I30-70

Question

The list below outlines the annual membership plans available at a fitness center, along with any included benefits and discounts on personal training.
 
•  Basic Plan : $100 per year with access to all standard equipment and group classes.
 
•  Silver Plan : $200 per year with access to all standard equipment, group classes, and a 10% discount on personal training sessions.
 
•  Gold Plan : $300 per year with access to all standard equipment, group classes, a 20% discount on personal training sessions, and two free personal training sessions.
 
•  Platinum Plan : $450 per year with access to all standard equipment, group classes, a 30% discount on personal training sessions, and five free personal training sessions.
 
Personal training sessions cost $80 per session.The table below shows the personal training usage and group class interest for three new gym members.
    Member   Group Classes    Personal Training Sessions       Sally   Yes   5      Ray    No   20      Mindy    Yes   10The table below shows the number of members in each membership tier during the past year, along with the total revenue generated from personal training sessions over that same period. The fitness center’s only sources of revenue are membership fees and personal training sessions.
     Tier    Members   Total Revenue from Personal Training      Basic    1,500    $40,000       Silver    200    $72,000       Gold    100    $80,000       Platinum    60    $140,000

Bunuel · Answer

Official Solution:

More revenue from personal training was generated in the Platinum tier than in all other tiers combined. 
 
Platinum: $140,000
 
Other tiers: $40,000 (Basic) + $72,000 (Silver) + $80,000 (Gold) = $192,000
 
$140,000 < $192,000 →  Answer: No 
 
 Revenue from personal training accounted for a greater share of total revenue in the Platinum tier than in the Gold tier. 
 
Platinum: Training = $140,000, Total = $167,000 → Share ≈ 80%
 
Gold: Training = $80,000, Total = $110,000 → Share ≈ 70%
 
Platinum share is higher →  Answer: Yes 
 
 For the Basic tier last year, on average, one personal training session was purchased for every three members. 
 
Basic tier had 1,500 members and $40,000 in personal training revenue.
 
Sessions = $40,000 / $80 = 500
 
1,500 members / 500 sessions = 3 members per session →  Answer: Yes

Correct answer:

More revenue from personal training was generated in the Platinum tier than in all other tiers combined.  "No"

Revenue from personal training accounted for a greater share of total revenue in the Platinum tier than in the Gold tier.  "Yes"

For the Basic tier last year, on average, one personal training session was purchased for every three members.  "Yes"

nequep · Answer

How is the total revenue calculated?

Bunuel · Answer

Total revenue means all revenue generated by that tier, not just personal training revenue.

So for each tier, add the revenue from membership fees and the revenue from personal training. For example:

Platinum total revenue = 27,000 + 140,000 = 167,000

Gold total revenue = 30,000 + 80,000 = 110,000

Varun2002 · Answer

I did not quite understand the solution. I think that the split of total revenue should be mentioned , because we can not suppose that total revenue just compose of these 2 variable, Happended with me in lot of DI question ex where i supposed that certain solution would have just these 2 variable but got rejected as nothing about the bifurcation is mentioned.

Bunuel · Answer

I clarified that issue by adding details to Tab 3 to avoid any further confusion. Thank you.

I30-70

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My Rewards

Tier	Members	Total Revenue from Personal Training
Basic	1,500	$40,000
Silver	200	$72,000
Gold	100	$80,000
Platinum	60	$140,000