ACME Products is located in England and ships its products to customer

Question

ACME Products is located in England and ships its products to customers in many European nations. ACME offers both standard and express delivery to destinations within its six delivery zones (see Orders and Zones tab). Express delivery costs twice as much as standard delivery, but guarantees that products will arrive at their destination one weekday sooner than with standard delivery in Zone 1, and two weekdays sooner than with standard delivery in Zones 2 through 6. (Weekdays are Monday through Friday) However, express delivery is available for the same cost as standard delivery on any order with a base cost—the total cost of the products ordered, before shipping and taxes—of 100 pounds sterling (£) or more.

Delivery includes, at no charge, insurance of £10 per kilogram against damage during shipping. Extra insurance can be purchased for orders using standard shipping only, at a cost of £1 for each additional 10 per kilogram of insurance.

guddo · Accepted Answer

The Policies passage says delivery includes insurance of £10 per kilogram against damage during shipping. If Order F weighs exactly 25 kg, its standard shipping cost includes 25 x £10 = £250 of such insurance. Thus, if Order F has £300 of such insurance, the customer bought £300 − £250 = £50 of extra insurance. According to the Policies passage, the cost is £1 for each £10 of extra insurance. So, the total cost for Order F’s £50 of extra insurance was £5.00 (option D). The correct answer is D. GMAT-Club-Forum-wb4p5j4r.png

KarishmaB · Answer

Yes, I agree. I don't know how to evaluate "at a cost of £1 for each additional 10 per kilogram of insurance" if this is exactly how it is given in the official content too. More likely it is some copy-paste error. I would mark the answer to question 1 as 5 pounds because nothing else makes sense, but just to get it over with.

Oppenheimer1945 · Answer

1) As per Policies Tab: extra insurance cost=300-250=50 £
=> 10/kg means=50/10=5 £

2) As per Shipping table: order C is zone 3, includes wt of 24 kg, extra wt=10 kg 
=> total cost=15 £+10*0.5 £=20 £ YES
Order I (zone 4), max wt=26 kg, extra wt=29- 26=3kg, cost=£3*0.5=1.5 £
Total cost=17+1.5 £ NO
Order G (zone 5), max wt=28kg, hence standard cost=20 £ YES

3)Order E is in zone 4, we need to mark YES for Zones 1-3. 
Order D,H,J all lie in zones 4 -6 , Hence NO NO NO

Blackcrow1972 · Answer

"at a cost of £1 for each additional 10 per kilogram of insurance."
should not it be:
at a cost of £1 for each additional 10 pounds of insurance

Though I understand this is a 2024-2025 official guide question, but I think that there is a typo error in the book?

guddo · Answer

RO1: The Orders and Zones map shows that Order C’s destination is in Zone 3. The Shipping Table says that standard shipping without extra insurance for an order going to Zone 3 costs £15 for a weight of up to 24 kg, plus £0.50 for each kilogram in excess of 24. So, if Order C weighs exactly 34 kg, which is 10 kg in excess of 24, standard shipping without extra insurance for Order C costs exactly £15 + (10 x £0.50) = £20. The correct answer is Yes. RO2: The Orders and Zones map shows that Order I’s destination is in Zone 4. The Shipping Table says that standard shipping without extra insurance for an order going to Zone 4 costs £17 for a weight of up to 26 kg, plus £0.50 for each kilogram in excess of 26. So, if Order I weighs 29 kg, which is 3 kg in excess of 26, standard shipping without extra insurance for Order I costs £17 + (3 x £0.50) = £18.50, which is not exactly £20. The correct answer is No. RO3: The Orders and Zones map shows that Order G’s destination is in Zone 5. The Shipping Table says that standard shipping without extra insurance for an order going to Zone 5 costs exactly £20 for a weight of up to 28 kg. So, if Order G weighs 24 kg, which is less than 28 kg, standard shipping without extra insurance for Order G costs exactly £20. The correct answer is Yes. GMAT-Club-Forum-nvyodgim.png

guddo · Answer

RO1: The Orders and Zones map shows that Order E's destination is in Zone 4, while Order D’s is in Zone 6. The Shipping Table says that with standard shipping the guaranteed maximum shipping time is 5 weekdays for orders going to Zone 4, but 7 weekdays for orders going to Zone 6. Assuming that each order shown on the map is shipped using standard shipping, the guaranteed maximum shipping time is 5 weekdays for Order E but 7 weekdays for Order D. Thus, Order D's guaranteed maximum shipping time is not less than Order E’s. The correct answer is No. RO2: As explained above, with standard shipping Order E’s guaranteed maximum shipping time is 5 days. The Orders and Zones map shows that Order H is going to Zone 5. The Shipping Table says that with standard shipping the guaranteed maximum shipping time is 6 weekdays for orders going to Zone 5. Since we’re still assuming that each order shown on the map is shipped using standard shipping, Order H’s guaranteed maximum shipping time is 6 weekdays, which is not less than Order E’s. The correct answer is No. RO3: The Orders and Zones map shows that Order J, like Order E, is going to Zone 4. Since any two orders going to the same zone with standard shipping have the same guaranteed maximum shipping time, Order J’s guaranteed maximum shipping time is the same as Order E’s, not less than Order E’s. The correct answer is No. GMAT-Club-Forum-qu7ltmdb.png

Pikachuu · Answer

Same here — I just couldn’t digest the line:  “Extra insurance can be purchased for orders using standard shipping only, at a cost of £1 for each additional £10 per kilogram of insurance.”

That wording is honestly so twisted that it throws you off for a bit.

Still, £5 is the only answer that really makes sense.

On a side note, if GMAC is deliberately messing with us on the tougher questions by dropping data in this kind of convoluted way, then yeah... we’re in for a rough ride.

	£0.00
	£0.50
	£1.00
	£5.00
	£10.00

Yes	No
		Order C weighing exactly 34 kg
		Order I weighing exactly 29 kg
		Order G weighing exactly 24 kg

ACME Products is located in England and ships its products to customer

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