Mgmat 6

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Mgmat 6

by simba12123 » Tue Nov 11, 2008 6:47 am
The total cost of producing item X is equal to the sum of item X's fixed cost and variable cost. If the variable cost of producing X decreased by 5% in January, by what percent did the total cost of producing item X change in January?

(1) The fixed cost of producing item X increased by 13% in January.

(2) Before the changes in January, the fixed cost of producing item X was 5 times the variable cost of producing item X.


qa is c
I chose E because I coulnt wrap st. 1 and st.2 together
having trouble grasping this idea!
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by 4meonly » Tue Nov 11, 2008 7:33 am
The total cost of producing item X is equal to the sum of item X's fixed cost and variable cost. If the variable cost of producing X decreased by 5% in January, by what percent did the total cost of producing item X change in January?

(1) The fixed cost of producing item X increased by 13% in January.

(2) Before the changes in January, the fixed cost of producing item X was 5 times the variable cost of producing item X.


T = F + V

(1)
In Jan
T = 1,13F + 0,95V
How F and V correclate?
inSUFF


(2)
Before Jan
F = 5V, so before Jan T = 6V but what after Jan - how F changed?
inSUFF

(1)(2)
6V / 1,13*5V+0,95V = 6V / 6,6V
SUFF
C