A manufacturer makes and sells 2 products, P and Q. The revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00. Last year the manufacturer sold twice as many units of Q as P. What was the manufacturer's average (arithmetic mean) revenue per unit sold of these 2 products last year?
A) $28.50
B) $27.00
C) $19.00
D) $18.50
E) $18.00
E
OG A manufacturer makes and sells 2 products
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Hi AbeNeedsAnswers,
We're told that the revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00 and the manufacturer sold TWICE as many units of Q as P last year. We're asked for the average revenue per unit sold of these 2 products last year. This question can be solved by TESTing VALUES.
IF.... we sold 2 units of Q and 1 unit of P, we would have....
(2)($17.00) + (1)($20.00) = $54 in revenue....
The average of those 3 units would be $54/3 = $18
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
We're told that the revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00 and the manufacturer sold TWICE as many units of Q as P last year. We're asked for the average revenue per unit sold of these 2 products last year. This question can be solved by TESTing VALUES.
IF.... we sold 2 units of Q and 1 unit of P, we would have....
(2)($17.00) + (1)($20.00) = $54 in revenue....
The average of those 3 units would be $54/3 = $18
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
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We can let the number of P units sold = n and the number of Q units sold = 2n, and thus:AbeNeedsAnswers wrote:A manufacturer makes and sells 2 products, P and Q. The revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00. Last year the manufacturer sold twice as many units of Q as P. What was the manufacturer's average (arithmetic mean) revenue per unit sold of these 2 products last year?
A) $28.50
B) $27.00
C) $19.00
D) $18.50
E) $18.00
[(20 x n) + (17 x 2n)]/(n + 2n)
(20n + 34n)/3n
54n/3n = $18.00
Alternate Solution:
Quick solution: Imagine that he sold just 2 units of Q and 1 of P. His revenue would then be
Revenue = 2 x 17 + 1 x 20 = 54.
The arithmetic average for the 3 items sold would then be 54/3 = 18.
Answer: E
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Hi AbeNeedsAnswers,
We're told that the revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00 and the manufacturer sold TWICE as many units of Q as P last year. We're asked for the average revenue per unit sold of these 2 products last year. This question can be solved by TESTing VALUES.
IF.... we sold 2 units of Q and 1 unit of P, we would have
(2)($17.00) + (1)($20.00) = $54 in revenue....
The average of those 3 units would be $54/3 = $18
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
[/quote]
Why wouldn't we just take the average of (20 + 17)/2 ?
Isn't it still the average revenue sold per unit?
We're told that the revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00 and the manufacturer sold TWICE as many units of Q as P last year. We're asked for the average revenue per unit sold of these 2 products last year. This question can be solved by TESTing VALUES.
IF.... we sold 2 units of Q and 1 unit of P, we would have
(2)($17.00) + (1)($20.00) = $54 in revenue....
The average of those 3 units would be $54/3 = $18
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
[/quote]
Why wouldn't we just take the average of (20 + 17)/2 ?
Isn't it still the average revenue sold per unit?