An executive has estimated that an advertisement will generate $100

Question

﻿An executive has estimated that an advertisement will generate $100 in revenue for every 1,000 times the advertisement is viewed. A salesperson has determined that the number of times, y, an advertisement is viewed can be estimated by the equation y = 100x - 100,000, where x is the total number of dollars spent on the advertisement. According to these estimates, which of the following is nearest to the amount of money that needs to be spent on the advertisement in order for it to generate $100,000 in revenue?

A. $900 
B. $1,100
C. $2,000
D. $9,000
E. $11,000

MartyMurray · Accepted Answer

We need to answer the following question:

Which of the following is nearest to the amount of money that needs to be spent on the advertisement in order for it to generate $100,000 in revenue?

We can break the task down into steps.

We see that the passage says the following:

An executive has estimated that an advertisement will generate $100 in revenue for every 1,000 times the advertisement is viewed.

So, we can use this information to determine how many views are needed for the advertisement to generate $100,000 in revenue.

$100,000/$100 = 1000

So, the advertisement must be viewed 1000 x 1000 = 1,000,000 times for it to generate $100,000 in revenue.

Now, we need to determine how much money must be spent on the advertisement for it to be viewed 1,000,000 times.

We see that the passage says the following:

A salesperson has determined that the number of times, y, an advertisement is viewed can be estimated by the equation y = 100x - 100,000, where x is the total number of dollars spent on the advertisement.

So, to find the correct answer, we just need to use 1,000,000 for y in that equation to determine what amount x is.

y = 100x - 100,000 -> 1,000,000 = 100x - 100,000

1,100,000 = 100x

11,000 = x

The correct answer is (E).

gmatophobia · Answer

$100 ----- Number of Views =  1000

Multiplying both sides by  1000

$ 100*1000  ----- Number of Views =  1000 * 1000 = 10^6

y = 100x - 100,000

10^6 = 100x - 100,000

Dividing both sides by  100

10^4 = x - 10^3

x = 10^4 + 10^3

x = 10^3(10 + 1)

x = 11*10^3

Option E

JeffTargetTestPrep · Answer

x = cost of the advertisement in dollars

100x – 100,000 = the number of times an advertisement is viewed

(100x – 100,000)/1,000 = 0.1x – 100 = the number of times the advertisement generates $100 revenue

100(0.1x – 100) = 10x – 10,000 = the revenue generated by the advertisement

Since we need $100,000 revenue, we have:

10x – 10,000 = 100,000

10x = 110,000

x = $11,000

Answer: E

Paras96 · Answer

An executive has estimated that an advertisement will generate $100 in revenue for every 1,000 times the advertisement is viewed. A salesperson has determined that the number of times, y, an advertisement is viewed can be estimated by the equation y = 100x - 100,000, where x is the total number of dollars spent on the advertisement. According to these estimates, which of the following is nearest to the amount of money that needs to be spent on the advertisement in order for it to generate $100,000 in revenue?

To generate $100,000 in revenue, No. of times the advertisement to be viewed y = 1000 * 100,000/100 = 1,000,000

Also,
=> y = 100x - 100,000
=> 1,000,000 = 100x - 100,000
=> 100x = 1,100,000
=> x = $11,000

Hence E

To generate $100,000 in revenue, No. of times the advertisement to be viewed y = 1000 * 100,000/100 = 1,000,000

Also, 
=> y = 100x - 100,000
=> 1,000,000 = 100x - 100,000
=> 100x = 1,100,000
=> x = $11,000

Hence E

GMATGuruNY · Answer

We can PLUG IN THE ANSWERS, which represent the value of x -- the amount of money that must be spent on advertising.
The correct answer must yield $100000 in revenue, given that $100 is earned for every 1000 viewings.

D: x=9000
Number of viewings -->  y = 100*9000 - 100000 = 800000 
Revenue  = \frac{800000-viewings}{1} * \frac{$100}{1000-viewings} = $80000 
Since the revenue is too small, a greater answer choice is needed.

E

GMATCoachBen · Answer

As a habit, we must understand the variables and exactly what it's asking for:

It asks for the x value that generates $100,000 in revenue, but in our y = 100x - 100,000 equation, y represents the "number of times an advertisement is viewed".

So, we must convert from $ in revenue to number of views.

The first sentence says that $100 = 1000 views, so we see that we multiply the $ by 10 to get the views:

Therefore, $100,000 * 10 =  1,000,000 views.

Alternatively, we could set up a proportion equation:

\frac{1000   views }{ $100 } = \frac{y }{ $100,000 } , so y = 1,000,000

Next, we plug y = 1,000,0000 into our equation:

1,000,000 = 100x - 100,000
1,100,000 = 100x
  11,000 = x

DanTheGMATMan · Answer

Pretty standard word problem- no sweat:

https://www.youtube.com/watch?v=EEswR90Ven8

bumpbot · Answer

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An executive has estimated that an advertisement will generate $100

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An executive has estimated that an advertisement will generate $100

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