SunnySpa is starting up a medical spa, offering dermatological and cosmetic services for its clients. SunnySpa is trying to figure...

GMAT Multi Source Reasoning : (MSR) Questions

Source: Official Guide

Multi Source Reasoning

Case Study

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Techniques

Budget

Patient

SunnySpa is starting up a medical spa, offering dermatological and cosmetic services for its clients. SunnySpa is trying to figure out whether it can turn a profit depending on what combination of clients it get in its first month.

SunnySpa's offerings include:

Isolaz: once per month for 4-6 sessions, this red laser zaps the oil-producing sebaceous glands using a suction-clamp process which more effectively treats the targeted area.
Fraxel: once per month for 2-6 sessions, a more intense procedure that uses a laser to treat acne scars by stimulating collagen production deep below the skin.
Microdermabrasion: once per month treatment that physically exfoliates the skin using a very small mechanical brush, cutting away dead skin cells on the surface to allow new skin cells to emerge
Acne-creams: daily use, the most common creams include 2-5% benzoyl peroxide that attack facial bacteria and retinol lotions that help rejuvenate a new layer of skin

Ques. 1/3

For each of the following combination of patients, select Yes if, based on the information provided, the business revenue generated can be shown to be less than the cost to rent the medical spa for the first month. Otherwise, select No.

Yes

2 patients want treatment for deep pitted scars and 17 patients want to try laser to reduce the oil coming from their sebaceous glands.

Yes

7 patients want red laser treatment and 50 patients want microdermabrasions.

Yes

High school senior is hoping to have a glowing face with a fresh new layer of skin in time for prom next week.

Solution

OWNING THE DATASET

Understanding Source A: Text Source - Service Description

Information from Dataset	Analysis
""SunnySpa is starting up a medical spa, offering dermatological and cosmetic services for its clients. SunnySpa is trying to figure out whether it can turn a profit depending on what combination of clients it get in its first month.""	SunnySpa is a brand new medical spa business They offer skin and beauty treatments Inference: Profitability depends on getting the right mix of clients in the first month Inference: The company is still figuring out optimal service combinations
""Isolaz: once per month for 4-6 sessions, this red laser zaps the oil-producing sebaceous glands using a suction-clamp process which more effectively treats the targeted area.""	Isolaz is a laser treatment that controls oil production Patients need 4-6 total sessions, one per month Inference: Uses combined suction and laser technology for better results Inference: Specifically targets oil glands (sebaceous glands)
""Fraxel: once per month for 2-6 sessions, a more intense procedure that uses a laser to treat acne scars by stimulating collagen production deep below the skin.""	Fraxel treats acne scars, not active acne Requires 2-6 sessions total Inference: Described as ""more intense"" than other treatments Inference: Works deep below skin surface by stimulating collagen
""Microdermabrasion: once per month treatment that physically exfoliates the skin using a very small mechanical brush, cutting away dead skin cells on the surface to allow new skin cells to emerge""	Microdermabrasion removes dead skin cells mechanically Monthly treatment with no specified end point Inference: Surface-level treatment using physical exfoliation Inference: Uses mechanical brush rather than laser technology Inference: No specified number of sessions unlike other treatments (appears to be ongoing/as-needed)
""Acne-creams: daily use, the most common creams include 2-5% benzoyl peroxide that attack facial bacteria and retinol lotions that help rejuvenate a new layer of skin""	Creams are for daily home use between office visits Two types: benzoyl peroxide (kills bacteria) and retinol (renews skin) Inference: These appear to be supplementary to main treatments Inference: Only treatment patients can do at home

Summary: SunnySpa is a new medical spa offering four treatment types ranging from daily topical creams to intensive laser procedures, each targeting different skin problems with varying treatment durations

Understanding Source B: Text Source - Financial Information

Information from Dataset	Analysis
""The medical spa's first month rent is a total of $10K""	First month's rent costs $10,000 Inference: Rent is a major fixed expense for this startup
""the equivalent cost of 16 Isolaz treatments plus 2 Fraxel treatment packages, or the cost of 100 Microdermabrasion treatments""	This shows the relative pricing of treatments 16 Isolaz + 2 Fraxel packages = $10,000 OR 100 Microdermabrasion treatments = $10,000 Inference: Laser treatments (Isolaz/Fraxel) are premium-priced services Inference: Microdermabrasion is significantly cheaper per treatment Linkage to Source A: The more intense laser treatments from Source A command higher prices
""For each treatment, the spa charges a fixed price""	Simple pricing structure with no discounts or variations Inference: Each service type has a standard rate
""To promote its business for the first month, the spa is offering 1 free month's supply of Benzoyl Peroxide and Retinol Lotions to its patients""	Free creams as promotional incentive for new patients Inference: Creams are used as marketing tools, not primary revenue Linkage to Source A: The daily-use creams mentioned in Source A are being given away free, confirming they're supplementary treatments

Summary: SunnySpa's $10,000 first-month rent can be covered by various treatment combinations, with laser treatments priced much higher than mechanical treatments, and the spa using free creams as promotional tools to attract initial patients

Understanding Source C: Text Source - Patient Profile

Information from Dataset	Analysis
""During her adolescence, Pam began developing chronic acne""	Pam's acne started during teenage years Her condition is chronic (long-lasting) Inference: This is a common age for acne onset
""At first, she would wash her face everyday - some of her classmates suggested she had acne because her face was not clean. She did notice her face got very oily once adolescence began.""	Initially tried basic face washing Classmates wrongly blamed poor hygiene Inference: Increased oil production coincided with acne onset Linkage to Source A: Pam's oily skin directly relates to the Isolaz treatment that targets oil-producing glands
""So she started washing her face 3 times a day with a cleanser. Yet, her acne persisted.""	Increased washing to 3x daily didn't help Inference: Over-washing proved ineffective Inference: Shows limitation of hygiene-only approaches
""Pam was desperate for help, reaching out to her dermatologist who recommended various creams. Some of them helped but she was still getting a lot of acne""	Sought professional medical help when desperate Creams provided only partial relief Inference: Topical treatments alone weren't fully effective Linkage to Source A: Confirms creams are supplementary, not primary solutions Linkage to Source B: Explains why spa gives creams away free - they don't solve chronic acne alone
""worse, some of the older acne was creating hyperpigmented dark spots on her face and leaving acne marks and scars""	Acne caused three types of lasting damage: dark spots, marks, and scars Inference: Condition worsened beyond just active acne Linkage to Source A: Pam needs Fraxel treatment for her acne scars
""Chronic acne was the root cause of her problems and she needed some treatment options""	Recognition that basic approaches failed Inference: Patient needs advanced treatment solutions Linkage to Source A: Pam is exactly the type of patient who needs SunnySpa's laser treatments Linkage to Source B: Chronic acne patients like Pam would need multiple expensive laser sessions, making them high-value customers

Summary: Pam's case perfectly illustrates why SunnySpa's service menu and pricing make sense - chronic acne patients progress from basic cleansing to creams to needing expensive laser treatments for both active acne (oil control) and lasting damage (scars)

Key Insights

SunnySpa's business model targets chronic acne patients like Pam who have exhausted basic treatments
The spa offers a progression of treatments matching patient needs: from free supplementary creams to expensive laser treatments
With laser treatments costing roughly 6 times more than mechanical treatments, the spa needs to attract patients requiring advanced interventions to cover its $10,000 monthly rent
The patient profile justifies both the multi-treatment approach and premium pricing structure
Chronic acne sufferers need comprehensive solutions for both current breakouts and past scarring damage

Source Analysis

Source A - Techniques:

Isolaz: Red laser treatment targeting oil-producing sebaceous glands (monthly sessions)
Fraxel: Laser treatment for acne scars through collagen stimulation (monthly sessions)
Microdermabrasion: Physical exfoliation for new skin layer (monthly treatment)
Acne-creams: Daily use products (promotional giveaway)

Source B - Budget:

First month rent: $10,000
Pricing relationships:
- 16 Isolaz treatments + 2 Fraxel packages = $10,000
- 100 Microdermabrasion treatments = $10,000
- Therefore: 1 Microdermabrasion = $100

Source C - Patient:

Provides context for treatment purposes:
- Oily skin → Isolaz (targets sebaceous glands)
- Acne scars → Fraxel
- Fresh skin layer → Microdermabrasion

Information Integration

From the pricing relationships, we can establish:
- Microdermabrasion = $100 per treatment
- Let Isolaz = i per treatment and Fraxel = f per package
- Equation: (16mathrm{i} + 2mathrm{f} = 10,000)
For f to be positive: (mathrm{f} = frac{10,000 - 16mathrm{i}}{2} = 5,000 - 8mathrm{i} gt 0)
This means (mathrm{i} lt 625)

Statement Evaluation

Statement 1:

""2 patients want treatment for deep pitted scars and 17 patients want to try laser to reduce the oil coming from their sebaceous glands.""
Deep pitted scars → 2 Fraxel packages
Oil reduction laser → 17 Isolaz treatments
Revenue = 17 Isolaz + 2 Fraxel
Compare to benchmark: 16 Isolaz + 2 Fraxel = $10,000
Since 17 > 16, revenue > $10,000
Answer: No (revenue is NOT less than rent)

Statement 2:

""7 patients want red laser treatment and 50 patients want microdermabrasions.""
Red laser → 7 Isolaz treatments
50 Microdermabrasion = 50 × $100 = $5,000
Revenue = 7i + $5,000
Since i < 625, then 7i < 4,375
Maximum revenue = 4,375 + 5,000 = $9,375 < $10,000
Answer: Yes (revenue IS less than rent)

Statement 3:

""High school senior is hoping to have a glowing face with a fresh new layer of skin in time for prom next week.""
Fresh new layer of skin → 1 Microdermabrasion
Revenue = 1 × $100 = $100 < $10,000
Answer: Yes (revenue IS less than rent)

Final Answer

Statement 1: No
Statement 2: Yes
Statement 3: Yes

No, Yes, Yes

Answer Choices Explained

Yes

2 patients want treatment for deep pitted scars and 17 patients want to try laser to reduce the oil coming from their sebaceous glands.

Yes

7 patients want red laser treatment and 50 patients want microdermabrasions.

Yes

High school senior is hoping to have a glowing face with a fresh new layer of skin in time for prom next week.

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