A furniture store sells only two models of desks, model A

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AAPL: Moderator; Posts: 2710; Joined: Sun Oct 29, 2017 2:08 pmFollowed by: 2 members

by AAPL » Sat Dec 08, 2018 2:03 pm

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A furniture store sells only two models of desks, model A and model B. The selling price of model A is $120, which is 30 percent of the selling price of the model B. If the furniture store sells 2,000 desks, 3/4 of which are model B, what is the furniture store's total revenue from the sale of desks?

A. $ 114,000
B. $186,000
C. $294,000
D. $380,000
E. $660,000

OA E.

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Source: Beat The GMAT — Problem Solving | Sat Dec 08, 2018 2:03 pm

fskilnik@GMATH: GMAT Instructor; Posts: 1449; Joined: Sat Oct 09, 2010 2:16 pmFollowed by: 33 members; Thanked: 59 times

by fskilnik@GMATH » Sat Dec 08, 2018 4:20 pm

AAPL wrote:Official Guide

A furniture store sells only two models of desks, model A and model B. The selling price of model A is $120, which is 30 percent of the selling price of the model B. If the furniture store sells 2,000 desks, 3/4 of which are model B, what is the furniture store's total revenue from the sale of desks?

A. $ 114,000
B. $186,000
C. $294,000
D. $380,000
E. $660,000

$$\left\{ \matrix{
{\rm{model}}\,A\,:\,\,\,\,A = {1 \over 4}\left( {2000} \right) = 500\,\,{\rm{units}}\,\,,\,\,\$ 120/{\rm{unit}} \hfill \cr
{\rm{model}}\,{\rm{B}}\,{\rm{:}}\,\,\,\,B = 1500\,\,{\rm{units}}\,\,,\,\,{\rm{\$ }}{{120} \over {0.3}} = 400/{\rm{unit}} \hfill \cr} \right.$$

$$? = 500 \cdot \left( {120 + 3 \cdot 400} \right) = 60 \cdot {10^3} + 60 \cdot {10^4} = 66 \cdot {10^4}\,\,\,\left[ \$ \right]$$

This solution follows the notations and rationale taught in the GMATH method.

Regards,
Fabio.

Fabio Skilnik :: GMATH method creator ( Math for the GMAT)
English-speakers :: https://www.gmath.net
Portuguese-speakers :: https://www.gmath.com.br

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8211; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Mon Mar 18, 2019 5:36 pm

AAPL wrote:Official Guide

A furniture store sells only two models of desks, model A and model B. The selling price of model A is $120, which is 30 percent of the selling price of the model B. If the furniture store sells 2,000 desks, 3/4 of which are model B, what is the furniture store's total revenue from the sale of desks?

A. $ 114,000
B. $186,000
C. $294,000
D. $380,000
E. $660,000

OA E.

We are given that the selling price of model A is $120, which is 30% of the selling price of model B. Thus, the selling price of model B is:

(0.3)B = 120

B = 120/0.3 = $400

We are also given that (3/4)(2,000) = 1500 model B desks were sold, and thus 2,000 - 1500 = 500 model A desks were sold.

Therefore, the total revenue for the desks is (120 x 500) + (400 x 1500) = 60,000 + 600,000 = $660,000.

Answer: E

Scott Woodbury-Stewart
Founder and CEO
[email protected]

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[email protected]: Elite Legendary Member; Posts: 10392; Joined: Sun Jun 23, 2013 6:38 pmFollowed by: 511 members; Location: Palo Alto, CA; Thanked: 2867 times; GMAT Score:800

by [email protected] » Tue Mar 19, 2019 4:34 pm

Hi All,

We're told that a furniture store sells only two models of desks, model A and model B. The selling price of model A is $120, which is 30 percent of the selling price of the model B - and the furniture store sells 2,000 desks, 3/4 of which are model B. We're asked for the TOTAL revenue of the furniture store from the sale of desks. This question can be approached in a couple of different ways, but the answer choices are written in such a way that can beat it with a bit of critical thinking and a little Arithmetic.

To start, IF all 2000 desks were sold for $120 each, then the total revenue would be $240,000. That immediately eliminates Answers A and B.

The prompt tells us that the cost of a Model B desk is MORE THAN 3 TIMES that of a Model A desk AND that MOST of the desks sold are Model Bs...

IF we sold 1000 desks at $120 each and 1000 desks at $360 each, then the total revenue would be $120,000 + $360,000 = $480,000. However, the price of Model B is MORE than $360 AND we actually sold far MORE Model B desks than Model A desks. Thus, the revenue would be a LOT higher than $480,000. There's only one answer that fits...

Final Answer: E

GMAT assassins aren't born, they're made,
Rich

Contact Rich at [email protected]

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