dema [#permalink] New post   04 Dec 2021, 22:17
2
Kudos
Expert Reply
Bunuel wrote:
Company X is considering two venues for holding an event. Venue A demands $100 per guest. Venue B demands $3000 fixed cost and an additional $40 per guest. What is the minimum number of guests that's the event must expect for the venue B to have a greater economic value?

A 30
B 40
C 50
D 51
E 60


Venue B will charge $40 per guest (and fixed cost of $3000) while venue A will charge $100 per guest so venue A charges $60 extra per guest compared with B.

Venue B will cost the same as venue A when the number of guests are such that this 3000 accounts for all $60 extras i.e there are 3000/60 = 50 guests.

For each additional guest, venue B will only charge $40 while venue A will charge $100. So venue B will become cheaper the moment the number of guests become more than 50 i.e. 51.

Answer (D)
User avatar
L
Archit3110
GMAT Club Legend
GMAT Club Legend
Joined: 18 Aug 2017
Status:You learn more from failure than from success.
Posts: 8023
Own Kudos [?]: 4122 [1]
Given Kudos: 242
Location: India
Concentration: Sustainability, Marketing
GMAT Focus 1:
545 Q79 V79 DI73
GPA: 4
WE:Marketing (Energy and Utilities)
Send PM
GMAT ToolKit User Forum Quiz Mode
Re: Company X is considering two venues for holding an event. Venue A dema [#permalink] New post   04 Dec 2021, 23:00
1
Kudos
Let total guests required for event be x
We need to make venue B economic value be greater than that of venue A
This means that economic value of A is more than that of B or we can say:

3000+40x<100x
3000<60x
50<x
so at 50 guests we will have a breakeven but at x=51 the economic value of venue B will be more than venue A.
Option D



Bunuel wrote:
Company X is considering two venues for holding an event. Venue A demands $100 per guest. Venue B demands $3000 fixed cost and an additional $40 per guest. What is the minimum number of guests that's the event must expect for the venue B to have a greater economic value?

A 30
B 40
C 50
D 51
E 60


Posted from my mobile device
GMAT Club Bot
gmatclubot
Re: Company X is considering two venues for holding an event. Venue A dema [#permalink]
04 Dec 2021, 23:00
Moderators:
Bunuel
Math Expert
93290 posts
yashikaaggarwal
Senior Moderator - Masters Forum
3136 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions