Memo regarding registration fees and compensation for session leaders: The board has approved the registration fee of $375 per registrant...
GMAT Two Part Analysis : (TPA) Questions
Memo regarding registration fees and compensation for session leaders: The board has approved the registration fee of \(\$375\) per registrant per session with a \(\$100\) discount given to those who register in advance. Session leaders will receive \(\$2{,}250\) for leading a session with \(6\) registrants or fewer. An additional \(\$150\) will be given for each additional registrant up to a session total of \(10\) registrants. If the number of registrants for a session exceeds \(15\), however, the session leader will receive an additional \(\$150\) per registrant in excess of \(15\). No other compensation will be awarded to session leaders. These conditions will be effective immediately.
If, subsequent to the release of the memo, a session had 20 registrants, 10 of whom registered in advance, select for Session leader the compensation that would be due to the session's leader for that session and select for Total revenue the total revenue from the session's registration fees. Make only two selections, one in each column.
Let's visualize this problem to make it crystal clear by creating a compensation structure table.
Phase 1: Understanding the Compensation Structure
Let's organize the session leader compensation rules:
| Registrant Range | Compensation |
| 1-6 registrants | $2,250 (base) |
| 7-10 registrants | \(\$2,250 + \$150 \times (\mathrm{number\ above\ 6})\) |
| 11-15 registrants | Same as for 10 registrants |
| 16+ registrants | Amount for 10 + \(\$150 \times (\mathrm{number\ above\ 15})\) |
Key insight: There's NO additional compensation for registrants 11-15. The compensation stays flat at the 10-registrant level until we exceed 15.
Phase 2: Calculating Session Leader Compensation
For 20 registrants:
- Base (1-6): $2,250
- Additional for 7-10: \(4 \times \$150 = \$600\)
- Additional for 11-15: $0 (no additional compensation)
- Additional for 16-20: \(5 \times \$150 = \$750\)
Total compensation: \(\$2,250 + \$600 + \$0 + \$750 = \$3,600\)
Phase 3: Calculating Total Revenue
Registration fees:
- Advance registration: \(\$375 - \$100 = \$275\)
- Regular registration: $375
For our session:
- 10 advance registrants: \(10 \times \$275 = \$2,750\)
- 10 regular registrants: \(10 \times \$375 = \$3,750\)
Total revenue: \(\$2,750 + \$3,750 = \$6,500\)
Phase 4: Final Answer
- Session leader: $3,600
- Total revenue: $6,500