Greatest possible selling price

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Greatest possible selling price

by malolakrupa » Mon Aug 04, 2008 7:52 am
Company C sells a line of 25 products with an average retail price of $1,200. If none of these products sells for less than $420, and exactly 10 of the products sell for less than $1,000, what is the greatest possible selling price of the most expensive product?

a) $2,600
b) $3,900
c) $7,800
d) $11,800
e) $18,200

I don't know the answer.
Source: — Problem Solving |

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by eccentric » Mon Aug 04, 2008 8:10 am
My pick is 11800 choice D

10 product is not less than 420 lets assume exactly all 10 sell for 420 and these are all less than 1000
we have expression:
30000 - 14(1000) - 10(420)

Regards

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by malolakrupa » Mon Aug 04, 2008 8:12 am
I dont get the part where you say

10 product is not less than 420 lets assume exactly all 10 sell for 420 and these are all less than 1000

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by dbart06 » Mon Aug 04, 2008 11:39 am
i agree with eccentric.

Total value of 25 products with avg 1200 = 30000
10 products is < 1000 but > 420, we need 14 other products to be 1000, thus leaving 1 product with the greatest value.
30,000 -14(1000) - 10(420)=11800

The question is telling you that no product is less than 420 but 10 products are less that 1000.

Hope it helps

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by malolakrupa » Tue Aug 05, 2008 8:27 am
Thanks dbart06 and eccentric . It is still fuzzy though.