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shubhamsomani020
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Loyal membership comes with a number of excellent benefits. Members en 09 Aug 2025, 00:40
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this is wrong 10% is not explicitly mentioned as retail price. it's cash back, cash back are always on buying price which is already discounted to 40% so total discount is 46% not 50%
Sajjad1994
Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Statement 1: The median member price of the list of products from the catalogue is $20.40; the median retail cost is $34.00.

Statement 2: Loyal members receive an immediate 40% savings and 10% cash back on their online purchases, for a total savings of 50% on the retail cost of the item. They also receive free shipping, so their total savings are more than 50% of the costs that nonmembers would pay.

Statement 3: The least expensive product in the line is $10.00. If that product was ordered each month for 6 months, the total cost would be $60.00, which is more than the $50.00 cancellation fee.

Answer: No, Yes, and No


2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

The correct answer is $39. Members receive a 40% discount off the retail price of the item, for a total discount of $65*0.40, or $26. The member price is 65$-26$ or 39$.

Answer: D
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arjunsathish
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Loyal membership comes with a number of excellent benefits. Members en 12 Sep 2025, 03:02
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Lets assume that non member price is 100 then member price would be 60 considering a 40 percent discount , the customer spends 60 and gets a cashback of 10 percent which is equal to 5 , so he effectively pays 54 , which is still more than 50 percent , he saves 46 percent , which isnt more than 50 percent

Sajjad1994


This is the second statement:

"Loyal members who purchase online save more than 50% off the cost of their total purchases and shipping compared to nonmembers."

It didn't talk about "TODAY". And it doesn't matter when members will get 10% cashback in their pockets the reality is they will save, and the statement stands correct. I accept the wording of the question is not up to the mark.
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manish8242
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I did not get the GMAT pattern. Sometimes they say that in inference type question select 'YES' if we can infer about it from the info either 100% correct or 100% wrong. And when we are not sure what will be the answer then only we have to mark NO bcz we can't infer.

So in the 1- a part we are sure that the median is not 20.40 which is wrong 100% so we are sure that we can infer it so it should be YES i have seen other questions where this logic has been used tell me where i am missing the point why there are different rules for different question
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NO, NO, NO and $39.00

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

(A) The median retail cost of the product line is $20.40.

Retail Cost = {17, 25, 34, 45, 100}
Median = $34

ANSWER: NO

(B) Loyal members who purchase online save more than 50% off the cost of their total purchases and shipping compared to nonmembers.

"40% off the retail price of all purchases" is mentioned under "Membership benefit sales flyer".

So Loyal members only save 40% and NOT 50%.

ANSWER: NO

(C) The minimum purchase amount within the 6-month introductory period is less than the $50.00 charge issued to accounts that are canceled early.

Membership contract said "I understand that I will be required to purchase a minimum of one product per month for the first 6 months of membership."

Let's take cheapest item from catalogue: Detox Tea (PS: You should try this, its good :) )

Detox tea cost $10.20, i have to buy this each month for 6 months, total amount = 10.2x6 = $61.2 (which is greater than $50)

ANSWER: NO

2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

65(60/100) = $39

ANSWER: $39.00
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The wording of the question is ambiguous. Archiving it.
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