The cost, c and the revenue, r are related via the equation

This topic has expert replies
Moderator
Posts: 426
Joined: Tue Aug 22, 2017 8:48 pm
Followed by:1 members
The cost, c and the revenue, r are related via the equation c =ar+b. By how much is the cost increased if the revenue is increased by $10?

1) a=0.5
2) b=5

What's the best way to determine whether statement 1 is sufficient? Can any experts help?

User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Thu Jan 11, 2018 9:18 am
ardz24 wrote:The cost, c and the revenue, r are related via the equation c =ar+b. By how much is the cost increased if the revenue is increased by $10?

1) a=0.5

What's the best way to determine whether statement 1 is sufficient?
Statement 1: a = 0.5
Case 1: original r = 10, new r = 20
In this case:
Original c = (0.5)(10) + b = 5+b
New c = (0.5)(20) + b = 10+b
Cost increase = (new c) - (old c) = (10+b) - (5+b) = 5.

Case 2: original r = 20, new r = 30
In this case:
Original c = (0.5)(20) + b = 10+b
New c = (0.5)(30) + b = 15+b
Cost increase = (new c) - (old c) = (15+b) - (10+b) = 5.

Since the cost increase is THE SAME in each case, SUFFICIENT.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3