It is currently 18 Jan 2018, 03:53

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.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Each customer of a networking company subscribes to one of two plans:

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 43320

Kudos [?]: 139371 [0], given: 12787

Each customer of a networking company subscribes to one of two plans: [#permalink]

Show Tags

New post 29 Jul 2015, 14:46
Expert's post
5
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

43% (01:45) correct 57% (01:09) wrong based on 127 sessions

HideShow timer Statistics

Each customer of a networking company subscribes to one of two plans: Plan A or Plan B. Plan A costs $75 per month and Plan B costs $175 per month per customer. If the company’s average revenue per customer per month is $100, then what percent of the company's revenue comes from customers with Plan A?

A. 25%
B. 30%
C. 37.5%
D. 56.25%
E. 75%

Kudos for a correct solution.
[Reveal] Spoiler: OA

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 139371 [0], given: 12787

2 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 15 Sep 2011
Posts: 358

Kudos [?]: 443 [2], given: 46

Location: United States
WE: Corporate Finance (Manufacturing)
GMAT ToolKit User
Each customer of a networking company subscribes to one of two plans: [#permalink]

Show Tags

New post 29 Jul 2015, 15:28
2
This post received
KUDOS
Bunuel wrote:
Each customer of a networking company subscribes to one of two plans: Plan A or Plan B. Plan A costs $75 per month and Plan B costs $175 per month per customer. If the company’s average revenue per customer per month is $100, then what percent of the company's revenue comes from customers with Plan A?

A. 25%
B. 30%
C. 37.5%
D. 56.25%
E. 75%

Kudos for a correct solution.


The question asks for the amount of revenue from plan A, but before the amount of revenue can be calculated, the number of units from Plan A must be calculated. If the average revenue was $100\(x\), with \(x\) being the quantity of total plans, the weight between 75 and 175 is \(3:1\). Again, the question is asking what the revenue is. Thus, assume that 4 units were sold, three of the four units equals $225. \(\frac{225}{400}\) or \(56.25\)%.

Answer D.

To prove that's the correct answer choice, I went through the answer choices.
A. 25% Trick answer, paired with E. Out.
B. 30% Figured percentage must be a fourth or eight of something, so since the number of units a multiple of 4, 30% is out.
C. 37.5% Paired with D. Out
D. 56.25% Correct
E. 75% Trick answer if problem were half solved. Out

Kudos [?]: 443 [2], given: 46

Expert Post
1 KUDOS received
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 43320

Kudos [?]: 139371 [1], given: 12787

Re: Each customer of a networking company subscribes to one of two plans: [#permalink]

Show Tags

New post 17 Aug 2015, 08:47
1
This post received
KUDOS
Expert's post
2
This post was
BOOKMARKED
Bunuel wrote:
Each customer of a networking company subscribes to one of two plans: Plan A or Plan B. Plan A costs $75 per month and Plan B costs $175 per month per customer. If the company’s average revenue per customer per month is $100, then what percent of the company's revenue comes from customers with Plan A?

A. 25%
B. 30%
C. 37.5%
D. 56.25%
E. 75%

Kudos for a correct solution.


800score Official Solution:

This is a tricky weighted average problem. If there are only two price levels, $75 and $175, and the average customer pays $100, then the number of customers who pay $75 must be 3 times the number of customers who pay $175, since $100 is 3 times as close to $75 as it is to $175.

We can show this algebraically:
If there are A customers with plan A, and B customers with plan B, then the total revenue is $75A + $175B.
Since the average customer pays $100, we know that
$100 = ($75A + $175B) / (A + B)
$100(A + B) = ($75A + $175B)
$100A + $100B = $75A + $175B
$25A = $75B
A = 3B.

Since there are 3 times as many $75 clients as $175 clients, for every $175 received from Plan B customers, 3($75) = $225 is received from Plan A customers, and the percent of revenue from customers with Plan A is:
$225/($225 + $175) = $225/$400 = 56.25%.

The correct answer is choice (D).
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 139371 [1], given: 12787

Current Student
User avatar
S
Joined: 28 Nov 2014
Posts: 918

Kudos [?]: 230 [0], given: 79

Concentration: Strategy
Schools: Fisher '19 (M)
GPA: 3.71
Reviews Badge
Re: Each customer of a networking company subscribes to one of two plans: [#permalink]

Show Tags

New post 31 Aug 2015, 11:39
Bunuel wrote:
Bunuel wrote:
Each customer of a networking company subscribes to one of two plans: Plan A or Plan B. Plan A costs $75 per month and Plan B costs $175 per month per customer. If the company’s average revenue per customer per month is $100, then what percent of the company's revenue comes from customers with Plan A?

A. 25%
B. 30%
C. 37.5%
D. 56.25%
E. 75%

Kudos for a correct solution.


800score Official Solution:

This is a tricky weighted average problem. If there are only two price levels, $75 and $175, and the average customer pays $100, then the number of customers who pay $75 must be 3 times the number of customers who pay $175, since $100 is 3 times as close to $75 as it is to $175.

We can show this algebraically:
If there are A customers with plan A, and B customers with plan B, then the total revenue is $75A + $175B.
Since the average customer pays $100, we know that
$100 = ($75A + $175B) / (A + B)
$100(A + B) = ($75A + $175B)
$100A + $100B = $75A + $175B
$25A = $75B
A = 3B.

Since there are 3 times as many $75 clients as $175 clients, for every $175 received from Plan B customers, 3($75) = $225 is received from Plan A customers, and the percent of revenue from customers with Plan A is:
$225/($225 + $175) = $225/$400 = 56.25%.

The correct answer is choice (D).


Good Explanation Bunuel

Kudos [?]: 230 [0], given: 79

1 KUDOS received
Manager
Manager
avatar
Joined: 29 Jul 2015
Posts: 159

Kudos [?]: 202 [1], given: 59

GMAT ToolKit User
Re: Each customer of a networking company subscribes to one of two plans: [#permalink]

Show Tags

New post 01 Sep 2015, 04:51
1
This post received
KUDOS
Bunuel wrote:
Each customer of a networking company subscribes to one of two plans: Plan A or Plan B. Plan A costs $75 per month and Plan B costs $175 per month per customer. If the company’s average revenue per customer per month is $100, then what percent of the company's revenue comes from customers with Plan A?

A. 25%
B. 30%
C. 37.5%
D. 56.25%
E. 75%

Kudos for a correct solution.


This question can be easily solved by using allegation.
the ratio of plan A to plan B will be
(175-100)/(100-75) =75/25 = 3/1

for every 3 plan A there is 1 plan B
so company earns 225 from 3 plan A and 175 from 1 plan B.
total 400
revenue percent from plan A will be
(225/400)*100 = 56.25 %

Answer:- D

Kudos [?]: 202 [1], given: 59

Intern
Intern
avatar
B
Joined: 30 Jan 2017
Posts: 3

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

Re: Each customer of a networking company subscribes to one of two plans: [#permalink]

Show Tags

New post 03 Jan 2018, 06:24
consider this as a weighted mean situation:

Plan A costs: 75 & Plan B costs: 175
average costs: 100

A B
75-----------------175
100
ratio of quantities is
(175-100) : (100-75)
3 : 1

so total revenue = 3x(75) + x(175) = 400x
A's percentage = 225x/400x ----> 56.25%

Answer: D

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

Re: Each customer of a networking company subscribes to one of two plans:   [#permalink] 03 Jan 2018, 06:24
Display posts from previous: Sort by

Each customer of a networking company subscribes to one of two plans:

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.