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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## An electrical supplies store sells 140 power stabilizer tagged by: AAPL ##### This topic has 3 expert replies and 0 member replies ### Top Member ## An electrical supplies store sells 140 power stabilizer ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult Economist GMAT An electrical supplies store sells 140 power stabilizers every week. If each power stabilizer costs the store$16, what is the minimum selling price per unit that will ensure a weekly profit of at least $5600 from sales of power stabilizers? A. 24 B. 26 C. 40 D. 56 E. 60 The OA is D ### GMAT/MBA Expert GMAT Instructor Joined 08 Dec 2008 Posted: 12982 messages Followed by: 1249 members Upvotes: 5254 GMAT Score: 770 AAPL wrote: Economist GMAT An electrical supplies store sells 140 power stabilizers every week. If each power stabilizer costs the store$16, what is the minimum selling price per unit that will ensure a weekly profit of at least $5600 from sales of power stabilizers? A. 24 B. 26 C. 40 D. 56 E. 60 The OA is D Let x = the selling price per unit So, x - 16 = the PROFIT on ONE unit And 140(x - 16) = the PROFIT on the sale of 140 units (aka the weekly profit) What is the minimum selling price per unit that will ensure a weekly profit of at least$5600 from sales of power stabilizers?
In other words, we want: weekly profit â‰¥ 5600
Or we can write: 140(x - 16) â‰¥ 5600
Divide both sides by 140 to get: x - 16 â‰¥ 40
Add 16 to both sides to get: x â‰¥ 56

So, the selling price per unit must be $56 or greater Answer: D Cheers, Brent _________________ Brent Hanneson â€“ Creator of GMATPrepNow.com Use my video course along with Sign up for free Question of the Day emails And check out all of these free resources GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMATâ€™s FREE 60-Day Study Guide and reach your target score in 2 months! ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15348 messages Followed by: 1864 members Upvotes: 13060 GMAT Score: 790 AAPL wrote: Economist GMAT An electrical supplies store sells 140 power stabilizers every week. If each power stabilizer costs the store$16, what is the minimum selling price per unit that will ensure a weekly profit of at least $5600 from sales of power stabilizers? A. 24 B. 26 C. 40 D. 56 E. 60 Since at least$5600 in profit must be earned by 140 units, the minimum required markup per unit = 5600/140 = $40. Thus, the minimum selling price = (cost per unit) + (minimum required markup per unit) = 16+40 = 56. The correct answer is D. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2791 messages Followed by: 18 members Upvotes: 43 AAPL wrote: Economist GMAT An electrical supplies store sells 140 power stabilizers every week. If each power stabilizer costs the store$16, what is the minimum selling price per unit that will ensure a weekly profit of at least $5600 from sales of power stabilizers? A. 24 B. 26 C. 40 D. 56 E. 60 The OA is D We use the profit formula: revenue - cost = profit. We can create the following inequality in which n = selling price per unit: 140n - 140 x 16 â‰¥ 5600 140(n - 16) â‰¥ 5600 n - 16 â‰¥ 40 n â‰¥ 56 Alternate Solution: Since the store sells 140 power stabilizer each week, in order to make a profit of$5600, the store must make a profit of at least 5600/140 = $40 on each power stabilizer. Since the cost of a power stabilizer is$16, the selling price of each power stabilizer must be at least 16 + 40 = $56. Answer: D _________________ Scott Woodbury-Stewart Founder and CEO scott@targettestprep.com See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews • FREE GMAT Exam Know how you'd score today for$0

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