Hi, can someone please help to explain the step-by-step instructions (in detail) in the most simplest way and clear to understand.
1-
The total cost for company x to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X's gross profit per tool is.
2-
The present ratio of students to teachers at a certain school is 20 to 1. If the student enrollment were to increase by 50 students and the number of teachers were to increase by 5, the ratio of students to teachers would then be 25 to 1. What is the present number of teachers?
Arithmetic / Algebra
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- albatross86
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Question 1
Total cost = 10,000 + 3*20,000 = 70,000
Selling price = 8*20,000 = 160,000
Profit = Sales - Cost = 160,000 - 70,000 = 90,000
Remember to add the 10,000 but to not multiply that by number of tools because this is just a fixed cost. You should only multiply 3$ per tool with 20,000.
Question 2
S:T = 20:1
So lets say there are 20x students and x teachers Total = 20+x
Now we are adding 50 students and reducing 5 teachers.
This means we have 20x + 50 students and x - 5 teachers.
New ratio = (20x + 50) / (x - 5) = 25 / 1
=> 20x + 50 = 25x - 125
=> 5x = 175
=> x = 35
Therefore the present number of teachers = x = 35
Total cost = 10,000 + 3*20,000 = 70,000
Selling price = 8*20,000 = 160,000
Profit = Sales - Cost = 160,000 - 70,000 = 90,000
Remember to add the 10,000 but to not multiply that by number of tools because this is just a fixed cost. You should only multiply 3$ per tool with 20,000.
Question 2
S:T = 20:1
So lets say there are 20x students and x teachers Total = 20+x
Now we are adding 50 students and reducing 5 teachers.
This means we have 20x + 50 students and x - 5 teachers.
New ratio = (20x + 50) / (x - 5) = 25 / 1
=> 20x + 50 = 25x - 125
=> 5x = 175
=> x = 35
Therefore the present number of teachers = x = 35
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=> x = 35albatross86 wrote:Question 1
Total cost = 10,000 + 3*20,000 = 70,000
Selling price = 8*20,000 = 160,000
Profit = Sales - Cost = 160,000 - 70,000 = 90,000
Remember to add the 10,000 but to not multiply that by number of tools because this is just a fixed cost. You should only multiply 3$ per tool with 20,000.
Question 2
S:T = 20:1
So lets say there are 20x students and x teachers Total = 20+x
Now we are adding 50 students and reducing 5 teachers.
This means we have 20x + 50 students and x - 5 teachers.
New ratio = (20x + 50) / (x - 5) = 25 / 1
=> 20x + 50 = 25x - 125
=> 5x = 175
Therefore the present number of teachers = x = 35
On Question 2: I really do not understand why are you reducing (x-5), and how did you get 20x, I though it was x=15
- albatross86
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Hi,
Sorry I reduced 5 instead of adding 5 because I misread the question.
What I meant is if there were "x" teachers, there must have been "20x" students so that the ratio is 20:1
There used to be 20x students, but now we are adding 50 more, so we have 20x + 50 students
There used to be x teachers, but now we are adding 5, so it should be x+5
So (20x+50) / (x+5) = 25/1
=> 20x + 50 = 25x + 125
5x = 75
x= 15 You are absolutely right
Sorry I reduced 5 instead of adding 5 because I misread the question.
What I meant is if there were "x" teachers, there must have been "20x" students so that the ratio is 20:1
There used to be 20x students, but now we are adding 50 more, so we have 20x + 50 students
There used to be x teachers, but now we are adding 5, so it should be x+5
So (20x+50) / (x+5) = 25/1
=> 20x + 50 = 25x + 125
5x = 75
x= 15 You are absolutely right
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1
total=20,000
C.P=$10,000+(3*20,000)=$70,000
S.P=(20,000*8)=$160,000
Profit=s.p-c.p=$90,000
Gross profit/tool=90,000/20,000=$4.5
2
s-students
t-teachers
s/t=20/1=>s=20t -(1)
(s+50)/(t+5)=25/1
s+50=25t+125
sub vaue of s from (1)
20t+50=25t+125
5t=75
t=15
total=20,000
C.P=$10,000+(3*20,000)=$70,000
S.P=(20,000*8)=$160,000
Profit=s.p-c.p=$90,000
Gross profit/tool=90,000/20,000=$4.5
2
s-students
t-teachers
s/t=20/1=>s=20t -(1)
(s+50)/(t+5)=25/1
s+50=25t+125
sub vaue of s from (1)
20t+50=25t+125
5t=75
t=15
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- albatross86
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Lol this is hilarious!
The original question is students:teachers = 30:1
Here, being incorrectly written as 20:1 solving the equation 20x + 50 = 25x + 125 gives -15 not +15, but I guess we all jumped to the answer
The original question is students:teachers = 30:1
Here, being incorrectly written as 20:1 solving the equation 20x + 50 = 25x + 125 gives -15 not +15, but I guess we all jumped to the answer
~Abhay
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let number of teacher be x ,so number of student=20 xphoenix9801 wrote:Hi, can someone please help to explain the step-by-step instructions (in detail) in the most simplest way and clear to understand.
1-
The total cost for company x to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X's gross profit per tool is.
20,000 tools produced
total production cost=10,000+3*20,000 as (to produce a batch of tools is $10,000 plus $3 per tool)
so total production cost=70,000
selling price of tools=8*20,000=1,60,000
gross profit on selling 20,000 tools=1,60,000 - 70,000=90,000
gross profit on selling 1 tool=90,000/20,000=4.5 ans
2-
The present ratio of students to teachers at a certain school is 20 to 1. If the student enrollment were to increase by 50 students and the number of teachers were to increase by 5, the ratio of students to teachers would then be 25 to 1. What is the present number of teachers?
now student increased by 50 so now student number stand at 20x+50
teacher x+5
student:teacher=25:1
so we can say (20x+50)/(x+5)=(25/1)
20x+50=25x+125
solving this you will get x as -15 and that will be numbe of teacher
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The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X's gross profit per tool isphoenix9801 wrote:Hi, can someone please help to explain the step-by-step instructions (in detail) in the most simplest way and clear to understand.
1-
The total cost for company x to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X's gross profit per tool is.
2-
The present ratio of students to teachers at a certain school is 20 to 1. If the student enrollment were to increase by 50 students and the number of teachers were to increase by 5, the ratio of students to teachers would then be 25 to 1. What is the present number of teachers?
(A) $3.00
(B) $3.75
(C) $4.50
(D) $5.00
(E) $5.50
Solution:
The problem first asks us to calculate the gross profit. The profit equation is as follows:
Profit = Revenue - Cost
In this particular case, we are given VARIABLE REVENUE and VARIABLE COST. This means that Company X makes a certain amount of revenue PER TOOL and has a certain cost PER TOOL. We also are given a FIXED COST. This is a cost that is constant and will not change. Thus we need to take into account the quantity of tools being produced and sold as well as the fixed cost. We can now generate a more detailed profit equation:
Profit = (number of tools sold)(revenue per tool) - [fixed cost + (number of tools made)(cost per tool)]
We are given the following:
fixed cost = $10,000
cost per tool = $3
revenue per tool = $8
Number of tools produced and sold = 20,000
We can now plug all this into our profit equation:
Profit = (number of tools sold)(revenue per tool) - [fixed cost + (number of tools made)(cost per tool)]
P = 20,000 x 8 - [10,000 + (3 x 20,000)]
P = 20,000 x 8 - [10,000 + (3 x 20,000)]
P = 160,000 - [10,000 + 60,000]
P = 160,000 - 70,000
P = 90,000
We have a profit of $90,000 for selling 20,000 tools, but remember that we need to determine the profit PER TOOL. To calculate this, we divide the total profit of $90,000 by the number of tools produced, which is 20,000. We have:
$90,000/20,000 = $9/2 = $4.50
The answer is C
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Head of GMAT Instruction
[email protected]
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