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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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95% (hard)

Question Stats:

57% (04:31) correct
43% (05:08) wrong based on 183 sessions

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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 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?

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.

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.

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? _________________

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

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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

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

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23 Mar 2014, 05:55

Expert's post

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

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?

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

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20 Nov 2014, 21:56

Expert's post

Hi Bunuel/Karishma - Is there any faster and better way to solve this problem other than plugging in the answer choices in the equations? _________________

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

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20 Nov 2014, 23:29

Expert's post

1

This post was BOOKMARKED

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.

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

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

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21 Nov 2014, 10:36

Expert's post

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.

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 ?

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

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07 Dec 2014, 22:52

Expert's post

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.

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!

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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