GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 18 Dec 2018, 03:09

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

## Events & Promotions

###### Events & Promotions in December
PrevNext
SuMoTuWeThFrSa
2526272829301
2345678
9101112131415
16171819202122
23242526272829
303112345
Open Detailed Calendar
• ### Happy Christmas 20% Sale! Math Revolution All-In-One Products!

December 20, 2018

December 20, 2018

10:00 PM PST

11:00 PM PST

This is the most inexpensive and attractive price in the market. Get the course now!
• ### Key Strategies to Master GMAT SC

December 22, 2018

December 22, 2018

07:00 AM PST

09:00 AM PST

Attend this webinar to learn how to leverage Meaning and Logic to solve the most challenging Sentence Correction Questions.

# V01-07

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 51281

### Show Tags

16 Sep 2014, 00:54
00:00

Difficulty:

(N/A)

Question Stats:

70% (01:47) correct 30% (01:00) wrong based on 67 sessions

### HideShow timer Statistics

During a single hour of a pledge drive for a public radio station, anyone making a pledge of a stated amount was given a free gift. Pledges were encouraged by the announcement that the retail cost of the gift was equal to the amount of the pledge. Yet, at the end of the hour, the total money raised from pledges accounted for a larger dollar amount than the amount organizers had paid for all the free gifts.

Which of the following, if true, is the best explanation for the fact that funds raised from pledges during the hour accounted for more money than the cost of the free gifts?

A. The cost of postage was included in the total cost assigned to the gifts, making them seem more expensive to potential donors.
B. Organizers underestimated the amount of money that would be raised during the hour and were surprised by the actual total of pledges.
C. Organizers overestimated the number of donors who would respond to the offer and were forced to offer gifts at half price when there were fewer pledges than expected.
D. Half of the free gifts were sponsored by the companies from which they were purchased.
E. More money was raised during this hour than during the previous three hours, driving down the average out-of-pocket cost of the free gifts.

_________________
Math Expert
Joined: 02 Sep 2009
Posts: 51281

### Show Tags

16 Sep 2014, 00:54
Official Solution:

During a single hour of a pledge drive for a public radio station, anyone making a pledge of a stated amount was given a free gift. Pledges were encouraged by the announcement that the retail cost of the gift was equal to the amount of the pledge. Yet, at the end of the hour, the total money raised from pledges accounted for a larger dollar amount than the amount organizers had paid for all the free gifts.

Which of the following, if true, is the best explanation for the fact that funds raised from pledges during the hour accounted for more money than the cost of the free gifts?

A. The cost of postage was included in the total cost assigned to the gifts, making them seem more expensive to potential donors.
B. Organizers underestimated the amount of money that would be raised during the hour and were surprised by the actual total of pledges.
C. Organizers overestimated the number of donors who would respond to the offer and were forced to offer gifts at half price when there were fewer pledges than expected.
D. Half of the free gifts were sponsored by the companies from which they were purchased.
E. More money was raised during this hour than during the previous three hours, driving down the average out-of-pocket cost of the free gifts.

Situation: Organizers of a public radio fund drive find that they have received more money in pledges than they must pay for free gifts they send to donors.

Reasoning: Which is the best explanation for the excess in money? Because the retail cost of the gift and the amount each donor’s pledge are assumed to be equal, it is expected that organizers will not see a net gain in funds during this hour. It is important to note, however, that the amounts of money being compared are the pledge amount and the retail cost of the free gifts. If organizers do not spend the enitre money on the free gifts they send to donors, a certain amount of the pledges received during the hour represent a net gain.
1. Choice A : Whether the gifts seem more expensive has no impact on the net amount raised during the hour.
2. Choice B : The organizers’ surprise may influence their perceptions of the amount of money raised, but would not influence an actual count.
3. Choice C : Free gifts are not being sold in the passage, and therefore can not be offered at half price.
4. Choice D : Correct - If only half of the cost of the gifts need to be subtracted from the dollar amount raised during the hour, half of the pledges count as net gain and represent a larger dollar amount than the total retail price of all gifts.
5. Choice E : The amount of money raised during previous hours has no bearing on the situation described in the passage.

_________________
Intern
Joined: 16 Feb 2013
Posts: 18
Location: India
GMAT 1: 630 Q44 V35
GPA: 3.57

### Show Tags

02 Dec 2015, 10:03
the choice D is not properly sentenced . It should be 'Few' Free gifts were donated by a sponsor, eliminating the need to subtract the cost of them from the total money raised through pledges. The word 'few' makes sense in totality or else the choice d seems to make no sense.
Accepting the sentence as it is may contradict the premise given in the question which says ''organizers had paid for all the free gifts ".

Please correct if my understanding is wrong ?
Founder
Joined: 04 Dec 2002
Posts: 16988
Location: United States (WA)
GMAT 1: 750 Q49 V42
GPA: 3.5

### Show Tags

02 Dec 2015, 10:58
jevish wrote:
the choice D is not properly sentenced . It should be 'Few' Free gifts were donated by a sponsor, eliminating the need to subtract the cost of them from the total money raised through pledges. The word 'few' makes sense in totality or else the choice d seems to make no sense.
Accepting the sentence as it is may contradict the premise given in the question which says ''organizers had paid for all the free gifts ".

Please correct if my understanding is wrong ?

The word FEW would imply that only a small portion of the gifts were donated, and that the radio station would have to have paid for them out of pocket and thus would end up spending almost as much as the amount of donations, thus making D not the best choice. It would be a draw between A and D in that case.
_________________

Founder of GMAT Club

Just starting out with GMAT? Start here...
OG2019 Directory is here!
Want to know application stats & Profiles from last year? Check the Decision Tracker

Co-author of the GMAT Club tests

Intern
Joined: 16 Feb 2013
Posts: 18
Location: India
GMAT 1: 630 Q44 V35
GPA: 3.57

### Show Tags

02 Dec 2015, 11:45
thanks for quick response.

I'm not sure if this question is correct as answer can never contradict the premise .
Intern
Joined: 31 Jul 2015
Posts: 33
Location: India

### Show Tags

13 Jul 2016, 05:28
1
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate.
Choice D , which says that a part of the gifts are sponsored by the companies from which they have purchased- tells us that they have made a profit . This in NO way says that the amount paid during the hour or the pledged amount is more than the cost of the gift.
In simple words , option A - says that Selling Price (SP) is more than the Cost Price (CP).
But Option D - says that the actual CP is less than the CP of all the gifts.
I hope I'm able to explain what I wanted to.
So, option A should be the right answer.
Thanks
_________________

Never give up !

Retired Moderator
Joined: 14 Dec 2013
Posts: 2948
Location: Germany
Schools: German MBA
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)

### Show Tags

13 Jul 2016, 19:29
urhowig wrote:
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate.
Choice D , which says that a part of the gifts are sponsored by the companies from which they have purchased- tells us that they have made a profit . This in NO way says that the amount paid during the hour or the pledged amount is more than the cost of the gift.
In simple words , option A - says that Selling Price (SP) is more than the Cost Price (CP).
But Option D - says that the actual CP is less than the CP of all the gifts.
I hope I'm able to explain what I wanted to.
So, option A should be the right answer.
Thanks

There are 3 parties invloved here.

The sellers of the gift
The organisers of the programs
The pledgers.

Option D:
The cost price of the sellers of the gifts does not come in the question. Suppose the selling price (retail price) of the gifts (from sellers) is \$x and the sellers sold n gifts to the organisers and sponsored n gifts. This implies that the organisers had to pay \$nx, whereas the organisers received 2n number of gifts.

Now the pledgers made 2n number of pledges. The money received from each pledge is \$x (= retail price of the gifts). Thus total money received by the orgnaisers from the pledgers is \$2nx.

Thus the amount paid by organisers is \$2nx and pays an amount of \$nx.

Option A:
The postage cost was included in \$x; nonetheless the organisers had to pay this postage cost to the sellers.
Intern
Joined: 31 Jul 2015
Posts: 33
Location: India

### Show Tags

13 Jul 2016, 21:10
sayantanc2k wrote:
urhowig wrote:
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate.
Choice D , which says that a part of the gifts are sponsored by the companies from which they have purchased- tells us that they have made a profit . This in NO way says that the amount paid during the hour or the pledged amount is more than the cost of the gift.
In simple words , option A - says that Selling Price (SP) is more than the Cost Price (CP).
But Option D - says that the actual CP is less than the CP of all the gifts.
I hope I'm able to explain what I wanted to.
So, option A should be the right answer.
Thanks

There are 3 parties invloved here.

The sellers of the gift
The organisers of the programs
The pledgers.

Option D:
The cost price of the sellers of the gifts does not come in the question. Suppose the selling price (retail price) of the gifts (from sellers) is \$x and the sellers sold n gifts to the organisers and sponsored n gifts. This implies that the organisers had to pay \$nx, whereas the organisers received 2n number of gifts.

Now the pledgers made 2n number of pledges. The money received from each pledge is \$x (= retail price of the gifts). Thus total money received by the orgnaisers from the pledgers is \$2nx.

Thus the amount paid by organisers is \$2nx and pays an amount of \$nx.

Option A:
The postage cost was included in \$x; nonetheless the organisers had to pay this postage cost to the sellers.

Hi,
I think I misunderstood the last line of the argument.
_________________

Never give up !

Senior Manager
Joined: 29 Jun 2017
Posts: 467
GPA: 4
WE: Engineering (Transportation)

### Show Tags

30 Dec 2017, 13:24
I think this is a high-quality question and I agree with explanation. Kindly change the topic to Resolve the Paradox.
_________________

Give Kudos for correct answer and/or if you like the solution.

Intern
Joined: 11 Jun 2015
Posts: 19
Location: Iran (Islamic Republic of)
Concentration: Accounting, Finance
WE: Education (Education)

### Show Tags

28 Oct 2018, 06:55
"free gifts" has redundancy issue.
a "Gift" is free, so we do not need "free" as an adjective.
Re: V01-07 &nbs [#permalink] 28 Oct 2018, 06:55
Display posts from previous: Sort by

# V01-07

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

Moderators: chetan2u, Bunuel

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.