It is currently 17 Oct 2017, 08:11

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# During a single hour of a pledge drive for a public radio

Author Message
TAGS:

### Hide Tags

Manager
Joined: 02 Jan 2010
Posts: 132

Kudos [?]: 6 [0], given: 3

### Show Tags

13 Sep 2010, 02:55
I thought D was a trap...Thinking too much i guess
_________________

Regards
Ganesh
Class of 2012
Great Lakes Institute of Management
http://greatlakes.edu.in

Kudos [?]: 6 [0], given: 3

Manhattan Prep Instructor
Affiliations: ManhattanGMAT
Joined: 21 Jan 2010
Posts: 348

Kudos [?]: 1635 [0], given: 11

Location: San Francisco

### Show Tags

13 Sep 2010, 20:05
Hey Vignes,

Not sure about your question. We're not assuming anything. We're trying to find something that explains the discrepancy, which is that somehow, the association gave away gifts worth the exact amount of the relevant pledges, but ended up making money. The only thing that could explain this is that the charity itself DID NOT pay retail price for the gifts (even though they were WORTH the exact value of the pledge).

-t
_________________

Tommy Wallach | Manhattan GMAT Instructor | San Francisco

Manhattan GMAT Discount | Manhattan GMAT Reviews

Kudos [?]: 1635 [0], given: 11

Manager
Joined: 23 Sep 2009
Posts: 147

Kudos [?]: 121 [0], given: 37

### Show Tags

14 Sep 2010, 15:03
Thank you Tommy. I was thinking too much when answering this question....
_________________

Thanks,
VP

Kudos [?]: 121 [0], given: 37

Retired Moderator
Joined: 03 Aug 2010
Posts: 236

Kudos [?]: 42 [0], given: 41

### Show Tags

08 Oct 2010, 02:41
Can someone tell why A is wrong.. .because if the cost of the article has been inflated by adding the cost of postage, then naturally, it will be like

Total cost of goods = actual cost + cost of postage ( this is just inflation ) = total pledge

so out flow for procuring goods will not include the cost of postage because no cost is incurred for postage
_________________

http://www.gmatpill.com/gmat-practice-test/

Amazing Platform

Kudos [?]: 42 [0], given: 41

Intern
Joined: 23 May 2010
Posts: 34

Kudos [?]: 1 [0], given: 1

### Show Tags

08 Oct 2010, 14:19
D for me. . .

Kudos [?]: 1 [0], given: 1

Retired Moderator
Status: 2000 posts! I don't know whether I should feel great or sad about it! LOL
Joined: 04 Oct 2009
Posts: 1637

Kudos [?]: 1104 [0], given: 109

Location: Peru
Schools: Harvard, Stanford, Wharton, MIT & HKS (Government)
WE 1: Economic research
WE 2: Banking
WE 3: Government: Foreign Trade and SMEs

### Show Tags

13 Oct 2010, 09:18
+1 D
_________________

"Life’s battle doesn’t always go to stronger or faster men; but sooner or later the man who wins is the one who thinks he can."

My Integrated Reasoning Logbook / Diary: http://gmatclub.com/forum/my-ir-logbook-diary-133264.html

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 1104 [0], given: 109

Intern
Joined: 27 Sep 2010
Posts: 31

Kudos [?]: 2 [0], given: 3

### Show Tags

13 Oct 2010, 12:40
phoenixrulzz wrote:
I thought D was a trap...Thinking too much i guess

D was a trap in that it wanted you to think it was a trap! Tricky.

I went with D as a first reaction and stuck with it.

Kudos [?]: 2 [0], given: 3

Manager
Joined: 08 Oct 2010
Posts: 213

Kudos [?]: 839 [0], given: 974

Location: Uzbekistan
Schools: Johnson, Fuqua, Simon, Mendoza
WE 3: 10

### Show Tags

26 Jan 2011, 01:04
Pkit wrote:
RaviChandra wrote:
Thanks TommyWallach,
Now its very clear

 "total money raised from pledges accounted for a larger dollar amount than the amount organizers had paid for all the free gifts."

think about that they may have bought all the gifts at a discount from wholesaller.

If there was ans. choice like the one Pkit assumes then, I think, it would prevail over D which is the OA.

Kudos [?]: 839 [0], given: 974

Manager
Joined: 08 Dec 2010
Posts: 199

Kudos [?]: 54 [0], given: 26

WE 1: 4 yr IT

### Show Tags

27 Jan 2011, 07:37
i have a question, if the gifts are not paid for , how can we say "amount paid for" even if it is \$0? usually, IMO you say the gifts are free . Ex:- a question like "how much did u pay for those shirts?" should have the answer "i didn't pay for those" or "i got them for free" . i can't say "i paid \$0" can i? is it correct formally??
_________________

this time, we play for keeps

Kudos [?]: 54 [0], given: 26

Manager
Joined: 27 Oct 2010
Posts: 179

Kudos [?]: 12 [0], given: 20

### Show Tags

27 Jan 2011, 12:15
D. Easy one.

Kudos [?]: 12 [0], given: 20

Manager
Joined: 09 Feb 2010
Posts: 72

Kudos [?]: 133 [0], given: 4

### Show Tags

10 Feb 2011, 20:33

thanks !!

Kudos [?]: 133 [0], given: 4

SVP
Joined: 16 Nov 2010
Posts: 1599

Kudos [?]: 592 [0], given: 36

Location: United States (IN)
Concentration: Strategy, Technology

### Show Tags

14 Apr 2011, 00:00
_________________

Formula of Life -> Achievement/Potential = k * Happiness (where k is a constant)

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 592 [0], given: 36

VP
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 1286

Kudos [?]: 281 [0], given: 10

### Show Tags

20 May 2011, 07:46
D it is.
_________________

Visit -- http://www.sustainable-sphere.com/
Promote Green Business,Sustainable Living and Green Earth !!

Kudos [?]: 281 [0], given: 10

Manager
Joined: 26 Jul 2010
Posts: 102

Kudos [?]: 32 [0], given: 6

Location: India
Concentration: Operations, General Management
Schools: IIMA (M)
GMAT 1: 640 Q48 V29
GMAT 2: 670 Q49 V31
WE: Supply Chain Management (Military & Defense)

### Show Tags

20 May 2011, 09:31
d

because avg price of gift goes down when free gifts are added, but pledge amount remains same..
_________________

lets start again

Kudos [?]: 32 [0], given: 6

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10130

Kudos [?]: 261 [0], given: 0

Re: During a single hour of a pledge drive for a public radio [#permalink]

### Show Tags

28 May 2014, 01:37
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 261 [0], given: 0

Manager
Joined: 08 Jun 2015
Posts: 123

Kudos [?]: 44 [0], given: 40

Re: During a single hour of a pledge drive for a public radio [#permalink]

### Show Tags

08 Jul 2015, 21:24
Option B is misleading and is a potential trap if you think too much about it. Organizers can be surprised by how much money came in, but it doesn't say anything about running out of gifts. If organizers ran out of gifts, then the pledges were met with no gift at all. Of course, pledgers may withdraw if there is no gift... and the announcement only said that pledges were encouraged by the news that pledges would be met with a free gift that has a retail value equal to the pledge amount. It doesn't say that it was guaranteed. But that line of reasoning isn't sufficient to answer the question. It boils down to what you definitively know or don't know - you don't know that they ran out of free gifts.

Option D could mean that organizers paid \$0. Another scenario would be that they paid 80% of the gifts, whereas sponsors donated the last 20%. So, \$ pledge > \$ paid for gifts by organizers. Answer D.

Kudos [?]: 44 [0], given: 40

Senior Manager
Joined: 27 Jul 2014
Posts: 325

Kudos [?]: 68 [0], given: 15

Schools: ISB '15
GMAT 1: 660 Q49 V30
GPA: 3.76
Re: During a single hour of a pledge drive for a public radio [#permalink]

### Show Tags

30 Jul 2015, 06:17
can somebody explain option E
I was unable to understand the wording

Kudos [?]: 68 [0], given: 15

Manager
Joined: 08 Jun 2015
Posts: 123

Kudos [?]: 44 [1], given: 40

During a single hour of a pledge drive for a public radio [#permalink]

### Show Tags

30 Jul 2015, 10:02
1
KUDOS
kanigmat011 wrote:
can somebody explain option E
I was unable to understand the wording

E) More money was raised during this hour than during the previous three hours, driving down the average out-of-pocket cost of the free gifts.

We take E as true, which means average cost must drop.

Average cost: Total C/Q
Each item is \$1; every donor pledges only \$1
Each item is matched with a gift of equal value, which essentially means that the pledge drive stops as soon the gifts are gone (and not that there is an infinite quantity of gifts on hand, though the organizers can simply go out and buy more gifts after receiving the pledges, thereby prolonging the pledge drive for as long as possible with an "unlimited" quantity).

Hour 1: \$1 raised
Average cost after 1 hour: \$10/1 = \$10.00 per item
Hour 2: \$5 raised
Average cost after 2 hours: \$10/6 = \$1.67 per item

It doesn't give us any information that we don't already know. That is, we already know that at the end of the day, average cost will be \$1 in the example above , since all pledges are matched with an equivalent retail value. The total quantity could be 6 with an average cost that's \$1.67 with \$6 raised, which would still lead to an average cost of \$1 at the end of the pledge drive. Or, it could be \$100 in initial cost with \$100 raised in pledges with an average cost of \$1 after just the first hour. The total cost is equivalent to the total pledge amount in all cases.

If you think about it, it doesn't make sense to hold a pledge drive by spending the same amount of money on gifts as the amount you will receive from pledges - there are other costs to consider, too, such as shipping, utilities, etc... but that's an aside.

Kudos [?]: 44 [1], given: 40

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10130

Kudos [?]: 261 [0], given: 0

Re: During a single hour of a pledge drive for a public radio [#permalink]

### Show Tags

16 Aug 2017, 15:13
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 261 [0], given: 0

Re: During a single hour of a pledge drive for a public radio   [#permalink] 16 Aug 2017, 15:13

Go to page   Previous    1   2   [ 39 posts ]

Display posts from previous: Sort by