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Problem Solving
If each of the four subsidiaries of Corporation R has been granted a line of credit of $700,000 and each of the other subsidiaries of the Corporation R has been granted a line of credit of $112,000, what is the average (arithmetic mean) line of credit granted to a subsidiary of the Corporation R?
(A) $1,568,000
(B) $448,000
(C) $406,000
(D) $313,000
(E) $116,000
The total credit for the four subsidiaries (4*700,000) is $ 2,800,000 and the total credit for the three subsidiaries is (3*112,000) $336,000. The combined total of credit for all the seven subsidiaries is $3,136,000. So, their combined average is $3,136,000/7 = $448,000.
So, the answer is (B).
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