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Cancellation Fees |
Days Prior to Departure | Percent of Package Price |
46 or more | 10% |
45 - 31 | 35% |
30 - 16 | 50% |
15 - 5 | 65% |
4 or fewer | 100% |
The table above shows the cancellation fee schedule that a travel agency uses to determine the fee charged to a tourist who cancels a trip prior to departure. If a tourist canceled a trip with a package price of $1,700 and a departure date of
September 4, on what day was the trip canceled?
(1) The cancellation fee was $595
(2) If the trip had been canceled one day later, the cancellation fee would have been $255 more
The table above shows the cancellation fee schedule that a travel agency uses to determine the fee charged to a tourist who cancels a trip prior to departure. If a tourist canceled a trip with a package price of $1,700 and a departure date of September 4, on what day was the trip canceled?
(1) The cancellation fee was $595.
(2) If the trip had been canceled one day later, the cancellation fee would have been $255 more.
We are given a tourist canceled a trip with a package price of $1,700 and a departure date of September 4, and we need to determine the day on which the trip was canceled.
Statement One Alone:The cancellation fee was $595.
Since we know the total price of the trip as well as the cancellation fee, we can determine the range of days prior to departure in which the trip was canceled.
(595/1700) x 100 = 35%
Thus, the trip was canceled between 31 and 45 days (inclusive) before September 4. However, we cannot determine the exact date of the cancellation. Statement one alone is not sufficient. We can eliminate answer choices A and D.
Statement Two Alone:If the trip had been canceled one day later, the cancellation fee would have been $255 more.
In the provided table, we are given the following:
Cancellation Fees |
Days Prior to Departure | Percent of Package Price |
46 or more | 10% |
45 - 31 | 35% |
30 - 16 | 50% |
15 - 5 | 65% |
4 or fewer | 100% |
We note that the customer may be subject to a penalty of 10%, 35%, 50%, 65%, or 100% of the cost of the trip ($1,700), and therefore the customer may pay $170, $595, $850, $1105, or $1700 depending on how many days prior to the trip the cancellation is made.
If the customer cancels the trip one day later, and therefore must pay the cancellation fee of the next interval, then the fee may increase as follows:
595 - 170 = $425
850 - 595 = $255
1105 - 850 = $255
or
1700 - 1105 = $595
Since there are two possibilities that may cause in an increase of $255 (31 days and 16 days prior to the departure), we cannot determine the exact date on which the trip was cancelled.
Statement two alone is not sufficient to answer the question. Eliminate answer choice B.
Statements One and Two Together:Using statements one and two, we know that the trip was canceled between 31 and 45 days (inclusive) before September 4 and that had the trip been canceled one day later, the fee would have been $255 more. From this information, we can determine that the trip was canceled 31 days before September 4, because had it been canceled 30 days before the trip, the fee would have been $1,700 x 0.5 = $850, which is $255 more than the fee of $595.
Since we know that the trip was canceled 31 days before the trip, we can determine the exact date on which it was canceled.
Answer: C