Find all School-related info fast with the new School-Specific MBA Forum

It is currently 31 Aug 2014, 23:43

Close

GMAT Club Daily Prep

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.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

ACME’s manufacturing costs for sets of horseshoes

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Expert Post
2 KUDOS received
Magoosh GMAT Instructor
User avatar
Joined: 28 Dec 2011
Posts: 2053
Followers: 495

Kudos [?]: 2036 [2] , given: 30

ACME’s manufacturing costs for sets of horseshoes [#permalink] New post 14 Feb 2013, 11:19
2
This post received
KUDOS
Expert's post
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

80% (02:49) correct 20% (01:59) wrong based on 61 sessions
ACME’s manufacturing costs for sets of horseshoes include a $11,450 initial outlay, and $19.75 per set. They can sell the sets $52.50. If profit is revenue from sales minus manufacturing costs, and the company produces & sells 987 sets of horseshoes, what was their profit?
(A) $20,874.25
(B) $30,943.25
(C) $41,308.50
(D) $51,817.50
(E) $53,624.25


Unless you're Johannes Kepler or Will Hunting, you probably would not be able to do that exact calculation in your head, and of course you get no calculator on the GMAT. With estimation, though, this is a remarkably simple question. For more on the power of estimation on the GMAT, as well as an elegant solution to this question, see:
http://magoosh.com/gmat/2012/the-power- ... mat-quant/

Experts, what wisdom and specific tips would you like to share about estimation on the GMAT Quantitative section?

Mike :-)
[Reveal] Spoiler: OA

_________________

Mike McGarry
Magoosh Test Prep

Image

Image

Kaplan Promo CodeKnewton GMAT Discount CodesManhattan GMAT Discount Codes
Expert Post
Moderator
Moderator
User avatar
Affiliations: GMAT Club
Joined: 21 Feb 2012
Posts: 1165
Location: India
City: Pune
GPA: 3.4
WE: Business Development (Manufacturing)
Followers: 138

Kudos [?]: 871 [0], given: 843

Re: ACME’s manufacturing costs for sets of horseshoes [#permalink] New post 14 Feb 2013, 12:12
Expert's post
its A

since options are not so close we can solve this by uniting calculation and guessing

total sales will be bit lower than 52500

from that initial outlay will get deducted 11500 so we left with 41000

variable cost say 20 X 1000 = 20000 will be deducted so finally we left with 21000

since we have considered the price greater than it actually is, the correct answer will certainly not cross the threshold of 21000.

@Mike Sir
Thanks for sharing the link.

Regards,

Abhijit
_________________

Be the coolest guy in the MBA Forum - Be a threadmaster!

Have a blog? Feature it on GMAT Club!

All MBA Resources All 'Sticky' Topics at one place

Please share your profiles for this application season: 2015 Profiles w/ Admit/Dings Results!

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Next Generation GMATClub CATS with Brilliant Analytics.


SVP
SVP
User avatar
Joined: 09 Sep 2013
Posts: 2231
Followers: 186

Kudos [?]: 37 [0], given: 0

Premium Member
Re: ACME’s manufacturing costs for sets of horseshoes [#permalink] New post 12 Aug 2014, 18:35
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.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

Director
Director
User avatar
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 832
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Followers: 5

Kudos [?]: 203 [0], given: 165

Re: ACME’s manufacturing costs for sets of horseshoes [#permalink] New post 13 Aug 2014, 21:45
mikemcgarry wrote:
ACME’s manufacturing costs for sets of horseshoes include a $11,450 initial outlay, and $19.75 per set. They can sell the sets $52.50. If profit is revenue from sales minus manufacturing costs, and the company produces & sells 987 sets of horseshoes, what was their profit?
(A) $20,874.25
(B) $30,943.25
(C) $41,308.50
(D) $51,817.50
(E) $53,624.25


Unless you're Johannes Kepler or Will Hunting, you probably would not be able to do that exact calculation in your head, and of course you get no calculator on the GMAT. With estimation, though, this is a remarkably simple question. For more on the power of estimation on the GMAT, as well as an elegant solution to this question, see:
http://magoosh.com/gmat/2012/the-power- ... mat-quant/

Experts, what wisdom and specific tips would you like to share about estimation on the GMAT Quantitative section?

Mike :-)


The OA in this problem have a great variation; so we can use approximation

19.75 \approx {20}

52.50 \approx {50}

987 \approx {1000}

Total Cost Price= 11450 + 20*1000 \approx{31000}

Total Sell Price = 1000*50 \approx {50000}

Profit \approx {20000}

Answer = A
_________________

Kindly press "+1 Kudos" to appreciate :)

Re: ACME’s manufacturing costs for sets of horseshoes   [#permalink] 13 Aug 2014, 21:45
    Similar topics Author Replies Last post
Similar
Topics:
3 The cost of manufacturing automobiles is considerably greate guerrero25 5 23 Oct 2013, 21:56
Experts publish their posts in the topic ACME’s manufacturing costs for sets of horseshoes include mikemcgarry 5 25 Sep 2013, 09:55
5 Experts publish their posts in the topic The ACME company manufactured x brooms per month from Januar dcastan2 11 18 Dec 2012, 00:33
A company manufactures products A and B. The cost of aikido_fudoshin 4 23 Nov 2005, 15:22
Companies considering new cost-cutting manufacturing nocilis 5 16 Feb 2005, 22:03
Display posts from previous: Sort by

ACME’s manufacturing costs for sets of horseshoes

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.