Last visit was: 24 Apr 2026, 05:11 It is currently 24 Apr 2026, 05:11
Home
Messages
Tests
Schools
Events
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
avatar
PareshGmat
avatar
Joined: 27 Dec 2012
Last visit: 10 Jul 2016
Posts: 1,531
Own Kudos:
8,272
 [22]
Given Kudos: 193
Status:The Best Or Nothing
Location: India
Concentration: General Management, Technology
WE:Information Technology (Computer Software)
Posts: 1,531
Kudos: 8,272
 [22]
A businessman earns $27800 in December, thus decreasing his 18 Aug 2014, 02:58
2
Kudos
Add Kudos
20
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

95% (hard)

Question Stats:

47% (02:28) correct 53% (02:39) wrong based on 281 sessions

History

Date
Time
Result
Not Attempted Yet
A businessman earns $27800 in December, thus decreasing his average annual (January to December) earnings by $1200. His average annual earnings would be

A: $29000

B: $33500

C: $40200

D: $41000

E: $42300

Source: CMAT Preparation
ShowHide Answer
Official Answer
D
Most Helpful Reply
User avatar
KarishmaB
User avatar
Joined: 16 Oct 2010
Last visit: 23 Apr 2026
Posts: 16,442
Own Kudos:
79,401
 [7]
Given Kudos: 485
Location: Pune, India
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 16,442
Kudos: 79,401
 [7]
A businessman earns $27800 in December, thus decreasing his 18 Aug 2014, 21:43
6
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
PareshGmat
A businessman earns $27800 in December, thus decreasing his average annual (January to December) earnings by $1200. His average annual earnings would be

A: $29000

B: $33500

C: $40200

D: $41000

E: $42300

Source: CMAT Preparation
Show more

Had he earned the previous average in Dec too, the average would have stayed same. To bring down the average earning by $1200, the December earning needs to account for -1200 of all 12 months i.e. it must be 1200*12 = 14400 less than previous average.
So previous average = 27,800 + 14400 = 42,200
So now the average of the year would be 42,200 - 1200 = 41000

Answer (D)
avatar
PareshGmat
avatar
Joined: 27 Dec 2012
Last visit: 10 Jul 2016
Posts: 1,531
Own Kudos:
8,272
 [6]
Given Kudos: 193
Status:The Best Or Nothing
Location: India
Concentration: General Management, Technology
WE:Information Technology (Computer Software)
Posts: 1,531
Kudos: 8,272
 [6]
A businessman earns $27800 in December, thus decreasing his 18 Aug 2014, 21:32
5
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
PareshGmat
A businessman earns $27800 in December, thus decreasing his average annual (January to December) earnings by $1200. His average annual earnings would be

A: $29000

B: $33500

C: $40200

D: $41000

E: $42300

Source: CMAT Preparation
Show more

Say Earning for 11 Months (January to November) = 11x; Average = x

Earning in December = 27800; Average = x-1200

Setting up the equation

\(\frac{11x + 27800}{12} = x-1200\)

x = 42200

Average = 42200 - 1200 = 41000

Answer = D
General Discussion
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 24 Apr 2026
Posts: 109,811
Own Kudos:
810,956
 [2]
Given Kudos: 105,869
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,811
Kudos: 810,956
 [2]
A businessman earns $27800 in December, thus decreasing his 18 Aug 2014, 03:54
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
PareshGmat
A businessman earns $27800 in December, thus decreasing his average annual (January to December) earnings by $1200. His average annual earnings would be

A: $29000

B: $33500

C: $40200

D: $41000

E: $42300

Source: CMAT Preparation
Show more

(x - 27,800)/11 - x/12 = 1,200
x = 492,000
x/12 = 41,000

Answer: D.
avatar
hsbinfy
avatar
Joined: 02 Mar 2012
Last visit: 13 Nov 2017
Posts: 190
Own Kudos:
325
 [1]
Given Kudos: 4
Schools: Schulich '16
Schools: Schulich '16
Posts: 190
Kudos: 325
 [1]
A businessman earns $27800 in December, thus decreasing his 26 Jun 2016, 05:54
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
another method

he earned 27800 which drops his average annual income by 1200.

so to find the new income -(11*1200 ) +27800=41000

11*1200 means - we are decreasing the average income by x-1200 for each month and calcaulating the new annual salary.

If it was said to find the annual income as per old average x the salary would be 1200*12 +27800=42200

1200*12 - because we are compensating for december
User avatar
stne
User avatar
Joined: 27 May 2012
Last visit: 23 Apr 2026
Posts: 1,809
Own Kudos:
2,090
Given Kudos: 679
Posts: 1,809
Kudos: 2,090
A businessman earns $27800 in December, thus decreasing his 26 Dec 2017, 20:53
Kudos
Add Kudos
Bookmarks
Bookmark this Post
VeritasPrepKarishma
PareshGmat
A businessman earns $27800 in December, thus decreasing his average annual (January to December) earnings by $1200. His average annual earnings would be

A: $29000

B: $33500

C: $40200

D: $41000

E: $42300

Source: CMAT Preparation

Had he earned the previous average in Dec too, the average would have stayed same. To bring down the average earning by $1200, the December earning needs to account for -1200 of all 12 months i.e. it must be 1200*12 = 14400 less than previous average.
So previous average = 27,800 + 14400 = 42,200
So now the average of the year would be 42,200 - 1200 = 41000

Answer (D)
Show more

Hi karishma,
Shouldn't the question have made it more clear that they are looking for the average " after " the decrease .
Or is the future tense " would be " a proper hint?

Felt " would become " would have been more clearer.
I arrived at 42200 then just couldn't find it in the options !
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 38,974
Own Kudos:
1,117
Posts: 38,974
Kudos: 1,117
A businessman earns $27800 in December, thus decreasing his 23 May 2025, 10:54
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Automated notice from GMAT Club BumpBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.
Moderators:
Bunuel
Math Expert
109811 posts
Krunaal
Tuck School Moderator
853 posts