-
beat_gmat_09
- Master | Next Rank: 500 Posts
- Posts: 437
- Joined: Sat Nov 22, 2008 5:06 am
- Location: India
- Thanked: 50 times
- Followed by:1 members
- GMAT Score:580
"Over time, the costs of processing go down because as organizations learn how to do things better, they become more efficient. In color
film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in
1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can
expect that our long experience will enable us to minimize costs and thus maximize profits."
Is the price reduced here ?
In 1970 one paid 50 cents for 5 days, i.e. 10 cents per day.
In 1984 the price is 20 cents for 1 day, i.e. one has to pay 50x20 = 1 $ per 5 days.
The price is doubled instead of getting reduced, as the question stem claims, unless provided a discount on 5 days
Am i getting this correct ?
Any thoughts ?
film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in
1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can
expect that our long experience will enable us to minimize costs and thus maximize profits."
Is the price reduced here ?
In 1970 one paid 50 cents for 5 days, i.e. 10 cents per day.
In 1984 the price is 20 cents for 1 day, i.e. one has to pay 50x20 = 1 $ per 5 days.
The price is doubled instead of getting reduced, as the question stem claims, unless provided a discount on 5 days
Am i getting this correct ?
Any thoughts ?












