CAT, Charity Auction Question.

[abhishekgoel22]

Email from executive director to charity staff

May 5, 3:14 p.m.

Our annual Grand Ball and Silent Auction will be on October 12th this year. The venue has a maximum capacity of 1,098 people (including servers and other workers). We need to determine how to maximize attendance while not going over the capacity limit.

In addition, I’d like to offer 100 lots for auction, and we will be running a pledge table again this year. Our goal is to raise a total of $250,000 from the auction and pledges combined.


Email from auction coordinator in response to the director’s May 5, 3:14 p.m. message

May 6, 9:33 a.m.

Last year, we invited 1,813 people and 1,492 accepted. Of those, 1,378 actually attended. We could probably plan on similar response and attendance rates this year. All of the companies who gave items to be auctioned last year are donating again this year, except for 2, so that accounts for 56 lots. In addition, my team has already secured an additional 12 items for the auction; I’m certain we can reach 100 items. Last year, we raised $131,000 from pledges made during the event and the auction brought in an additional $73,000. This year’s lots should go for about the same price on average, so the 42 additional auction lots this year should be enough to raise the additional $50,000 needed

Email from executive director to auction coordinator in response to the auction coordinator’s May 6, 9:33 a.m. message

May 9, 12:48 p.m.

Maybe we should think about moving to a larger venue so we make sure that we don’t exceed the capacity limit. Last Saturday night, the opera’s benefit gala was almost shut down because they had too many people. Assume that about 10% of the people will be servers and other workers. We would lose our deposit though. Well, if our projections are accurate, we should be fine at this venue.



If the charity is able to raise an average of $1,500 per lot (auctioned item), and assuming that the maximum capacity of the venue will be met, what must be the approximate average pledge per invited guest in order to reach the $250,000 goal?
A. $90
B. $100
C. $110
D. $120
E. $130

I have a problem with explanations. Can someone please explain the solution?
Spoiler: Shouldn't the invited guests be similar to the ratio in Email 2, which would give you 1300, not 988.
OA: B

[Sage Pearce-Higgins]

Apologies for the slow reply here. Please can you be more specific with your question - which part of the explanation do you not understand?