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Register now and save up to $200 Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code ## Last month, all units of product X produced by a certain com This topic has 2 expert replies and 0 member replies bounce87 Junior | Next Rank: 30 Posts Joined 26 Mar 2016 Posted: 16 messages #### Last month, all units of product X produced by a certain com Fri Sep 22, 2017 8:58 pm Elapsed Time: 00:00 • Lap #[LAPCOUNT] ([LAPTIME]) Last month, all units of product X produced by a certain company sold out and the company's total cost were equal to$90000 plus 10 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last month , was the unit price of product X sold greater than $5 ? 1. The company’s total costs of all units of X product sold were$120,000.

2. The number of all Units of product X sold last month is less than 20000.

I didn't understand how the second statement is sufficient.
Is this correct? pq > 90000 + pq/10. But it is also given that q<20000.

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### GMAT/MBA Expert

Jay@ManhattanReview GMAT Instructor
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Mon Sep 25, 2017 12:45 am
bounce87 wrote:
Last month, all units of product X produced by a certain company sold out and the company's total cost were equal to $90000 plus 10 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last month , was the unit price of product X sold greater than$5 ?

1. The company’s total costs of all units of X product sold were $120,000. 2. The number of all Units of product X sold last month is less than 20000. I didn't understand how the second statement is sufficient. Is this correct? pq > 90000 + pq/10. But it is also given that q<20000. Please explain! Say Total cost = C, and total Revenue is R Thus, C = 90,000 + 10% of R C = 90,000 + R/10 ---(1) Statement 1: The company’s total costs of all units of X product sold were$120,000.

C = 120,000

Thus, from (1), we get

120,000 = 90,000 + R/10

R = $30,000 We do not know the number of units, thus, we cannot ascertain if the unit price of product X sold greater than$5. Insufficient.

Statement 2: The number of all units of product X sold last month is less than 20,000.

We have C = 90,000 + R/10 and we know that the profit was made, thus, R > C

Thus, R > 90,000 + R/10

9R/10 > 90,000

R > 100,000

Say the number of all units of product X sold last month is 20000.

Thus, unit price of product X sold = R/20000 > 100,000/20,000 > 5.

Since 100,000 divided by 20,000 is 5, thus 100,000 divided by a number less than 20,000 must be greater than 5. Sufficient.

The correct answer: B

Hope this helps!

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Rich.C@EMPOWERgmat.com Elite Legendary Member
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Mon Sep 25, 2017 3:38 pm
Hi bounce87,

What is the source of this question? I ask because the prompt you've posted is almost identical to this Official Guide Question:

http://www.beatthegmat.com/a-certain-company-og13-t116753.html

But it appears that someone has moved the 'pieces' of the prompt around and changed the prompt slightly (although it has the same correct answer).

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