A company is considering replacing its periodic offsite face-to-face meetings with ones that can be conducted online in a virtual...

GMAT Graphics Interpretation : (GI) Questions

Source: Mock

Graphics Interpretation

GI - Other

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Chart showing cost comparison between face-to-face meetings and virtual meeting setup

A company is considering replacing its periodic offsite face-to-face meetings with ones that can be conducted online in a virtual environment. The company calculated its costs for each face-to-face meeting as well as the initial one-time costs necessary to set up online meeting capabilities. Once those capabilities are established, the company incurs negligible additional costs for each subsequent meeting. The graphic shows the one-time cost to the company for the virtual meetings as well as the total costs for the face-to-face meetings. For example, if the company conducted 5 face-to-face meetings, then the total costs to the company for the meetings would be approximately US$20,000.

Select from each drop-down menu the option that creates the most accurate statement based on the information provided.

Holding face-to-face meetings would cost the company less than would holding the same number of virtual meetings until the total number of meetings held reached approximately, when the total costs of face-to-face meetings would meet or exceed the approximately of expenses needed to set up the virtual meeting capabilities.

Solution

Key Insights

Virtual meetings cost $55,000 one-time; face-to-face cost $4,000 each; breakeven at 14 meetings.

Answer Choices Explained

Holding face-to-face meetings would cost the company less than would holding the same number of virtual meetings until the total number of meetings held reached approximately

, when the total costs of face-to-face meetings would meet or exceed the approximately

US$15,000

US$30,000

US$55,000

US$80,000

of expenses needed to set up the virtual meeting capabilities.

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