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.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

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:

A store currently charges the same price for each towel that [#permalink]

Show Tags

15 Jun 2006, 16:36

2

This post received KUDOS

5

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

45% (medium)

Question Stats:

71% (02:00) correct
29% (01:56) wrong based on 347 sessions

HideShow timer Statistics

A store currently charges the same price for each towel that it sells. If the current price of each towel were to be increased by $1, 10 fewer of the towels could be bought for $120, excluding sales tax. What is the current price of each towel?

A store currently charges the same price for each towel that it sells. If the current price of each towel were to be increased by $1, 10 fewer of the towels could be bought for $120, excluding sales tax. What is the current price of each towel?

A) 1 B) 2 C) 3 D) 4 E) 12

Let current price be x
towels that can be bought with $120 = 120/x

If price is x+1, towels bought = 120/(x+1) = (120/x) - 10
Solving for x yields x=3

A store currently charges the same price for each towel that it sells. If the current price of each towel were to be increased by $1, 10 fewer of the towels could be bought for $120, excluding tax. What is the current price of each towel?

A) $1 B) $2 C) $3 D) $4 E) $12

Current price of each towel = $x

Number of current towels which can be bought for $120 is equal to (120/x)

amount of towels you could buy with old price is 120/x, and amount with new price is (120/x+1)-10

set these equations equal to each other, and solve for x. youll end up with a quadratic with roots -4 and 3. -4 is inadmissable, so 3 is your answer.

try it out: for 120 dollars, you can get 40 towels at 3 bucks a pop. Now, for a dollar increase, i.e. 4 dollars, you can get only 30 towels. Thats a difference of 10 towels due to a $1 increase in price.

Assuming n-no of towels, x-unit price of towel before increase:

n*x=120 (n-10)*(x+1)=120

You could solve the equations, but I tried different values of n ending with 0 from 120's prime factors - 5*3*2*2*2 so n could be 20, 30, 40 and corresponding x values are 6,4 and 3. And 40 and 3 satyisfy the second condition, so 3 is the answer.

OG 195. A store currently charges the same price for each towel that it sells. If the current price of each towel were to be increased by $1, 10 fewer of the towels could be bought for $120, excluding sales tax. What is the current price of each towel? (A) $ 1 (B) $ 2 (C) $ 3 (D) $ 4 (E) $ 12

Suggest shortest way to solve the problem.

Let the current price be \(p\) and the # of towels sold at this price be \(n\). Then we would have two equations:

\(pn=120\) amd \((p+1)(n-10)=120\) at this point you can solve the system of equations for \(p\) (you'll get quadratic equation to solve) or try to substitute answer choices.

When substituting answer choices it's good to start with the middle value, so in our case C - $3 --> so if \(p=3\) then \(3n=120\) --> \(n=40\) --> \((3+1)(40-10)=4*30=120\), so this answer works.

A store currently charges the smae price for each towel that it sells. if the current price of each towel were to be increased by 1.10 fewer of the towels could be bought for 120, excluding sales tax. what is the current price of each towel?

a)1 b)2 c)3 d)4 e)12

I think there ought to be a comma between 1 and 10 here. If that were the case, we know that increasing price by 1 reduces volume by 10 for a fixed budget of 120. If initial price is x and volume y then we have

xy = 120

(x+1)*(y-10)=120

120 is 3*4*10

So, we can deduce that if x is 3 then y is 40 and when x+1 becomes 4, y-10 becomes 30 and hence x is 3 - Answer C

It’s quickly approaching two years since I last wrote anything on this blog. A lot has happened since then. When I last posted, I had just gotten back from...

Since my last post, I’ve got the interview decisions for the other two business schools I applied to: Denied by Wharton and Invited to Interview with Stanford. It all...

Marketing is one of those functions, that if done successfully, requires a little bit of everything. In other words, it is highly cross-functional and requires a lot of different...