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The total cost of producing item \(Y\) is equal to the sum of item \(Y\)'s fixed cost and variable cost. If the variable

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by M7MBA » Sun May 10, 2020 11:20 am

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The total cost of producing item \(Y\) is equal to the sum of item \(Y\)'s fixed cost and variable cost. If the variable cost of producing \(Y\) decreased by 10% in January, by what percent did the total cost of producing item \(Y\) change in January?

(1) The fixed cost of producing item \(Y\) increased by 12% in January.

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

[spoiler]OA=C[/spoiler]

Source: Manhattan GMAT
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