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# A motorcycle importer is planning on increasing the price of

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Director
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A motorcycle importer is planning on increasing the price of [#permalink]

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04 Jul 2005, 07:33
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58% (04:34) correct 42% (05:05) wrong based on 225 sessions

A motorcycle importer is planning on increasing the price of a certain model by $1000. At this new price 5 fewer motorcycles will be sold per month, but the total revenues will increase by$26,000 to $594,000. What is the number of motorcycles the manufacturer will sell at this new price? (A) 51 (B) 61 (C) 66 (D) 71 (E) 76 [Reveal] Spoiler: OA Senior Manager Joined: 17 Apr 2005 Posts: 375 Location: India Followers: 1 Kudos [?]: 23 [1] , given: 0 Re: Word problem [#permalink] ### Show Tags 04 Jul 2005, 07:51 1 This post received KUDOS 2 This post was BOOKMARKED rxs0005 wrote: An importer of bikes is plannig to increase the price of a bike by 1000$.
At this new price 5 fewer bikes will be sold but total revenues will increase by 26000$to 594000$. What is the number of bikes the manufactuer will seell at thhis new price.

Is there a simpler way to do this i got a quadratic equation.

66 bikes.

Got two equations bikes*price = 568 units
(bikes - 5)*(price + 1 ) = 594 units.

factorise 568 = 71 * 8.
use n = 71 and p = 8 in the second , it works.

Hence 66.

HMTG.
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04 Jul 2005, 11:03
HowManyToGo wrote:
66 bikes.

Got two equations bikes*price = 568 units
(bikes - 5)*(price + 1 ) = 594 units.

factorise 568 = 71 * 8.
use n = 71 and p = 8 in the second , it works.

Hence 66.

HMTG.

Substituted $1000 as 1 unit. HMTG. Director Joined: 03 Nov 2004 Posts: 865 Followers: 2 Kudos [?]: 47 [0], given: 0 Re: Word problem [#permalink] ### Show Tags 05 Jul 2005, 02:30 HowManyToGo wrote: rthothad wrote: HowManyToGo wrote: 66 bikes. Got two equations bikes*price = 568 units (bikes - 5)*(price + 1 ) = 594 units. factorise 568 = 71 * 8. use n = 71 and p = 8 in the second , it works. Hence 66. HMTG. Can you be more explicit as to how you deduced bikes*price = 568 units from bikes*units=$568000

Substituted $1000 as 1 unit. HMTG. HMTG, Yes I did follow that, I was more interested in understanding why you did that, how did you know that 1 unit costs$1000.
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05 Jul 2005, 02:36
HowManyToGo wrote:
HowManyToGo wrote:
66 bikes.

Got two equations bikes*price = 568 units
(bikes - 5)*(price + 1 ) = 594 units.

factorise 568 = 71 * 8.
use n = 71 and p = 8 in the second , it works.

Hence 66.

HMTG.

Can you be more explicit as to how you deduced bikes*price = 568 units from bikes*units=$568000 Substituted$1000 as 1 unit.

HMTG.

HMTG, Yes I did follow that, I was more interested in understanding why you did that, how did you know that 1 unit costs $1000. There is no unit which costs$1000, just that I chose that as 1 unit.
Also I did it to reduce big numbers, you can cancel out 1000 on both sides of the original equations , and get it down to what I used.

HMTG.
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10 Dec 2006, 16:50
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
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A motorcycle importer is planning on increasing the price of [#permalink]

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22 Mar 2014, 06:12
A motorcycle importer is planning on increasing the price of a certain model by $1000. At this new price 5 fewer motorcycles will be sold per month, but the total revenues will increase by$26,000 to $594,000. What is the number of motorcycles the manufacturer will sell at this new price? (A) 51 (B) 61 (C) 66 (D) 71 (E) 76 Guys can you help please? This is how I am trying to solve this, but getting no where. New revenue =$594,000
Old revenue = $594,000 -$26,000 = $568,000 Where I am struggling is to choose the variables and form the equation. Can someone please help? _________________ Best Regards, E. MGMAT 1 --> 530 MGMAT 2--> 640 MGMAT 3 ---> 610 GMAT ==> 730 Intern Joined: 06 Sep 2013 Posts: 16 Followers: 0 Kudos [?]: 11 [0], given: 3 Re: A motorcycle importer is planning on increasing the price of [#permalink] ### Show Tags 22 Mar 2014, 13:05 try to think how we calculate revenue, should revenue=unit price*number of items sold if you assume old price is P, number of items sold is N then here is how it looks like (P+1000)*(N-5)=594000, also P*N= 594000-26000 you can solve it from there when you get N=71, remember that is the previous Number of item, you have to minus 5 to get current Math Expert Joined: 02 Sep 2009 Posts: 34527 Followers: 6314 Kudos [?]: 80137 [0], given: 10027 Re: A motorcycle importer is planning on increasing the price of [#permalink] ### Show Tags 23 Mar 2014, 05:55 enigma123 wrote: A motorcycle importer is planning on increasing the price of a certain model by$1000. At this new price 5 fewer motorcycles will be sold per month, but the total revenues will increase by $26,000 to$594,000. What is the number of motorcycles the manufacturer will sell at this new price?

(A) 51

(B) 61

(C) 66

(D) 71

(E) 76

This is how I am trying to solve this, but getting no where.

New revenue = $594,000 Old revenue =$594,000 - $26,000 =$568,000

Where I am struggling is to choose the variables and form the equation. Can someone please help?

Merging similar topics.

Please, search before posting. Thank you.

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Re: A motorcycle importer is planning on increasing the price of [#permalink]

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23 Mar 2014, 20:17
(P+1000)(Q-5)=594000
PQ=568000

subtract them and then substitute for P using 2nd equation

200Q-(568000/Q)=6200
Q^2-31Q-2840=0

then just factor, or plug-in keeping in mind that the answer choices will be 5 less than the positive root in the aforementioned quadratic

C
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Re: A motorcycle importer is planning on increasing the price of [#permalink]

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26 Apr 2014, 16:19
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Actually its not that tough, one can use backsolving on this one

We have that (q-5)(p+1000)=594,000
We also get that pq=568,000

If q-5=66--> q=71

568,000/71=8

Then replace (8000)(71)=568,000

BINGO

Hope this helps
Cheers
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Re: A motorcycle importer is planning on increasing the price of [#permalink]

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20 Nov 2014, 21:56
Hi Bunuel/Karishma - Is there any faster and better way to solve this problem other than plugging in the answer choices in the equations?
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Re: A motorcycle importer is planning on increasing the price of [#permalink]

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20 Nov 2014, 23:29
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rxs0005 wrote:
A motorcycle importer is planning on increasing the price of a certain model by $1000. At this new price 5 fewer motorcycles will be sold per month, but the total revenues will increase by$26,000 to $594,000. What is the number of motorcycles the manufacturer will sell at this new price? (A) 51 (B) 61 (C) 66 (D) 71 (E) 76 Responding to a pm: To solve this question, I will make an equation in x and then make educated guesses. Here's how: Assuming x motorcycles were sold every month initially. (568000/x + 1000)(x-5) = 594000 (568/x + 1)(x-5) = 594 Now 568 = 8*71 Assuming x = 71 (We have all integers so it is obvious that 568/x should be an integer. We get 9*66 = 594 (matches) So he will sell 71 - 5 = 66 bikes this month Answer (C) _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: A motorcycle importer is planning on increasing the price of [#permalink]

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21 Nov 2014, 10:36
VeritasPrepKarishma wrote:
rxs0005 wrote:
A motorcycle importer is planning on increasing the price of a certain model by $1000. At this new price 5 fewer motorcycles will be sold per month, but the total revenues will increase by$26,000 to $594,000. What is the number of motorcycles the manufacturer will sell at this new price? (A) 51 (B) 61 (C) 66 (D) 71 (E) 76 Responding to a pm: To solve this question, I will make an equation in x and then make educated guesses. Here's how: Assuming x motorcycles were sold every month initially. (568000/x + 1000)(x-5) = 594000 (568/x + 1)(x-5) = 594 Now 568 = 8*71 Assuming x = 71 (We have all integers so it is obvious that 568/x should be an integer. We get 9*66 = 594 (matches) So he will sell 71 - 5 = 66 bikes this month Answer (C) Hi Karishma - The above highlighted part in your reply seems to be the most critical part of this problem and it'd be difficult to get the correct option with ease in such a fashion, I guess, under test environment I'm assuming there is no other better approach to tackle this sort of problem, just curious whether there is any strategic way to implement this kind of approach in such problems ? Look forward to your reply. Thank you! _________________ Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6846 Location: Pune, India Followers: 1935 Kudos [?]: 12011 [0], given: 221 Re: A motorcycle importer is planning on increasing the price of [#permalink] ### Show Tags 07 Dec 2014, 22:52 bagdbmba wrote: VeritasPrepKarishma wrote: rxs0005 wrote: A motorcycle importer is planning on increasing the price of a certain model by$1000. At this new price 5 fewer motorcycles will be sold per month, but the total revenues will increase by $26,000 to$594,000. What is the number of motorcycles the manufacturer will sell at this new price?

(A) 51
(B) 61
(C) 66
(D) 71
(E) 76

Responding to a pm: To solve this question, I will make an equation in x and then make educated guesses. Here's how:

Assuming x motorcycles were sold every month initially.

(568000/x + 1000)(x-5) = 594000
(568/x + 1)(x-5) = 594

Now 568 = 8*71
Assuming x = 71 (We have all integers so it is obvious that 568/x should be an integer.
We get 9*66 = 594 (matches)
So he will sell 71 - 5 = 66 bikes this month

Hi Karishma - The above highlighted part in your reply seems to be the most critical part of this problem and it'd be difficult to get the correct option with ease in such a fashion, I guess, under test environment

I'm assuming there is no other better approach to tackle this sort of problem, just curious whether there is any strategic way to implement this kind of approach in such problems ?

Thank you!

You often get questions involving product of two terms such that one increases and other decreases such that the overall product changes e.g.
Price*Quantity = Revenue
Speed*Time = Distance

In such cases, it is best to make equations and then plug in values.

Also, when dealing with ominous numbers such as 568 and 594, you should know that you cannot calculate taking these numbers in your stride. Hence, you must factor them out and see what you can cancel out or what value of x becomes obvious.
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews GMAT Club Legend Joined: 09 Sep 2013 Posts: 11191 Followers: 512 Kudos [?]: 134 [0], given: 0 Re: A motorcycle importer is planning on increasing the price of [#permalink] ### Show Tags 30 May 2016, 12:25 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Manager Joined: 08 Dec 2015 Posts: 204 GMAT 1: 600 Q44 V27 Followers: 1 Kudos [?]: 7 [0], given: 33 Re: A motorcycle importer is planning on increasing the price of [#permalink] ### Show Tags 15 Jun 2016, 04:21 Can this work? Ones you get the equation 594,000=(n-5)(p+1000) n=nº. of bikes, p=price So now you have that (n-5) -> whatever that is times (p+1000) -> whatever that is, equals 594,000. So just like a simple multiples problem. Takes the thousands away. 594 (2*2*3*3*11) = (something which is out target number) * (something that doesn't matter) So the two numbers must contain the prime factors of 594. The only answer choice that can be composed by the primes of 594 is C (11*2*3) So this can be solved without thinking too much about the mechanics of the problem given. Re: A motorcycle importer is planning on increasing the price of [#permalink] 15 Jun 2016, 04:21 Similar topics Replies Last post Similar Topics: 7 The original price of a suit is$200. The price increased 30%, and af 10 06 Mar 2015, 07:36
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