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. https://gmatclub.com/forum/download/file.php?mode=view&id=73051SkySoarer has conducted research to determine the merits of adding a single new flight line with direct flights in both directions between two currently serviced cities. 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%. The table shows information about each of the five proposed flight lines that have been researched by SkySoarer. https://gmatclub.com/forum/download/file.php?mode=view&id=73052 Tav 1.jpg Tab 2.jpg

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SkySoarer Airlines currently offers flights with service to a total of

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kaustubhkohli12

Joined: 25 Jul 2023

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Updated on: 25 Jul 2026, 07:39

Originally posted by kaustubhkohli12 on 25 Jul 2026, 05:02.
Last edited by Bunuel on 25 Jul 2026, 07:39, edited 1 time in total.

MartyMurray

For question 2 , why we don't have to consider implimentation cost ?

MartyMurray

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

Show Spoiler

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

Show Spoiler

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 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

Show Spoiler

Line AD

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MartyMurray

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26 Jul 2026, 17:11

kaustubhkohli12

MartyMurray

For question 2 , why we don't have to consider implimentation cost ?

Question 2 is about "total annual revenue."

Annual revenue is not affected by a "one-time" implementation cost.

In fact, in general, we can say that revenue is not affected by costs, at least not in a simple scenario like the one presented by this prompt.

Revenue - Costs = Profit

So, if we're keeping things relatively simple, we can say that profit, but not revenue, is affected by costs.

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egmat

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29 Jul 2026, 09:47

Hi kaustubhkohli12,

Good question. This is exactly the kind of trap MSR sets: the table on Tab 2 (New Flight Lines) gives you four columns - flight time, one-time implementation cost, and annual revenue - but Q2 only asks about one of them.

Read what Q2 actually measures

Q2 asks whether implementing the line would "increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million." The measuring stick is annual revenue only. So the two numbers that matter are:

- the new line's projected annual revenue (Tab 2), and
- the 10% revenue reduction on the existing lines that share a terminus (rule on Tab 2 + revenue figures on Tab 1).

The implementation cost is a different kind of number entirely. It's a one-time expense, not a change in yearly revenue. Adding it into a revenue calculation would be mixing two mismatched quantities - like subtracting a one-time bill from a yearly income figure. Q2 never asks about profit or net cost, so that column simply isn't part of this question.

Where cost does matter

Notice the contrast with Q3, which explicitly sets a "$13 million budget" - that's the question where the implementation-cost column comes into play. The test deliberately puts extra columns on the tab so that each question can pull only the ones it needs. Your job is to match the question's wording to the right column and ignore the rest.

So for Q2: use revenue in, revenue out - cost stays on the shelf until a question actually asks about a budget or spending.

Quick habit to lock this in: before you calculate, underline the exact quantity the question names ("annual revenue"), and only touch columns that measure that quantity.

Answer: Yes, Yes, No

kaustubhkohli12

MartyMurray

For question 2 , why we don't have to consider implimentation cost ?

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egmat

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30 Jul 2026, 08:16

Hi nandini14,

Great question, and it comes down to what "shares a terminus" actually means in the setup.

The rule (from the New Flight Lines tab) is: adding a new line cuts revenue by 10% only on the lines that share a terminus with the new line. A terminus is one of the new line's two endpoint cities - nothing more. So for a proposed line, you look at each of its two cities and count only the existing lines that literally touch one of those two cities.

Take Line AD (the case in Q2). Its two termini are A and D:
- Lines touching A: A-B ($33.1M) and A-C ($18.7M)
- Lines touching D: B-D ($18.1M)

Now look at the two lines you asked about, both from the Current Flights diagram:
- B-C ($27.3M) - its endpoints are Bionia and Cordell. Neither is A or D, so it does not share a terminus with AD - not affected.
- C-E ($17.6M) - its endpoints are Cordell and Epster. Again, neither is A or D - not affected.

The trap is thinking in terms of the network - "A connects to C, and C connects to B and E, so those matter too." But the reduction isn't about routes or reachability; it's only about lines that end at one of the new line's two cities. B-C and C-E don't end at A or D, so they're untouched.

Quick way to lock it in: picture a hub at just city A. Only the spokes plugged into A lose revenue. A line sitting two hops away, between two other cities, never plugs into A - so it's out. Apply that same "does it plug into A or D?" test to every existing line and you'll always pick the right set.

Answer: Yes, Yes, No

nandini14

KarishmaB

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

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07 Aug 2026, 02:07

For the first question, why is it that we rake annual revenue and not annual revenue adjusted for one time cost, since the question mentions "total revenue"?

ManishaPrepMinds

1)

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

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

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

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07 Aug 2026, 02:32

abhikc3004

For the first question, why is it that we rake annual revenue and not annual revenue adjusted for one time cost, since the question mentions "total revenue"?

In this type of simple context, cost does not affect revenue.

Revenue is simply incoming funds.

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