If xerox paper costs 5 cents a sheet and a buyer gets 10% discount on all xerox paper one buys after the first 2000 papers and 20% discount after first 10000 papers, how much will it cost to buy 25000 sheets of xerox paper?
A. $1250
B. $1060
C. $1350
D. $900
E. $1000
The OA is B.
I got confused here. I need some help. Experts can you tell me how to solve it?
If xerox paper costs 5 cents a sheet and a buyer. . .
This topic has expert replies
GMAT/MBA Expert
- [email protected]
- Elite Legendary Member
- Posts: 10392
- Joined: Sun Jun 23, 2013 6:38 pm
- Location: Palo Alto, CA
- Thanked: 2867 times
- Followed by:511 members
- GMAT Score:800
Hi Vincen,
To start, the GMAT almost always lists the answer choices 'in order' (often from least to greatest although sometimes in decreasing order). You can sometimes take strategic advantage of that information, so it's important to make sure that you're using practice questions that follow that design pattern. That all having been said, to answer this question, we need to break the calculation down in to 'pieces' (based on the cost/discount of each piece):
The cost of the first 2,000 sheets
The cost of the next 8,000 sheets
The cost of the final 15,000 sheets
At $0.05 per sheet, the first 2,000 sheets would cost (2,000)($0.05) = $100
Since a 10% discount is applied to the TOTAL cost of the next 8,000 sheets, that cost would be....
(8,000)($0.05) = $400 - (.1)($400) = $360
A 20% discount is applied to the TOTAL cost of the final 15,000 sheets....
(15,000)($0.05) = $750 - (.2)($750) = $600
Total Cost = $100 + $360 + $600 = $1060
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
To start, the GMAT almost always lists the answer choices 'in order' (often from least to greatest although sometimes in decreasing order). You can sometimes take strategic advantage of that information, so it's important to make sure that you're using practice questions that follow that design pattern. That all having been said, to answer this question, we need to break the calculation down in to 'pieces' (based on the cost/discount of each piece):
The cost of the first 2,000 sheets
The cost of the next 8,000 sheets
The cost of the final 15,000 sheets
At $0.05 per sheet, the first 2,000 sheets would cost (2,000)($0.05) = $100
Since a 10% discount is applied to the TOTAL cost of the next 8,000 sheets, that cost would be....
(8,000)($0.05) = $400 - (.1)($400) = $360
A 20% discount is applied to the TOTAL cost of the final 15,000 sheets....
(15,000)($0.05) = $750 - (.2)($750) = $600
Total Cost = $100 + $360 + $600 = $1060
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
GMAT/MBA Expert
- Jeff@TargetTestPrep
- GMAT Instructor
- Posts: 1462
- Joined: Thu Apr 09, 2015 9:34 am
- Location: New York, NY
- Thanked: 39 times
- Followed by:22 members
The first 2,000 sheets cost 2,000 x 5 = 10,000 cents = 100 dollars.Vincen wrote:If xerox paper costs 5 cents a sheet and a buyer gets 10% discount on all xerox paper one buys after the first 2000 papers and 20% discount after first 10000 papers, how much will it cost to buy 25000 sheets of xerox paper?
A. $1250
B. $1060
C. $1350
D. $900
E. $1000
The next 8,000 sheets cost 8,000 x 5 x 0.9 = 36,000 cents = 360 dollars.
The last 15,000 sheets cost 15,000 x 5 x 0.8 = 60,000 cents = 600 dollars.
Thus, the total for 25,000 sheets is 100 + 360 + 600 = 1,060 dollars.
Answer: B
Jeffrey Miller
Head of GMAT Instruction
[email protected]
See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews