From the monthly planned marketing budget of a company, only 80% .....

Question

From the monthly planned marketing budget of a company, only 80% was utilized. From the allocated budget, for marketing, 50% was spent on advertisement, 40% of the remaining budget was spent on new business expansion and the remaining $3600 was spent on adhoc expenses. What was the total amount of planned monthly budget?

A. $10,000
B. $12,000
C. $15,000
D. $17,500
E. $20,000

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A. $10,000
B. $12,000
C. $15,000
D. $17,500
E. $20,000

To read all our articles: Must read articles to reach Q51

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Chethan92 · Answer

Let the allocated budget be X.

50% spent on advertisement. Remaining is 0.5X
40% of the remaining on new business expansion 0.5X*0.4 = 0.2X. Remaining is 0.3X = 3600 = X = 12,000.

Given that only 80% was utilized.
Utilized budget = 12,000.
Planned budget = 15,000.

C is the answer.

EgmatQuantExpert · Answer

Solution 
  Given:  
 • From the monthly planned marketing budget of a company, only 80% was utilized
• From the allocated budget, 50% spent on advertisement
• 40% of the remaining was spent on new business expansion
• Remaining $3600 was spent on ad-hoc expenses

To find:  
 • The amount of planned monthly budget

Approach and Working:  
Let us assume that the monthly planned budget was 100x.

Budget utilised = 80% of 100x = 80x
 • Spending on advertisement = 50% of 80x = 40x
 o Remaining budget = 80x – 40x = 40x

• Spending on new business expansion = 40% of 40x = 16x
 o Remaining budget = 40x – 16x = 24x
Given that, 24x = 3600
Or, x =  \frac{3600}{24} = 150

Therefore, the total planned budget = 100x = 100 x 150 = $15,000

Hence, the correct answer is option C.

Answer: C

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navya27 · Answer

Kinshook · Answer

Given:  From the monthly planned marketing budget of a company, only 80% was utilized. From the allocated budget, for marketing, 50% was spent on advertisement, 40% of the remaining budget was spent on new business expansion and the remaining $3600 was spent on adhoc expenses.

Asked:  What was the total amount of planned monthly budget?

Let the utilized monthly budget be x.

Utilized budget = x 
Budget spent on advertisement = .5x
Remaining budget = .5x
Budget spent on business expansion = .5x *.4 = .2x
Budget spent on adhoc expenses = x - .5x - .2x = .3x = $3600
x = $12000

Planning budget = $12000/.8 = $15000

IMO C

Su1206 · Answer

I am a finance and cost management expert and I found this one very difficult as I was stumped by the term 'allocated budget'. In management accounting/ financial management, allocation never means utilization. I feel the question is unnecessarily complicated because of wrong wordings used. bb, please comment whether this type of wordplay can be expected on gmat

Mehta17 · Answer

The questions says only 80% was utilised 
so total expenses should be equated to 80%

100-50-20 =10 % 
10% =3600 instead of 30% = 3600

How can money not utilised be part of this.

natusadipisci · Answer

I agree with Su1206, its an easy question, but I feel the wording of utilised and allocated, do make this question a little weak in terms of quality

ineedbananas · Answer

I echo this can someone comment?

From the monthly planned marketing budget of a company, only 80% .....

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From the monthly planned marketing budget of a company, only 80% .....

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