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# A motorcycle importer is planning on increasing the price

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Senior Manager
Joined: 14 Aug 2006
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A motorcycle importer is planning on increasing the price [#permalink]  10 Dec 2006, 11:50
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A motorcycle importer is planning on increasing the price of a certain model by \$ 1000. At this new price 5 fewer bikes were sold a month, but the total revenues will increase by 26,000 to 594,000. What is the number of bikes the manufacturer will sell at this price

A 51
B 61
C 66
D 71
E 76
Manager
Joined: 10 Jul 2006
Posts: 75
Followers: 1

Kudos [?]: 1 [0], given: 0

[#permalink]  10 Dec 2006, 15:50
The shortest way I could think of to solve this prob is to set up equations first, then backsolve.

P: the price of each bike before the increase
B: the number of bikes before the increase

Then the change in revenue is
1000(B-5) - 5P = 26000

we also have P*B = 594000 - 26000 = 568 000.

Backsolve starting with B. Since B-5 = 61, 5P = 61 000 - 26 000. P = 7000. PB < 568 000. Eliminate A and B.

Backsolve with D, we will have PB>586000.

Then, C must be the answer
[#permalink] 10 Dec 2006, 15:50
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# A motorcycle importer is planning on increasing the price

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