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Company C sells a line of 25 products with an average retail [#permalink]
21 Nov 2005, 19:18

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Question Stats:

77% (03:06) correct
23% (02:09) wrong based on 216 sessions

Company C sells a line of 25 products with an average retail price of $1,200. If none of these products sells for less than $420, and exactly 10 of the products sell for less than $1,000, what is the greatest possible selling price of the most expensive product?

A. $2,600 B. $3,900 C. $7,800 D. $11,800 E. $18,200

Min price of 10 products under $1000 = 420*10 = 4200
Since other products are $1000 or greater, let us say the next 14 products cost $1000 each = $14000

Total for 24 prod = 18200
Total for 25 prod = 25*1200 = 30000
25th product (most expensive) = 30000 - 18200 = 11800 (D)

Re: PS- selling price [#permalink]
21 Nov 2005, 21:39

cool_jonny009 wrote:

Company C sells a line of 25 products with an average retail price of $1200. if none of these product sells for less than $420 and exactaly 10 of the products sell for less than $1000, What is the greatest possible selling price of the most expensive product?

a)2600 b)3900 c)7800 d)11,800 e)18,200

My answer is D

In order to find the greatest selling price, we have to minimize the 24 products.

Total price = $25*$1200 = $30,000

Min 10 of the products = 10*$420 = $4,200
Min the remaining 14 products = 14*$1000 = $14,000

Re: PS- selling price [#permalink]
21 Nov 2005, 23:03

D - 11800.
Total price = 25*1200 = 30000
Min. price = 10 * 420 = 4200
=> Remaining 15 should sum to (30000 - 4200) = 25800
Let us assume that 14 of these cost 1000 each and they total to 14000
HEnce 25800 - 14000 = 11800 should be the greatest possible SP.

Re: Company C sells a line of 25 products with an average retail price of [#permalink]
15 Oct 2010, 23:36

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prashantbacchewar wrote:

Comapany C sells a line of 25 products with an average retail price of $1200. If none of these products sell for less than $420, and exactly 10 of the products sell for less than $1000, what is greatest possible selling price of the most expensive product.

a) 2600 b) 3900 c) 7800 d) 11800 e) 18200

This question is from Kaplan preimere but somehow I am not able to understand the explaination. Need help

Thanks

Right, so we know that the average is $1200. We also know the minimum possible value is $420 and that exactly 10 products sell for less than $1000. If we have to maximize the price of the most expensive object, keeping the average fixed, we need to make all the other 24 objects as cheap as possible.

Now we know there are 10 objects < $1000 and that the minimum price is $420. So in the optimal case, all ten will cost $420. For the other 14 objects, the minimum price we can allocate to them is $1000, as making it lower will violate the ten object constraint.

What we also know if total price = 1200*25 Therefore, 420*10 + 1000*14 + x = 1200*25, x=$11800

Answer is (d)

Let me know if anything isn't clear _________________

Re: Company C sells a line of 25 products with an average retail [#permalink]
17 Dec 2012, 00:40

Sorry guys. Still feel like this question is missing something. I understand why 10 products are priced at $420. Why aren't the remaining 14 products also priced at $420 to maximize the final products price? No where in the questions does it say that the other products must be priced at $1000.

Thanks in advance.

________________________

Previous posted answer... Min price of 10 products under $1000 = 420*10 = 4200 Since other products are $1000 or greater, let us say the next 14 products cost $1000 each = $14000

Total for 24 prod = 18200 Total for 25 prod = 25*1200 = 30000 25th product (most expensive) = 30000 - 18200 = 11800 (D)

Re: Company C sells a line of 25 products with an average retail [#permalink]
17 Dec 2012, 04:27

1

This post received KUDOS

Expert's post

SFsubway wrote:

Sorry guys. Still feel like this question is missing something. I understand why 10 products are priced at $420. Why aren't the remaining 14 products also priced at $420 to maximize the final products price? No where in the questions does it say that the other products must be priced at $1000.

Thanks in advance.

Because if the remaining 14 products are also priced at $420, then we'd have that 10+14=24 items are less than $1,000, and we are told that EXACTLY 10 of the products are priced less than $1,000,

Company C sells a line of 25 products with an average retail price of $1,200. If none of these products sells for less than $420, and exactly 10 of the products sell for less than $1,000, what is the greatest possible selling price of the most expensive product?

A. $2,600 B. $3,900 C. $7,800 D. $11,800 E. $18,200

General rule for such kind of problems: to maximize one quantity, minimize the others; to minimize one quantity, maximize the others.

So, to maximize the price of the most expensive product we should minimize the prices of the remaining 24 products.

The average price of 25 products is $1,200 means that the total price of 25 products is 25*1,200=$30,000.

Next, since exactly 10 of the products sell for less than $1,000, then let's make these 10 items to be at $420 each (min possible).

Now, the remaining 14 items cannot be priced less than $1,000, thus the minimum possible price of each of these 14 items is $1,000.

Thus the minimum possible value of 24 products is 10*420+14*1,000=$18,200.

Therefore, the greatest possible selling price of the most expensive product is $30,000-$18,200=$11,800.

Re: Company C sells a line of 25 products with an average retail [#permalink]
25 Jun 2014, 08:29

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Re: Company C sells a line of 25 products with an average retail price of [#permalink]
28 Apr 2015, 02:18

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Re: Company C sells a line of 25 products with an average retail [#permalink]
28 Apr 2015, 08:55

Total value of the products sold by the company = 25*1200 = 30000

For 10 of the products sell that sell for less than $1,000, assume that each of them sold at the minimum price of 420.

So, 15 products are left and we have to maximize the selling price of 1 of those 15 -> We have to minimize the selling price of the rest of the 14 products

Minimum price of these 14 can be 1000

So, 10*420 + 14*1000 + x = 30000 -> x = 11,800

gmatclubot

Re: Company C sells a line of 25 products with an average retail
[#permalink]
28 Apr 2015, 08:55

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