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An electrical supplies store sells 140 power stabilizers . .

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An electrical supplies store sells 140 power stabilizers . .

by Vincen » Mon Jan 29, 2018 2:57 am
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 the option D.

What is the best way to solve this PS question? Can any expert give me some help? Thanks in advanced.
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by ErikaPrepScholar » Mon Jan 29, 2018 6:07 am
We are looking for the selling price per unit: let's call that x.

We know that profit = sales price - cost. This means that per unit, the profit is: $$x-16$$

We also know that the store sells 140 units per week, making their total weekly profit $$140\left(x-16\right)$$

We want the weekly profit to be at least $5600, or $$140\left(x-16\right)\le5600$$

Solving for x gives $$x-16\le40$$ $$x\le56$$

So the selling price per unit must be at least $56, or answer choice D.
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by Scott@TargetTestPrep » Tue Jan 30, 2018 10:28 am
Vincen wrote: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
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 ≥ 5600

140(n - 16) ≥ 5600

n - 16 ≥ 40

n ≥ 56

Answer: D

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by Scott@TargetTestPrep » Tue Jan 30, 2018 10:28 am
Vincen wrote: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
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 ≥ 5600

140(n - 16) ≥ 5600

n - 16 ≥ 40

n ≥ 56

Answer: D

Scott Woodbury-Stewart
Founder and CEO
[email protected]

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See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

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