# Table of figures, finding new revenue, very short but difficult brain teaser

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• Feb 10th 2010, 02:45 AM
bboydocument
Table of figures, finding new revenue, very short but difficult brain teaser
http://img153.imageshack.us/img153/9184/capturep.jpg

Student discount price: \$4
Normal price: \$7

Multiple Choice Question: If the club offered no discount for students and consequently the number of students attending dropped by 10%, what would be the new revenue created for Jan?

Choice of answers:
A) \$80,900
B) \$92,000
C) \$122,600
D) \$104,000

Correct answer is D. I have been trying for hours to solve this problem!!
I have no idea how they got D.

This is what i've tried:

So, students have dropped by 10%. I assume they mean 10% per month. Therefore, for Jan we now have 0.9 * 14000 = 12600 student sales.

But we have 8000 "normal sales", who already pay full price (\$7).
Therefore, the new revenue for Jan should be:
(\$7 * 8000) + (\$7 * 12600) = \$144,200

Now, I assume the answer they want doesn't take into account the "old" revenue, ie. the revenue that would already occur before taking away the discount anyway. This would be: (\$7 * 8000) + (\$4 * 14000) = \$112,000

Therefore, the new revenue generated by the removal of the discount would be: \$144200 - \$112000 = \$322,000.

But this isn't in the choice of answers! So how did they get choice D? Does anyone know? Thanks!
• Feb 10th 2010, 10:03 AM
ebaines
You approach is correct, and you have the right answer - almost! There's a typo in the last bit - you should have \$144200 - \$112000 = \$32,200.

Don't know how they got answer D. All I can think is that the problem is not worded correctly. You either need a lot more studenst than the 14,000 shown for January, or the difference between the regular price and the student discont price has to be a lot bigger than \$3.
• Feb 11th 2010, 06:27 PM
bboydocument
Thanks alot for clarifying! It's reassuring to know I was right