Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized for You
we will pick new questions that match your level based on your Timer History
Track Your Progress
every week, we’ll send you an estimated GMAT score based on your performance
Practice Pays
we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:
Grab 20% off any Target Test Prep GMAT Focus plan during our Flash Sale. Just enter the coupon code FLASH20 at checkout to save up to $320. The offer ends soon.
More and more TTP students are earning 100th percentile scores on the GMAT Focus Edition. The Target Test Prep course represents a quantum leap forward in your preparation, a radical reinterpretation of the way you should study.
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment
With brand new features like:AI-driven Planner tool, 850+ data Insights practice questions and GMAT Focus Edition Adaptive mock tests with ESR+ analysis and personal mentor support, our course is the most comprehensive course for GMAT Focus Edition.
Join us in a comprehensive talk about the F1 Student Visa process with, Travis Feuerbacher, former U.S. Visa Officers and licensed U.S. immigration attorney having expertise working for the U.S. Department of State....
A print shop uses exactly 150 reams of paper each day of the
[#permalink]
14 Jul 2006, 07:00
Show timer
00:00
A
B
C
D
E
Difficulty:
(N/A)
Question Stats:
0%
(00:00)
correct
0%
(00:00)
wrong
based on 0
sessions
HideShow
timer Statistics
A print shop uses exactly 150 reams of paper each day of the calendar year. If it orders the paper at least once every four days, it can store the paper in the existing storage space. Alternatively, the shop can place larger, less frequent orders and rent extra storage space. The table above details the prices for ordering paper from its supplier. Currently, the print shop orders paper every day. Would this print shop save money if it ordered paper once a month instead?
(1) The annual cost of renting extra storage space for a month’s supply of paper is $2,000.
(2) The regular price of 5000 reams of paper is the same as the annual cost of renting extra storage space for a month’s supply of paper.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.
Re: A print shop uses exactly 150 reams of paper each day of the
[#permalink]
14 Jul 2006, 07:44
Let the total price for the paper that the shop uses be x (without discount).
So currently on a daily basis, the shop has to pay
95% of X (price after discount)+ $10*365 (delivery charge)
= 95%of X + 3650 ---------------- 1
Consider (1), the monthly need will be 4500 reams
Using this the total cost would be
= 85%of X + $100*12 + 2000
= 85%of X + 3200 --------------------2
Comparing this with the first eq, the amount for a monthly order will be less than daily order.
So (1) is enough to say if the print shop would save money.
Consider (2), this just says that the monthly cost of order and renting space are the same,
That means if the total cost is 85%of X, monthly cost will be around 85%of X/12 ~= 7%of X
So total cost is
= 85%of X + 1200 + 7%of X
= 92%of X + 1200 ------------------3
3 is state that monthly cost will be greater.
So in all, both (1) and (2) alone are sufficient.
-----------
kevincan wrote:
A print shop uses exactly 150 reams of paper each day of the calendar year. If it orders the paper at least once every four days, it can store the paper in the existing storage space. Alternatively, the shop can place larger, less frequent orders and rent extra storage space. The table above details the prices for ordering paper from its supplier. Currently, the print shop orders paper every day. Would this print shop save money if it ordered paper once a month instead?
(1) The annual cost of renting extra storage space for a month’s supply of paper is $2,000. (2) The regular price of 5000 reams of paper is the same as the annual cost of renting extra storage space for a month’s supply of paper.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
gmatclubot
Re: A print shop uses exactly 150 reams of paper each day of the [#permalink]