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!
Last month, all units of product X produced by a certain com
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Say Total cost = C, and total Revenue is Rbounce87 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!
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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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:
https://www.beatthegmat.com/a-certain-co ... 16753.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).
GMAT assassins aren't born, they're made,
Rich
What is the source of this question? I ask because the prompt you've posted is almost identical to this Official Guide Question:
https://www.beatthegmat.com/a-certain-co ... 16753.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).
GMAT assassins aren't born, they're made,
Rich