Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
29 Jul 2015, 15:46
Kudos
Bookmarks
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:
34% (02:19) correct
66%
(01:49)
wrong
based on 251
sessions
History
Date
Time
Result
Not Attempted Yet
Each customer of a networking company subscribes to one of two plans: Plan A or Plan B. Plan A costs $75 per month and Plan B costs $175 per month per customer. If the company’s average revenue per customer per month is $100, then what percent of the company's revenue comes from customers with Plan A?
A. 25%
B. 30%
C. 37.5%
D. 56.25%
E. 75%
A. 25%
B. 30%
C. 37.5%
D. 56.25%
E. 75%
17 Aug 2015, 09:47
Kudos
Bookmarks
Bunuel
800score Official Solution:
This is a tricky weighted average problem. If there are only two price levels, $75 and $175, and the average customer pays $100, then the number of customers who pay $75 must be 3 times the number of customers who pay $175, since $100 is 3 times as close to $75 as it is to $175.
We can show this algebraically:
If there are A customers with plan A, and B customers with plan B, then the total revenue is $75A + $175B.
Since the average customer pays $100, we know that
$100 = ($75A + $175B) / (A + B)
$100(A + B) = ($75A + $175B)
$100A + $100B = $75A + $175B
$25A = $75B
A = 3B.
Since there are 3 times as many $75 clients as $175 clients, for every $175 received from Plan B customers, 3($75) = $225 is received from Plan A customers, and the percent of revenue from customers with Plan A is:
$225/($225 + $175) = $225/$400 = 56.25%.
The correct answer is choice (D).
General Discussion
29 Jul 2015, 16:28
Kudos
Bookmarks
Bunuel
The question asks for the amount of revenue from plan A, but before the amount of revenue can be calculated, the number of units from Plan A must be calculated. If the average revenue was $100\(x\), with \(x\) being the quantity of total plans, the weight between 75 and 175 is \(3:1\). Again, the question is asking what the revenue is. Thus, assume that 4 units were sold, three of the four units equals $225. \(\frac{225}{400}\) or \(56.25\)%.
Answer D.
To prove that's the correct answer choice, I went through the answer choices.
A. 25% Trick answer, paired with E. Out.
B. 30% Figured percentage must be a fourth or eight of something, so since the number of units a multiple of 4, 30% is out.
C. 37.5% Paired with D. Out
D. 56.25% Correct
E. 75% Trick answer if problem were half solved. Out
