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# In order to increase revenues, an airport plans to change

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Manager
Joined: 13 Aug 2009
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WE 1: 4 years in IT
In order to increase revenues, an airport plans to change [#permalink]

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02 Apr 2010, 00:51
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Difficulty:

5% (low)

Question Stats:

84% (01:21) correct 16% (01:51) wrong based on 142 sessions

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In order to increase revenues, an airport plans to change the parking fees it charges at its hourly parking lots. Rather than charging \$2.00 for the first two-hour period, or part thereof, and \$1.00 for each hour thereafter, the airport will charge \$4.00 for the first four-hour period, or part thereof, and \$1.00 for each hour thereafter.
Which of the following is a consideration that, if true, suggest that the plan will be successful in increasing revenues?
(A) Very few people who park their cars at the hourly parking lot at the airport leave their cars for more than two hours at a time.
(B) Over the past several years, the cost to the airport of operating its hourly parking facilities has been greater than the revenues it has received from them.
(C) People who leave their cars at the airport while on a trip generally park their cars in lots that charge by the day rather than by the hour.
(D) A significant portion of the money spent to operate the airport parking lot is spent to maintain the facilities rather than to pay the salaries of the personnel who collect the parking fees.
(E) The hourly parking lots at the airport have recently been expanded and are therefore rarely filled to capacity.

[Reveal] Spoiler:
OA--A
[Reveal] Spoiler: OA

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Senior Manager
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Re: In order to increase revenues, an airport plans to change [#permalink]

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02 Apr 2010, 01:11
I think it's A.

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Manager
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Re: In order to increase revenues, an airport plans to change [#permalink]

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03 Apr 2010, 22:41
Ans : A.

its very clear,while looking to the fromer and latter rates,if a car is parked for more than 3hrs,then there's no change in wat customer pays now as parking fees.
but if most cust parks for less than or equal to 2hrs,then according to prev plan it will collect jus 2\$,but the new plan will make cust to pay 4\$...thereby collecting 2\$ more on each cust.

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Manager
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Re: In order to increase revenues, an airport plans to change [#permalink]

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04 Apr 2010, 02:24
A no problem

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Manager
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WE 1: 3 (Mining Operations)
Re: In order to increase revenues, an airport plans to change [#permalink]

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09 Apr 2010, 12:59
Clean A...
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Re: In order to increase revenues, an airport plans to change [#permalink]

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09 Apr 2010, 13:10
should be (A).

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Intern
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Re: In order to increase revenues, an airport plans to change [#permalink]

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10 Apr 2010, 11:45
A
(A) Very few people who park their cars at the hourly parking lot at the airport leave their cars for more than two hours at a time. (which means many people leave their car at the parking lot for 2 or less than 2 hours. This would generate \$4 revenue for airport for each such car parked instead of \$2 as per earlier plan. Thus increasing revenues. And when car is parked for more than 2 hours the revenue generated would be same in both the plans.)
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Re: In order to increase revenues, an airport plans to change [#permalink]

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05 Mar 2017, 22:31
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).

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Re: In order to increase revenues, an airport plans to change   [#permalink] 05 Mar 2017, 22:31
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