In 2000, Firm DBH had a firm-wide hourly billable rate of $b.

Question

In 2000, Firm DBH had a firm-wide hourly billable rate of $$b$. In 2001, DBH billed for $q$ hours and had an hourly billable rate that was $x%$ more than in 2000. The amount of DBH's billed hours in 2000 was $x%$ of its billed hours in 2001. Which of the following represents the change, in dollars, in DBH's revenue from billed hourly services from 2000 to 2001?

(A) increase of $bq$

(B) increase of $\frac{bqx}{100}$

(C) increase of $100bq$

(D) increase of $\frac{bqx}{100} + b$

(E) decrease of $\left(\frac{bqx}{100}\right)(1+x)$

(A) increase of  bq

(B) increase of  \frac{bqx}{100}

(C) increase of  100bq

(D) increase of  \frac{bqx}{100} + b

(E) decrease of  \left(\frac{bqx}{100}\right)(1+x)

Bunuel · Accepted Answer

GMATNinja Video Solution:

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dhart · Answer

Anin 2000, amount bqx/100
2001 (b+bx/100)*q

increase in dollars = ( bq+bqx/100 - bqx/100 ) 
 
 = bq 
option A

GMATcracker101 · Answer

Break down the information -

In 2000

1. Hourly rate - b
2. Total hours - q*x/100

3. Total = 1*2 = bqx/100

In 2001

1. Hourly rate - b(1 + x/100)
2. Total hours - q

3. Total = 1*2 = bq + bqx/100

we need to find 2001 - 2000 
this is bq as bq is a positive value there is an increase hence option is (A)

horrorslive · Answer

for year 2000 
let b=10
for year 2001
let q=10 ; x%=10
so billed hourly rate for 2001 is 1.1*10=11

for year 2000
no of billed hours is x% of q ie 10% of 10= 1

revenue 2001-revenue 2000= (11*10)-10 = 10
Since revenue is increasing dont check option E substitute b=10,x=10,q=10 in options
A. 100
B. 10
C. 10^4
D. 20

A is the answer

In 2000, Firm DBH had a firm-wide hourly billable rate of $b.

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In 2000, Firm DBH had a firm-wide hourly billable rate of $b.

Prep Toolkit

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