Work done by A = 1200 (ie, 16*75)
Work done by B = 1080 (ie, 12*90)

Diff in work done in 8 hour workday is $120 ( Since A > B ; A works more than B)
Diff in work done in 12 hour workday is $120/8*12 = $180

Hence answer will be (B) 180
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No of returns prepared by A/hr = 16/8 = 2, no of returns in 12 hrs = 12*2 = 24

Income from 24 returns = 24*$75 = $1800

No of returns prepared by B/hr = 12/8 = 1.5, no of returns in 12 hrs = 12*1.5 = 18

Income from 18 returns = 18*$90 = $1620

Difference = $1800-$1620 = $180

HTH

Hi All,

Although the prompt does not state it, we're meant to assume a constant rate for all activities (meaning that increasing one's work time by 50% leads to an equivalent 50% increase in output). Since each worker is increasing his/her work time from 8 hours to 12 hours (which is an increase of 50%), then we're meant to assume that the number of tax returns prepared will also increase by 50%. At this point, we can do the math in a couple of different ways - you can either calculate the difference now and then increase it by 50% or increase both results by 50% and then compare the difference. Thus the two workers would earn a total of...

Tax Preparer A: (24 tax returns)($75 each) = $1800
Tax Preparer B: (18 tax returns)($90 each) = $1620

The first preparer will make $1800 - $1620 = $180 more than the second preparer.

Final Answer:

GMAT assassins aren't born, they're made,
Rich
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per day rate A ; 16/8 ; 2
and charges for 12 hrs ; 2*12 * 75= 1800
for B ; 12/8 * 12 = 18
charges 12 hr s; 18 * 90 = 1620
difference ; 1800-1620; 180 $
IMO B

Tax guy B does 3/4 of the work and charges 6/5 so his total income = (3/4)*(6/5) = 9/10 of tax guy A.

So (1/10)th of income of A will be extra.

Income of A in 12 hrs = 24*75

Extra income of A = 24*75/10 = $180

Answer (B)
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