SkySoarer Airlines currently offers flights with service to a total of

Question

SkySoarer Airlines currently offers flights with service to a total of five cities: Abron, Bionia, Cordell, Dewark, and Epster. In the diagram, circles represent the five cities. Each line connecting two circles is a flight line that represents all the direct flights currently offered between the two corresponding cities, each of which is called a terminus for all flights represented by the line. Flights are offered in both directions for each flight line in the diagram, and all flights currently offered by SkySoarer are represented in the diagram. The label for each flight line shows the duration, in minutes, of each of the flights between the two cities the line connects, followed by the average annual revenue, in millions of dollars, generated by all SkySoarer flights between the two cities.

If a direct flight is not available between a passenger's departure city and destination city, SkySoarer passengers may take a sequence of flights to arrive at their destination. The total flight time for such a trip is the sum of the durations of all flights on the trip.

MartyMurray · Accepted Answer

Explanation for Question 1

1. SkySoarer has decided its new flight line should have a projected annual revenue of more than $20 million. The implementation of the line should also make it possible to travel between any two of the currently serviced cities by taking at most two flights. For each of the following proposed new lines, if, based on the information provided, the line satisfies these requirements, select Yes. Otherwise, select No.

Line AD

To see whether line AD satisfies the two requirements, we can first go to tab New Flight Lines to see whether the line has a projected annual revenue of more than $20 million. Checking the table, we see that AD has a projected annual revenue of $20.1 million. So, AD satisfies the first requirement.

Then, to see whether AD satisfies the second requirement by making it possible to travel between any two of the currently serviced cities by taking at most two flights, we can go to the diagram on tab Current Flights to see what happens to the routes if we add a direct flight between Abron and Dewark.

Doing so, we see that with a direct flight between Abron and Dewark, traveling from Epster to Dewark still requires taking three flights. So, line AD does not satisfy the second requirement.

Select  No .

Line BE

To see whether line BE satisfies the first requirement, we check the table on tab New Flight lines and find that BE has a projected annual revenue of $18.8 million. That's less than $20 million. So, line BE does not satisfy the first requirement.

Select  No .

Line DE

To see whether line DE satisfies the first requirement, we check the table on tab New Flight lines and find that DE has a projected annual revenue of $29.1 million. That's more than $20 million. So, line DE satisfies the first requirement.

To see whether DE satisfies the second requirement, we go to the diagram on tab Current Flights to see what happens to the routes if we add a direct flight between Dewark and Epster.

Doing so, we see that with a direct flight between Dewark and Epster, traveling from any of the cities to any other takes at most two flights. That it does is pretty straightforward to see since, with a direct line between Dewark and Epster, the pentagon of flight lines is connected on all five sides. So, any city is at most three sides away from any other city in one direction and two sides away from the same city in the other direction. So, line DE satisfies the second requirement as well.

Select  Yes .

Correct Answer   No, No, Yes

Explanation for Question 2

2. For each of the following proposed new flight lines, select Yes if, based on the information provided, implementing the line would increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million. Otherwise, select No.

Line AD

To see whether the addition of this line would increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million, we can check the parts of the provided information that involve revenue.

First, let's find the projected revenue for line AD in the table on tab New Flight Lines. It's $20.1 million.

Our job isn't done yet though since tab New Flight Lines also provides the following information:

SkySoarer has projected that adding a new line while making no other changes will reduce the annual revenue provided by all flight lines that share a terminus with the new line by 10%.

So, we have to determine the total reduction in revenue for the current flight lines to Abron and Dewark. We can find that information on the diagram on tab Current Flights.

Abron to Bionia: 33.1; 10% of 33.1 is approximately 3.3

Abron to Cordell: 18.7; 10% of 18.7 is approximately 1.9

Dewark to Bionia: 18.1; 10% of 18.1 is approximately 1.8

3.3 + 1.9 + 1.8 = 7

20.1 - 7 = 13.1

Since 13.1 is significantly greater than 10, we don't have to worry about the fact that we rounded when calculating the 10% reductions since we can tell that adding this line will for sure increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million.

Select  Yes 
 
 Line AE

From tab New Flight lines, the projected annual revenue for this line is $17.2 million.

The reduction in revenue for other lines resulting from the addition of this line can be calculated as follows:

Abron to Bionia: 33.1; 10% of 33.1 is approximately 3.3.

Abron to Cordell: 18.7; 10% of 18.7 is approximately 1.9.

Epster to Cordell: 17.6; 10% of 17.6 is approximately 1.8.

3.3 + 1.9 + 1.8 = 7

17.2 - 7 = 10.2

10.2 is greater than 10, and we rounded up when calculating 10% of 18.7 and 17.6. So, even though we rounded, we can be confident that the addition of this line will result in a net increase in revenue of more than $10 million.

Select  Yes .
 
 Line BE

From tab New Flight lines, the projected annual revenue for this line is $18.8 million.

The reduction in revenue for other lines resulting from the addition of this line can be calculated as follows:

Bionia to Abron: 33.1; 10% of 33.1 is approximately 3.3.

Bionia to Cordell: 27.3; 10% of 27.3 is approximately 2.7.

Bionia to Dewark: 18.1; 10% of 18.1 is approximately 1.8.

Epster to Cordell: 17.6; 10% of 17.6 is approximately 1.8.

3.3 + 2.7 + 1.8 + 1.8 = 9.6

18.2 - 9.6 = 8.6

8.6 is significantly less than 10. So, even though we rounded when calculating the 10% reductions, we can be confident that the addition of this line will NOT result in a net increase in revenue of more than $10 million.

Select  No .

Correct Answer   Yes, Yes, No

Explanation for Question 3

3. SkySoarer would like to add a new flight line that decreases the minimum total flight time for a trip between Cordell and Dewark. An implementation budget for the new line has been set at $13 million. Based on the information provided, which of the following lines, if implemented, would minimize the total flight time between Cordell and Dewark within the budget constraint?
Line AD

Line AD
 
Line AE
 
Line BE
 
Line CD
 
Line DE

To narrow down our choices, we can first eliminate any of the lines that have implementation budgets over $13 million since doing so is simple.

Checking the table on tab New Flight lines, we see that BE and CD have implementation budgets over $13 million. So, we can eliminate those two and are left with AD, AE, and DE.

Now, since the addition of the new line must reduce the minimum total flight time for a trip between Cordell and Dewark, let's see what the current minimum flight time for a trip between Cordell and Dewark is.

Since the only flight into Dewark is the one from Bionia, we know that the 78 minutes for a trip from Bionia to Dewark must be included in the trip from Cordell to Dewark. Then, the quickest way to get from Cordell to Bionia is to take the direct flight between the two cities, which takes 96 minutes. So, currently, the minimum total flight time from Cordell to Dewark is 78 + 96 = 174 minutes.

Now let's check what happens when we add each of the possible lines.

Line AD

From the diagram on tab Current Flights, 63 minutes from Cordell to Abron

From the table on tab New Flight lines, 85 minutes to get from Abron to Dewark

85 + 63 = 148

148 is less than 174. So, the addition of this line decreases the minimum total flight time for a trip between Cordell and Dewark. However, the question asks which line "would  minimize  the total flight time between Cordell and Dewark." So, we may need to find the shortest route, the one that actually minimizes the time. It may be that the question isn't worded ideally, and really we just need to find a route that's shorter than the current shortest route, but let's check the other two remaining choices to see what we get.

Keep.

Line AE

Adding a line from Abron to Epster does not help at all with getting from Cordell to Dewark.

Eliminate.

Line DE

Adding a line from Dewark to Epster allows us to get from Cordell to Dewark in the following amount of time.

From the diagram on tab Current Flights, 57 minutes from Cordell to Epster

From the table on tab New Flight lines, 174 minutes to get from Epster to Dewark

Without doing any math, we can tell that 57 + 174 is greater than the current minimum total flight time of a trip from Cordell to Dewark of 174 minutes.

So, the addition of line DE does not shorten the time required for traveling from Cordell to Dewark.

Eliminate.

Correct Answer   Line AD

ManishaPrepMinds · Answer

1) 
 
Revenue Condition: Annual revenue > $20 million 
 Connectivity Condition:  Travel between ANY two cities using at most 2 flights

Line   
  P rojected Annual  Revenue (>$20M)   
   
Connectivity  between any two cities (≤2 flights )
    
   Answer   
 
  AD  
 $20.1M > $20M  
 Epster→Dewark still 3 flights ( E→C→B→D) 
  NO   (fails second requirement)  
 
  BE  
 $18.8M < $20M  
  fails first requirement   
  NO   ( fails first requirement)   
 
  DE  
 $29.1M > $20M  
 all pairs ≤2 flights  
  YES

2)

Flight Line   
  Proposed Revenue

Revenue Loss (10% of  the annual revenue provided by all flight lines that share a terminus  )
   
   Net Revenue    
   >$10M?  
   Answer   
 
   AD  
 $20.1M  
  10% of ($33+$19 +$18) = $7M  
 $20.1 - $7 = $13.1M  
 YES 
  YES   
 
  AE 
 $17.2 
 10% of ( $33+$18+17) = 7M 
 $17.2 - $7 =10.2M 
 YES 
  YES   
 
  BE  
 $18.8 
 10% of (33 +18 +27 +17) =9.6M 
 $18.8 - 9.6 =9.2M  
  NO   
  NO

3)  
Eliminate anything >$13M(  implementation budget) 
 Eliminate Flight lines  
 BE ($15.4M)  
 CD ($20.1M) 
 
  Remaining:  AD, AE, DE  
 total flight time between Cordell and Dewark 
 Cordell → Bionia → Dewark = 96 + 78 =  174 minutes

Lines, if implemented, would minimize the total flight time between Cordell and Dewark   
 AD: Creates New Route C->A→D = 63+85 = 148 min  
 AE: Doesn't help to create new Route  
 DE :  Creates New Route C→E→D= 57+174 = 231 min

Answer: Line AD

JoeAa · Answer

Can I understand from you why Q2, say if we are looking at AD,
Why do we have to consider AC? Shouldn't we look at AB, BD is already ok? It's gonna be a detour of AC, CB and BD?
Also if we are considering AC, why BC is omitted?

Same concept for BE - why do we need to consider BA?

chetan2u · Answer

Any line would result in a decrease of 10% in revenue at the terminals.

So line AD would mean that revenue generated from all flights converging at A and D would reduce by 10%.
A is connected to B and C, so reduction in revenue from line AB and AC.
D is connected to B alone, so reduction in revenue from line DB.

Similarly for all lines.

JoeAa · Answer

Can direct me where I can see I should include AC in the passage?  Also if so why BC we shouldn't count as well? 
I am super confused as to why we have to count AC, I mean really if this is a real biz it doesn't make any sense. And even if not, by playing counting all routes A can be linked then why BC is not included?

YashYashkratos · Answer

i am confused what exactly is a terminus or termini.

chetan2u · Answer

Terminus is start point or end point of a way. It could be railway terminal or airport terminal. 
Termini is nothing but plural of terminus.

Posted from my mobile device

Aprillingling1 · Answer

Hi JoeAa, I had the same confusion before,I think I can explain why now. As the argument say:SkySoarer has projected that adding a new line while making no other changes will reduce the annual revenue provided by all flight lines that share a terminus with the new line by 10%.. So we need to calculate all airlines shared the same terminus.And In real biz,it exactly make sense, if we add AD, the airport A service level unchanged (or we can say the ability to afford the same flights quantity ),so it may influence the other flight which also via airport A decrease.

Posted from my mobile device

Gemmie · Answer

1. SkySoarer has decided its new flight line should have a projected annual revenue of more than $20 million. The implementation of the line should also make it possible to travel between any two of the currently serviced cities by taking at most two flights. For each of the following proposed new lines, if, based on the information provided, the line satisfies these requirements, select Yes. Otherwise, select No.

(i) Only travelling from D to E is now requiring >2 flights

(ii) Annual revenue > $20M
=> Lines AD, CD, DE

AD: No (D to E still requires 3 flights => No)

BE: No (not meeting $20M revenue requirement)

DE: Yes
+ $20M revenue requirement: yes
+ There is now a direct flight between D & E

2. For each of the following proposed new flight lines, select Yes if, based on the information provided, implementing the line would increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million. Otherwise, select No.

Line AD => Yes
AD's revenue: $20.1 => Reduction must be < $10.1
+ Total revenue related to A: 33.1 + 18.7 = 51.8 => 10%: 5.18
+ Total revenue related to D: 18.1 => 10%: 1.81
==> Total reduction: 5.18 + 1.81 < 10.1

Line AE => Yes
AE's revenue: $17.2 => Reduction must be < $7.2
+ Total revenue related to A: 33.1 + 18.7 = 51.8 => 10%: 5.18
+ Total revenue related to E: 17.6 => 10%: 1.76
==> Total reduction: 5.18 + 1.76 < 7.2

Line BE => No
AE's revenue: $18.8 => Reduction must be < $8.8
+ Total revenue related to B: 33.1 + 18.1 + 27.3 = 78.5 => 10%: 7.85
+ Total revenue related to E: 17.6 => 10%: 1.76
==> Total reduction: 7.85 + 1.76 > 8.8

3. SkySoarer would like to add a new flight line that decreases the minimum total flight time for a trip between Cordell and Dewark. An implementation budget for the new line has been set at $13 million. Based on the information provided, which of the following lines, if implemented, would minimize the total flight time between Cordell and Dewark within the budget constraint?
Line AD

Set up budget = 13
=> Line AD, AE and DE

Current flights from C to D:
+ C-B-D
+ C- A-B-D

(i) AD: 85
C to D: C-A-D: 63 + 85 = 148

(ii) AE: Won't create any new flight arrangment

(iii) DE: 174 (too long, already >148 compared to option AD)

bdefeo · Answer

Why does question 2 not include the implementation cost?

KarishmaB · Answer

Because it talks about only annual revenue, not costs.

user1937 · Answer

What is an acceptable total time for this MSR? Experts, please advice.

KarishmaB · Answer

7-8 mins is fine for the 3 questions. That gives you about 2 mins to evaluate the tab content and about 2 mins per question.

KarishmaB · Answer

2. For each of the following proposed new flight lines, select Yes if, based on the information provided, implementing the line would increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million. Otherwise, select No.
  
 We are given that adding a new line will reduce the annual revenue provided by all flight lines that share a terminus with the new line by 10%. For each line, we will check whether the additional revenue of the line compensates for reduction of 10% in existing lines of the two termini and still leaves more than 10 million extra.

AD

Additional Revenue - 20
Reduction in Revenue - 3.3 + 1.87 + 1.8 = Less than 10
So more than 10 million will be extra.
 Select YES

AE

Additional Revenue - 17
Reduction in Revenue - 3.3 + 1.87 + 1.76 = 6.9
So just a bit more than 10 million will be extra.
 Select YES

BE

Additional Revenue - 18.8
Reduction in Revenue - 3.3 + 2.73 + 1.8 + 1.76 = More than 9
Less than 10 million will be extra.
 Select NO

MegB07 · Answer

Hey, in Q2 I dont understand why cant we add all and take 10% of the total. For instance

Line AE => Yes
AE's revenue: $17.2 => Reduction must be < $7.2
+ Total revenue related to A: 33.1 + 18.7 = 51.8 => 10%: 5.18
+ Total revenue related to E: 17.6 => 10%: 1.76
==> Total reduction: 5.18 + 1.76 < 7.2

Cant we do total revenue to A and E and then take 10%?

Bunuel · Answer

Yes, you can add all the lines related to A and E and then calculate 10% of that combined total. There’s nothing wrong with that approach.

GarvitGoel · Answer

Hi BB & Bunuel,

While attempting the official mock there were 3 new questions which appeared on that mock, which are not updated on GMAT club.

Requesting you to please update as well.

PFA the SS.

Bunuel · Answer

That question is posted  HERE . Thank you!

nandini14 · Answer

KarishmaB

Why didn't we consider B to C or C to E

SkySoarer Airlines currently offers flights with service to a total of

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Line	Projected Annual Revenue (>$20M)	Connectivity between any two cities (≤2 flights )	Answer
AD	$20.1M > $20M	Epster→Dewark still 3 flights ( E→C→B→D)	NO (fails second requirement)
BE	$18.8M < $20M	fails first requirement	NO ( fails first requirement)
DE	$29.1M > $20M	all pairs ≤2 flights	YES

Flight Line	Proposed Revenue	Revenue Loss (10% of the annual revenue provided by all flight lines that share a terminus )	Net Revenue	>$10M?	Answer
AD	$20.1M	10% of ($33+$19 +$18) = $7M	$20.1 - $7 = $13.1M	YES	YES
AE	$17.2	10% of ( $33+$18+17) = 7M	$17.2 - $7 =10.2M	YES	YES
BE	$18.8	10% of (33 +18 +27 +17) =9.6M	$18.8 - 9.6 =9.2M	NO	NO

GMAT Multi-Source Reasoning (MSR) Questions

SkySoarer Airlines currently offers flights with service to a total of

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