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

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

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!

2. 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.

3. Thanks alot for clarifying! It's reassuring to know I was right