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Posted on
17
Apr 2020

The Online GMAT Part 2: Updates & Testing Experience

Mike from Apex GMAT is here to give you part two on our update about the online GMAT exam that’s being rolled out in response to the Covid-19 crisis.

The Exam Overview

This exam is designed to be a standalone, separate exam that’s done in the test centers. While there are going to be many similarities there are also a few key differences that you should know about. If you haven’t done so already I’d encourage you to check out part one of our video. It has a lot of key details about the exam.

Test Scheduling

When it comes to scheduling the exam unfortunately it seems that you can’t take an appointment that you have for a live test center and convert it to an online appointment. I’m not entirely sure why this is but due to pricing differentials, scheduling differentials, your online exam has to be a separate enrollment. Your live exam can still be rescheduled for a time when a test center opens.

Take it 24/7

One of the benefits of the online exam is that you can schedule to take it 24/7. It’s going to operate around the globe so there’s no middle-of-the-night blackout time. You can do it at that time of the day that you feel most pumped for the GMAT. This is really great because many times were forced into a time slot either because availability or just because you might be a night owl and the testing center closes at 5:00pm. So this is a real advantage for people who feel on at all hours.

Setup & Proctoring

There are several key things that are going to take place in the setup and proctoring of the exam for security purposes that you should be aware of. First off, there’s going to be a live proctor watching you during the exam. They’ll be able to see you and listen to you during the entirety of the exam. If you have a problem, if you have questions you can both buzz them in a chat or raise your hand and they’ll come on camera live. If you’re having a connection issue or there’s some technical glitch the GMAC is pledged to be fair and not take off time from your exam. However, if you’re raising your hand for the proctor for something that wasn’t an issue, your time, your clock doesn’t stop. So in that sense it’s just like the live GMAT.

Technical Issues

If there’s a major technical issue retakes are available but that’s really going to be something that’s subject to the judgment of the GMAC. We would expect that their system works very well and that the need for a true retake is going to be very rare. Coinciding with this you’re only going to be able to take the online GMAT one time. You won’t get your score immediately but rather sometime within about seven days. It’s a score that can’t be canceled because the online GMAT is designed to only be taken once.

So it’s really more of an emergency measure where people who need to take the GMAT to get an application out should be able to do so. But those same people shouldn’t be able to cancel their score because this is their their ultimate attempt. That being said, there’s nothing stopping you from taking additional GMATs once the live appointments become available. Do be careful here, because it can lock you into a score that you might not want.

Exam Check-In

The check-in procedure for the exam is somewhat involved. It’s done live with a proctor and it takes 10 to 15 minutes. What they’re going to have you do is take a selfie, upload a photo or a snapshot of your photo ID. Then they’re actually going to have you walk around the room. Show them the corners, show them that your desk is clear without any papers on it. Show them the door to the room to ensure that there’s no one in the room. For the duration of the exam, including the breaks, you won’t be permitted to leave the room.

Exam Section Order

The online GMAT has a predetermined order of sections. So unlike the testing center version of the GMAT you won’t be able to pick and choose which sections you do first, second and so on. So after the check-in you’ll be immediately directed to the quantitative section, then the verbal, a five-minute break and then the integrated reasoning and then you’re done.

Scratch Paper

With respect to the scratch paper that we normally get in an appointment GMAT which is that dry erase sort of stuff – on the online GMAT you won’t be permitted to write as we understand it. There will be an online calculator for the integrated reasoning section just like on the normal GMAT and then you’ll have a white board that should be some sort of adjustable screen window that you can scribble on and you should be able to move it around the screen for your convenience during the exam.

And this is something that we’re mildly concerned about and you know we have this saying here, “if you’re doing math you’re, doing something wrong.” That said having scratch paper and the comfort of physical pen and paper is something that a lot of people rely upon so keep this in mind as you get ready to take the online GMAT.

Extra Time On The Exam

Finally, for those of you who have an accommodation of extra time from the exam, the online GMAT isn’t available now but they expect that functionality to roll out in mid-may both for time and a half and double time and that also includes an extended break instead of five minutes going to ten minutes in between the verbal and the integrated reasoning.

Check Pearson Vue’s video about the testing experience.

Thanks so much for watching, email us with any questions. We’re here to help during this time and stay safe and healthy out there.

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Posted on
16
Apr 2020

Online GMAT Exam

Hi guys. Mike here from Apex GMAT, bringing you the latest on the online GMAT exam. The GMAC just announced that they’re rolling out the online GMAT.

When can you take the Exam?

The earliest appointments that are available are April 20th and appointments extend all the way to June 15th. You should be able to log on right now to secure your appointment. All the links you need are below this video for understanding all the rules and everything else that are going to be governing the online exam. But I’m here to bring you what we know. I’ll be here again tomorrow after we have our call with the GMAC to give you additional details and context.

Key Information About the Exam

Most computers and most high speed interconnect internet connections should be fine for taking the GMAT online. You will need either a PC or Mac and Windows 8.1 or 10 or Mac OS 10 point 13 or above. Windows 7 will not work and unfortunately for you hackers and private people of the world Linux and UNIX OS’s will not work.

There are some additional specifications that you need to be aware of. Number one is that you can’t connect over a VPN and a lot of firewalls might disrupt the connection. There will be a protocol for the GMAC to test your connection before you take the exam but if you’re connecting through a work computer you may run into some issues. Similarly, due to the security protocol you won’t be able to have a second monitor hooked up and you’re going to need a webcam that’s operating at least 10 frames per second as well as an internet connection that is at least 1 Mbps.

In addition to this there will probably be some additional protocols where you need to check in because they’re using online proctor’s to actively monitor your taking of the exam and this means unfortunately that a few countries because of data and privacy laws will not be able to take advantage of the online GMAT which include China, North Korea, Sudan, Iran, Cuba and Slovenia. So if you’re in one of those countries unfortunately you can’t take the online GMAT exam.

The cost for the online GMAT is two hundred dollars ($200) and you should also be able to use an existing registration to make a new appointment for the online GMAT.

Format of the Exam

Format wise it’s going to be almost exactly the same with the exception of the writing section. There won’t be one so for those of you who have stamina issues on the GMAT the good news is that the exam will be a half hour shorter. For those of you who have experienced GMAT anxiety which I talked about with several other videos one of the nicest things about the online exam is that you’ll be able to take it in the comfort of your own home or your own space. Doing so is going to offer some significant benefits but also a few liabilities because you’re much more prone to be distracted when you’re in your own space.

So one of the things I would certainly recommend is preparing to sit the exam like you were going to sit at a testing center that means sitting up straight. Ensuring that you have as much quiet as possible, earplugs should be available to you and you should have clothes on (you know, no pajama pants). Dress as if you were taking the exam, wear shoes because these things will put you in a good headspace to be attentive in taking the exam seriously.

Taking the Exam with a Disability

For those of you with disabilities the accommodations for disabilities are not yet installed in the online GMAT exam so they expect those to be available by mid May.

Scoring

In terms of getting your score right now they expect that the score should be available within a week of taking the exam. I don’t know if that means that they’re going to be recalibrating the exam for any bumps or dips they see in the different format or because the exam is shorter or if they’re going to offer something much more immediately like on the real GMAT but give it an extra level of supervision before they make it official. That’s something that we should have more information for you on tomorrow.

Additional Information and Help

All the pertinent information you guys need about the online exam are in the links below including the ability to register for the GMAT’s online webinar and Friday the 17th where you can have additional questions answered. Thanks so much for watching, stay safe and healthy and I wish you all the best in your online GMAT. Of course if you need us for anything you can email questions to us at this address [email protected]

 

Update: Get more information about the online GMAT in this follow up video: Online GMAT Update.

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Posted on
16
Apr 2020

Combinatorics GMAT Problem: Movie Night

Today we’ve got a fairly straightforward GMAT combinatorics problem. If you’ve been self-prepping in a rigorous, let me review the rules sort of way, you’ll pick up that there’s orders, combinations here and you might be inclined to really dive in. What’s my combinations formula? What’s my permutation formula? How do I know which is which? Then plug in numbers.

While that will get you there understand that most GMAT combinatorics problems are more about being familiar with combinatorics than any really heavy duty math. That is because the number of people who are taking the GMAT are generally more familiar with Algebra or Geometry.

Combinatorics & The GMAT

Combinatorics, by virtue of being less known, is considered more valuable. It is scored more highly than problems of similar complexity in Algebra or Geometry. So you’re really being rewarded just for knowing basic combinatorics and in fact most permutation/combination problems fall into this basic category. The good news here is that you can use your reasoning to solve this problem without being burdened by the formal combinatorics formulas.

Solving The Problem

Let’s take a look at this problem. John’s having a movie night. We need to ask ourselves a series of pivot questions. How many different movies can John show first?

Well there’s 12 movies, he could show any of the 12. Leaving 11 movies to be shown second, any of 11. 10, 9. So the answer is 12x11x10x9 or 11,880. But even this math is a lot to do. Notice that by walking it through as a story, as a narrative, we don’t need to cancel out the 7 6 5 4 3 2 1. We don’t need to worry about division or anything else. We just know that there’s 4 movies and each time, each step we take, there’s one less movie available. Here we have this product 12 times 11 times 10 times 9, but we don’t really want to be forced to process this and so we can look for features that allow us to skip doing that heavy math.

Transforming The Numbers

We’ve got this really neat triangular shape in the answer choices where each answer has a different number of digits in it. 12, 11, 10, 9, we can look at and say on average each one’s about 10. The 9 and the 12 sort of compensate, but overall we’re going to have something that’s close to 10 times 10 times 10 times 10.

That is our answer should be somewhere around 10,000 or possibly a little more because we have an 11 and a 12 offset only by a 9. So what we’re looking for is something in that just above 10,000 range this prevents us from doing the math and very rapidly lets us look at those four movies, those numbers 12 11 10 9 and zero in on that 11 880 number.

Problem Form

Try it again with a similar number. Notice that you can’t do this with a hundred different movies selecting 17 of them. The math, the numbers would be too cumbersome.

The GMAT is really restricted here and you should restrict yourself to ones that are reasonable to keep processed in your head without doing heavy duty math. Similarly, notice how this one clusters around ten, it doesn’t have to cluster around ten, but when you’re rewriting this problem think about that clustering and think about how your knowledge of common powers or how other identities can help you rapidly get to an answer because the GMAT will present you with numbers that have a neat clean way to jump from your understanding directly to the answer without all that messy math in between.

This is Mike for Apex GMAT with your problem of the day.

If you enjoyed this combinatorics GMAT problem, try more GMAT practice problems:  Remainder Number Theory 

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Posted on
26
Mar 2020

How COVID-19 Is Affecting The GMAT And Its Test Takers

Mike is here with a special update video about how the COVID-19 is impacting the GMAT testing world. I wanted to share some big news with you guys from the GMAC, the makers of the GMAT, about a substitute exam that they will be using and that you should be able to take from home starting in the middle of April.

General Inquiries

So, first off, a lot of people are finding themselves in uncertainty about their application process and about their GMAT preparation. To be sure, we have been getting a lot of calls about people wanting to make the best use of their time while they are furloughed from work, or while they are working from home and have a bit more flexibility and to be sure it’s an opportune time to bite off this task which for most people is really hard to fit into their existing professional and personal lives.

Additionally, we have a lot of inquiries about what’s going to happen with admissions. We can’t speak for any particular schools, however, we expect that the window of the virus crisis is such that it won’t meaningfully impact applications for Fall of 2021, that is that by the time your first round comes around in September or October, you are going to be able to get in, take the GMAT as normal and be able to apply and go to other events.

That of course is the hope and this is an emerging phenomenon, and emerging circumstance on the world stage without much precedence. So of course things are bound to change and we promise to keep you updated through the entirety of this crisis.

The New Exam

The new exam that the GMAC is rolling out will be taken from home and they are planning on rolling it out sometime in the middle of April. It will have three of the four GMAT sections, Integrated Reasoning, Quantitative and Verbal. So you will be able to get your score out of 800 with Quant and Verbal as well as your score for the Integrated Reasoning. The only section that will be missing is the writing section which I say is the least important of the entire GMAT from an admissions standpoint. The exam will be priced at a lower price point; they have not announced what that price point is but certainly at some discount to the normal $250 that’s charged.

Test Considerations

There are also some strategic considerations that come with this exam and some things we don’t yet know. For example, it is unclear as to whether you will get to choose the order of the sections when you take the exam or if it will be predetermined. Additionally, because the GMAC is likely using a different problem bank than they use for the actual GMAT, this makes some subtle time allocation and strategic guessing decisions change compared to the normal GMAT and I will be talking about that in another video.

If You Need Any Help Give Us A Call

I know that this is a stressful time for everyone who has business school and GMAT plans that have been disrupted. So if you need any help or need any advice, please feel free to visit our website: www.apexgmat.com.

You can contact us directly through there by chat, phone or email and from our entire family, we wish you health and safety in this difficult time and we’ll look forward to keeping you updated as soon as we have new information. Thanks so much and stay safe.

Watch other videos about COVID-19 and the GMAT: Here 

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Posted on
25
Mar 2020

GMAT Videos: Will They Help Improve My Score?

You most likely navigated to this video after watching some other GMAT videos. If you’re self-prepping by watching a lot of GMAT videos I’ve got some bad news for you. It’s a very low yield way to prep, especially if you’re doing it to the exclusion of other things.

Passive Learning

Now we have plenty of videos up here: some informational, many problems, testimonials, all kinds of stuff. It’s not that they don’t have a role in your preparation.

However, if you’re spending a lot of your prep time on a regular basis watching videos then what you’re engaging in is passive rather than active learning. Again, that’s a very low yield way to learn. That’s the most generous explanation. A realistic explanation might be that you’re using these videos, going around YouTube, looking at different platforms, as a way to feel like you’re making progress. Especially if you’ve been prepping for a long time without a measurable result or if you’ve hit a plateau.

This idea of doing more, engaging more, watching more videos, doing more problems, seems like a really good idea because that’s worked for you in the past. But in fact what you’re doing is self-medicating the psychological anxiety of either not improving or having to put forth meaningful effort & work to change the way you’re approaching the GMAT.

Change Your Approach to Watching GMAT Videos

The good news is there’s a solution for this and it doesn’t mean that you need to stop watching videos. When you’re watching GMAT videos you should be then taking a step back and practicing what you’ve learned. Changing what you’ve learned to see if it’s really sunk in or if you’re really just feeling forward momentum because you’re spending time exposed to the GMAT.

This is sort of a kin to feeling smarter because you carry books around, if you never read the books. You know the book, you know the title and you know the author. If you don’t know what’s inside or you have the story memorized but you don’t know the meaning behind it, the symbolism, why the author wrote it, then you can’t really be said to know the book.

Problem Identification Is Only Half The Work

The GMAT is the same way. It’s very easy to convince ourselves that we’re making progress. Or that we’re proficient by saying “oh yeah that’s a work rate problem. That’s a data sufficiency problem which is a system of equations”. And use that anchor of identification as a way to say I know this when in fact it’s a very surface level understanding.

In order to get to a deeper level, you need to not only recognize what you’re looking at but be able to respond to it in a new and interesting way.

What you need to be able to do is not just recognize the problem when you’re looking at those types of problems but recognize them within the general universe of other types of problems that you’re looking at. Just like when you’re sitting in the exam. A core skill is being able to not just recognize the problem but also have a good idea of what to do when you encounter that type of problem.

A work rate problem, to take this example further isn’t a particular problem, it’s a category of problems. Depending upon the way they introduce this problem determines what solution paths, what avenues of approach are going to be the most useful, the most time-efficient and depending on your learning style the most intuitive for you. The skill that you really want to grow in watching GMAT videos is using them as a basis in order to have a better sense of what you ought to be doing. That is, develop the skill of decision-making in an unknown environment not just identification.

Continue to Watch GMAT Videos

As you continue to watch videos keep this in mind but if you’re sitting there just watching video after video, frankly you’re wasting your time. Be sure to take a step back and ensure that you’re able to not just replicate what you’ve seen done in a video but to understand when it’s appropriate to use it and be prepared to do so in a less confined, less predetermined setting. I hope that is helpful and it’s not designed to make you feel bad about what you’re doing but to enhance what you’re doing. I’ll see you guys next time.

If you enjoyed this video watch: How to Avoid Stupid Mistakes on the GMAT.

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Posted on
24
Mar 2020

Stupid Mistakes – How to Avoid Them on the GMAT

Stupid Mistakes On The GMAT

Hi guys. Welcome back to Apex GMAT’s channel. It’s Mike here and today I want to talk about stupid mistakes and let’s start how just with nomenclature. The idea of a stupid mistake is something that we really don’t like here. We don’t like the word dumb. We don’t like the word stupid because even if you’re saying it in a “haha” joking way and you’ve got high self-esteem and a lot of intellectual rigor you’re suddenly putting yourself down. You’re also drawing away attention from the core reasons for these errors.

Careless Mistakes

So we like to call them careless mistakes or careless errors and this allows them to be addressed to be solvable. If you’ve done a stupid mistake either you’re stupid, hopefully not, or you’ve done something foolish. What you’re doing is offloading the responsibility for that error to it being unavoidable. I was not functioning well so I did it rather than addressing the root cause. This is not that you made an error but that there’s a step before the error was made where you failed to catch the error. That step can be before or after the actual processing error was made. Most often it’s sourced from a lack of attentiveness. You’ve missed a detail because you haven’t read closely enough or you crossed your wires through what they call labeling error. Where you’ve called one thing by the wrong name and stored it incorrectly in your head.

Difficulty of Addressing Careless Mistakes

Careless errors are notoriously difficult to address, but the first step is recognizing what they are. They’re processing errors that require your attention and this is something very different than any intellectual failing. It doesn’t matter how smart you are, everybody makes careless errors. Frankly the more rapidly you think the more sort of cycles your brain goes through in a given second or minute the more likely you are to make a careless error. So what differentiates people who make many versus those who make few? Infact the people who make fewer careless errors make just as many as those who make more except they tend to catch them.

How to Work On Them

There are heuristics that we can work on both to preempt careless errors but also to recognize them. Numerically for example you often catch a careless error by noticing that the number doesn’t sound right. If I tell you that it is 150 degrees out. Fahrenheit or Celsius you know that that number doesn’t sound right because it’s anchored to a reality. A lot of times when we’re doing math on the GMAT or in life we don’t have a good anchor for those numbers so the idea of a reasonable or unreasonable number doesn’t get to go through that cognitive filter. So anchoring whether it’s to temperature or money or number of pumpkins in a field, gives us this added check in order to catch a careless error when we make it.

Pivot Questions

Similarly, when we’re reading a word problem or we’re looking at a verbal problem a lot of times using pivot questions to prioritize and understand and really call out what it is we’re trying to do allows us to be both sensitized when we do make the inevitable error but often get in front of many of the errors that we might otherwise make.

Once again, I want to emphasize that careless errors are not intellectual errors. It has nothing to do with being smart or knowing your stuff and so the moment you write off a dumb or stupid error as oh I need to study that again or I forgot that but I’ll remember it next time you’ve already missed your opportunity to improve. So thanks for watching this video guys check out more below. Remember careless errors are both inevitable and solvable. So looking forward to catching you next time and continue prepping.

If you enjoyed this video you can watch: GMAT Scoring Plateaus

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Posted on
14
Mar 2020

Remainder Number Theory Problem

Today we’re going to be looking at this problem and our big question is that originally we’re given this unknown number N and we know we just have a remainder 3. So the problem is presenting us information in a way that we’re not used to seeing it and what we need to do is work backwards from this to drive the core insights.

Sorting Through the Information

So if we have a remainder of 3 on 23 this means that the chunk that isn’t remainder is 20. So what can our n be in those cases that will allow us to divide out by 20 and leave this remainder 3.

Well first we know that n has to be greater than 3 because in order to have a remainder the amount we’re dividing by has to be something greater. The moment the remainder equalizes the thing we’re dividing by of course we get one more tick in the dividing by box and the remainder goes back down to zero.

Solving

So with 23 and a remainder of 3 our key number to look at is 20. Our factors of 20, that is the things that divide evenly into 20, are 1, 2, 4, 5, 10 and 20. Of course 1 and 2 are below 3 and so they’re not contenders. So we end up with n being 4, 5, 10 or 20.

Check Against the Statements

So for number 1: Is N even? If N can be 4 but can also be 5 then we’re not assured that it’s even. Notice the data sufficiency problem type embedded here. So N is not necessarily even.

Is N a multiple of 5? Once again N is not because N could be 4 or 5. Finally, is in a factor of 20? And in this case it is because 4, 5, 10 and 20 as we just said are all factors of that 20 that we’re looking for. So our answer here is 3 alone, answer choice A.

More Practice

Now here’s a more challenging problem at the same form, see if you can do it and we’re going to come back and in the next video talk about the solution and give you another problem.

So if 67 is divided by some integer N the remainder is 7. Our three things to look at are whether:

    • N is even?
    • If N is a multiple of 10?
    • Or N is a factor of 120?

So give this one a try and see if you can use the principles from the easier problem on this more challenging one to make sure that you actually understand what’s going on. If not, re-watch this video and see if a review might allow you to answer this question.

If you enjoyed using this video for practice, try this one next: Wedding Guest Problem.

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Apex GMAT Must Have GMAT Study Tips

GMAT Tips

  1. If you’re doing math, you’re doing something wrong.
  2. Sleep at least 8 hours a day.
  3. Consistency is more important than intensity when prepping for the GMAT.
  4. Memorize Data Sufficiency choices.
  5. Practice your mental math.
  6. Prep without the time constraint until you understand to topic/section, then add time constraints.
  7. Don’t prep for the GMAT using practice tests only.
  8. Study at least 10 hours a week.
  9. Take a break from studying the day before the test and just relax.
  10. Visit the testing center prior to your exam to alleviate the stress associated with being there on test day.
  11. Understand your mistakes.
  12. Feed your brain for success. Consistency read publications such as the Economist, Financial Times, Time Magazine etc.

To watch our instructors go in to detail about the most important GMAT tips watch: 6 Things GMAT Preppers Get Wrong

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Posted on
12
Feb 2019

If you’re doing math on the GMAT, watch this.

I want to discuss one of the core tenents of Apex’s quantitative philosophy on the GMAT. “If you’re doing math, you’re doing something wrong.” Meaning, if you find yourself doing math, that’s a signal from the exam that you’re using a sub-optimal solution path. By math I don’t mean any calculation whatsoever, but any calculations that aren’t reasonable. That don’t come out easily, neatly and cleanly, once you’re well practiced with mental math. So it’s not that we’ll never do a calculation, but every calculation we do should be deliberate and smooth.

The Most Overused Solution Path

Let’s go a little deeper into this, because it’s a really important concept. Many, many people preparing for the GMAT spend way too much time worrying about the math. Being freaked out about the math and on the exam doing the math. The applied mathematical solution path is the most over used solution path on the quantitative side of the GMAT. Particularity among engineers, and with people who do a lot of self-prepping. They look to the back of the book or look to previous experience as students. And get caught up in the idea that their answer needs to be precise. This gets in the way of using our estimation solution path or other higher solution paths, which can get us to the correct answer much more quickly.

The GMAT isn’t Testing Your Math Skills

How do we know that math is not what the GMAT wants us to do? It’s quite simple. If the GMAT was the referendum on how well you can do mental math, then the scores would reflect your ability to do so. MBA programs at top business schools would be filled with people with extraordinary, almost savant like mental math abilities. We know this isn’t the case.

Actually, as we improve on our mental math, we get diminishing returns with it. So we see a lot of clients getting up to the 70th, 80th, or 90th percent level even, on the quantitative side of things. Then, all of a sudden they plateau; they can’t get any higher. The reason is they are so focused on the math. They are missing the bigger logical reasoning picture or the structure of quantitative problems that doesn’t rely on doing math that allows both quick and accurate solutions.

Key Things to Avoid

While math has its place, we want to be sure that we’re not putting it on a pedestal. And that when we’re performing computations, we’re doing so with great deliberation, intentionality, and that we have a good reason for doing any computation we’re doing. If you find yourself diving into the equation or doing a lot of processing, stop. Say “Wait a minute, there must be a better way to do this.”

Another option is that sometimes you make a basic error early on and that leads to ugly numbers and math. But you should never, never, never be multiplying decimals out to the fourth decimal. That sort of math is the true trigger, the true signal, that there’s a better way to solve the problem. When you’re self prepping, this is what you want to look for.

So by the time you get to the exam, you’re not catching yourself doing math, but you’ve already incorporated it into your process, the fact that math shouldn’t be your default.

So, remember, guys, if you’re doing math, you’re doing something wrong and you can take this one to the bank.

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Posted on
12
Feb 2019

Profit & Loss Problem Form

The profit and loss problem form that this problem fits into is one that has strong DSM’s into mathematics. Here we are tempted to do the math in part because that’s so easy. It’s so available to us.

This is characteristic of a mid-level arithmetic problem where there’s some shifts and shimmies but overall it’s a fairly straightforward problem that utilizes no more than the four basic operations. So on the one hand this profit and loss problem is pre-algebra or even sort of grade school math. On the other this makes the solution path much more elusive.

Solving the Problem Using Math

So of course we can follow the math. We can add up all the costs, five thousand plus two dollars, times twenty thousand. Then contrast that with the revenue that comes in which is 12×20,000. But then we’re left with the ugly division problem that brings us to the profit per t-shirt. This is where the GMAT sticks us.

Instead of handling this in aggregate it’s strongly preferable to handle it with a higher level solution path. Let’s take a look at a few:

Higher Level Solution Path: Distribution

One way to do this is to distribute the fixed cost over the cost per t-shirt. This is actually a lot easier than it seems. Twenty thousand t-shirts, five thousand dollars, five over twenty is one-quarter.

Therefore, it costs one-quarter per t-shirt in addition to the two dollars in variable cost. So twelve minus two is equal to ten dollars, minus one quarter is equal to nine dollars and seventy-five cents.

Higher Level Solution Path: Graphical Equalization

We can also use a graphic equalization method in order to get to the same conclusion. If the numbers were more complicated, understanding that that shift is one-quarter down. That is the fixed cost is one-quarter down.

Then we know we’re looking for something that ends in a seventy-five cents. That allows us to eliminate all the answer choices that don’t end in 0.75. Then we can use scale to determine that 9.75 is the correct answer.

Practice Problems

There are more complicated versions of this problem form. In particular, I’d encourage you to explore being told that the t-shirt company is breaking even. Then determining the amount of variable costs or fixed cost that’s there or even the production run. Similarly, you can be given a target profit or loss, the break-even just being the zero, so it’s a bit easier and have to reverse engineer the relationships.

Once again, this doesn’t have to be done algebraically. As you begin to appreciate the subtlety of the ratio between costs production run and total P&L all of these problems should be simplified and should be very straightforward.

Continue your GMAT practice with the Wedding Guest GMAT problem.

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