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# CR: Box office receipts

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Manager
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31 Mar 2008, 17:51
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Source: MGMAT Practice Test 1

Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

If the statements above are true, which of the following must be true?

A. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year.

B. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.

C. The price of a movie ticket has not increased since last year.

D. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.

E. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
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Re: CR: Box office receipts [#permalink]

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31 Mar 2008, 17:59
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This is more of mathematical question and less of verbal.

Here is the explanation.

A. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year.
It might happen that in later half of the year people do not watch much movies so revenue may fall down. So does not hold good.

B. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
Given that movies released in this year first half's is equal to this year's second half. No relation between number of movies of this year and previous year is given.

C. The price of a movie ticket has not increased since last year.
Movie ticket price is not discussed at all.

D. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
This is what very first line is telling.

E. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
Increase in revenue does not mean that number of people increased, it might also happen because of increased ticket prices.
Senior Manager
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Re: CR: Box office receipts [#permalink]

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31 Mar 2008, 19:17
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Agree this is more mathematical than logical.

Hope GMAT has more like these

Manager
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Re: CR: Box office receipts [#permalink]

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31 Mar 2008, 20:49
OA is D. I guess my struggle was with the terminology. Aren't they creating a situation where we have to assume Box Office Receipts = Revenue?
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Re: CR: Box office receipts [#permalink]

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31 Mar 2008, 21:30
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As international, I did not refer receipts to revenues, that is why I chose wrongly also. Thanks!
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Re: CR: Box office receipts [#permalink]

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17 Aug 2013, 12:37
Hi Sondenso,

PFB explanation.

Let say the total revenue(Box office receipts) earned by the independent movies last year be 'X'. So according to the facts present in the argument, the total revenue earned by independent movies for the first half of this year should be:

20% more X => (120/100)*X

So now we have both amounts with us. Let us now take the averages.

For last year, the average revenue earned per movie will be:
X/50

For this year(half-of-the-year), the average revenue earned per movie so far will be:
[(120/100)*X]/20
=> 3*(X/50)
=> 3 times the average revenue earned per movie last year.

So this proves option 'D' mathematically too. And it proves beyond the confusion of either 'receipt-revenue' word game or price-per-ticket stimuli.

sondenso wrote:
As international, I did not refer receipts to revenues, that is why I chose wrongly also. Thanks!
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Re: CR: Box office receipts [#permalink]

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18 Aug 2013, 15:30
Passage does not say anything about price. So what if price is dropped then even 20% more receipts, revenue may not be more. D cannot be 100% true all the time.
but if 20 more receipts, means atleast 20% more people watched not matter what the price is. I think answer should be E.
Re: CR: Box office receipts   [#permalink] 18 Aug 2013, 15:30
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