With respect to the division whose percent of total income

Question

screenshot.1.png With respect to the division whose percent of total income exceeded its percent of total expenses by the greatest amount among the four divisions, by approximately what amount did the division's income exceed its own expenses ? A. $ 69,000 B. $ 90,000 C. $ 150,000 D. $ 185,000 E. $ 240,000

Bunuel · Accepted Answer

Division A's percent of total income exceeded its percent of total expenses by 38%-35%=3%;
Division B's percent of total income did not exceeded its percent of total expenses, 12%-26%=-14%;
Division C's percent of total income exceeded its percent of total expenses by 20%-14%= 6% ;
Division D's percent of total income exceeded its percent of total expenses by 30%-25%=5%;

Since division C's difference is the greatest then we should calculate the amount of this difference in $: 0.20*1,560,000-0.14*495,000=~240,000.

Answer: E.

carcass · Answer

Thanks .....

I resolve it after 2 minutes........for this particular problem is good (on average) or is too long ??

what is your thought ???

Bunuel · Answer

Since this problem has quite confusing wording and after you get through it you should calculate approximate value of 0.20*1,560,000-0.14*495,000=~0.20*1,600,000-0.15*500,000=320,000-75,000=245,000 then I'd say that 2 minutes is not that long, after all.

Bunuel · Answer

Bumping for review and further discussion*. Get a kudos point for an alternative solution!

*New project from GMAT Club!!! Check HERE

All DS Graphs and Illustrations Problems to practice: search.php?search_id=tag&tag_id=240
All PS Graphs and Illustrations Problems to practice: search.php?search_id=tag&tag_id=239

cumulonimbus · Answer

It took me 3:05 mins.

mvictor · Answer

the wording of the question is way too confusing...really..i solved incorrectly just because of that...

Sajjad1994 · Answer

Official Explanation

Step 1:  This is a complex question. First, you need to compare profitability among the four divisions. You can rule out Division B, since its percent of total expenses exceeded its percent of total income. That leaves Divisions A, C, and D.

Step 2:  For Divisions A, C, and D, compare percent of income and percent of expenses:

Division A:  38% of total income and 35% of total expenses (3% difference)
 Division C:  20% of total income and 14% of total expenses (6% difference)
 Division D:  30% of total income and 25% of total expenses (5% difference)

For Division C, (20%) ($1,560,000) 2 (14%) ($495,000) 5 $242,700.

Step 3:  Answer choice (E), $240,000, is the only one close to our approximation, so the   correct answer is (E).

bumpbot · Answer

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

With respect to the division whose percent of total income

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

With respect to the division whose percent of total income

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards