GRE Prep Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
An office manager is charged with staffing. His first hire costs $15/
[#permalink]
06 Mar 2024, 01:33
06 Mar 2024, 01:33
1
Expert Reply
00:00
Question Stats:
15% (01:17) correct
84% (01:46) wrong based on 13 sessions
Hide Show timer Statistics
An office manager is charged with staffing. His first hire costs $15/hr, and generates revenue of $20/hr.This employee can work at 100% efficiency. Each additional employee hired can only work at 90% of the efficiency of the previous hire. What is the maximum number of employees he can hire before the employee costs more than the revenue he generates?
A. 2
B. 3
C. 4
D. 5
E. cannot be determined
A. 2
B. 3
C. 4
D. 5
E. cannot be determined
Part of the project: The Butler-GRE Daily New Quant and Verbal Questions to Practice (2023) - Gain 20 Kudos & Get FREE Access to GRE Prep Club TESTS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Free Materials for the GRE General Exam - Where to get it!!
GRE Geometry Formulas
GRE - Math Book
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Free Materials for the GRE General Exam - Where to get it!!
GRE Geometry Formulas
GRE - Math Book
Manager
Joined: 11 Nov 2023
Posts: 228
Given Kudos: 78
WE:Business Development (Advertising and PR)
Re: An office manager is charged with staffing. His first hire costs $15/
[#permalink]
07 Mar 2024, 20:59
07 Mar 2024, 20:59
1
Let n = the nth employee hired after the first
The profit generated by the nth employee = (20 * 0.9^n) - 15
The employee costs more than revenue generated when (20 * 0.9^n) - 15 ≤ 0
When n = 1, (20 * 0.9^1) - 15 = 18 - 15 = 3
When n = 2, (20 * 0.9^2) - 15 = 16.2 - 15 = 1.2
When n = 3, (20 * 0.9^3) - 15 = 14.58 - 15 = -0.42
Thus, the max he can hire is 2 additional + 1st employee = 3.
The profit generated by the nth employee = (20 * 0.9^n) - 15
The employee costs more than revenue generated when (20 * 0.9^n) - 15 ≤ 0
When n = 1, (20 * 0.9^1) - 15 = 18 - 15 = 3
When n = 2, (20 * 0.9^2) - 15 = 16.2 - 15 = 1.2
When n = 3, (20 * 0.9^3) - 15 = 14.58 - 15 = -0.42
Thus, the max he can hire is 2 additional + 1st employee = 3.
gmatclubot
Re: An office manager is charged with staffing. His first hire costs $15/ [#permalink]
07 Mar 2024, 20:59
Moderators:
