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29 Nov 2018, 04:30
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
66% (02:38) correct
34%
(02:50)
wrong
based on 560
sessions
History
Date
Time
Result
Not Attempted Yet
From the monthly planned marketing budget of a company, only 80% was utilized. From the allocated budget, for marketing, 50% was spent on advertisement, 40% of the remaining budget was spent on new business expansion and the remaining $3600 was spent on adhoc expenses. What was the total amount of planned monthly budget?
A. $10,000
B. $12,000
C. $15,000
D. $17,500
E. $20,000
A. $10,000
B. $12,000
C. $15,000
D. $17,500
E. $20,000
Chethan92
Joined: 18 Jul 2018
Last visit: 21 Apr 2022
Posts: 899
Own Kudos:
Given Kudos: 95
Location: India
Concentration: Operations, General Management
Schools: IIMB EPGP'22 (M)
GMAT 1: 590 Q46 V25
GMAT 2: 690 Q49 V34
WE:Engineering (Energy)
Products:
29 Nov 2018, 06:13
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Let the allocated budget be X.
50% spent on advertisement. Remaining is 0.5X
40% of the remaining on new business expansion 0.5X*0.4 = 0.2X. Remaining is 0.3X = 3600 = X = 12,000.
Given that only 80% was utilized.
Utilized budget = 12,000.
Planned budget = 15,000.
C is the answer.
50% spent on advertisement. Remaining is 0.5X
40% of the remaining on new business expansion 0.5X*0.4 = 0.2X. Remaining is 0.3X = 3600 = X = 12,000.
Given that only 80% was utilized.
Utilized budget = 12,000.
Planned budget = 15,000.
C is the answer.
03 Dec 2018, 02:06
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Solution
Given:
- • From the monthly planned marketing budget of a company, only 80% was utilized
• From the allocated budget, 50% spent on advertisement
• 40% of the remaining was spent on new business expansion
• Remaining $3600 was spent on ad-hoc expenses
To find:
- • The amount of planned monthly budget
Approach and Working:
Let us assume that the monthly planned budget was 100x.
Budget utilised = 80% of 100x = 80x
- • Spending on advertisement = 50% of 80x = 40x
- o Remaining budget = 80x – 40x = 40x
• Spending on new business expansion = 40% of 40x = 16x
- o Remaining budget = 40x – 16x = 24x
Given that, 24x = 3600
Or, x = \(\frac{3600}{24} = 150\)
Therefore, the total planned budget = 100x = 100 x 150 = $15,000
Hence, the correct answer is option C.
Answer: C
