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:

Last year, a certain company began manufacturing product X a [#permalink]
14 Dec 2012, 07:13

1

This post received KUDOS

6

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

65% (medium)

Question Stats:

42% (03:15) correct
57% (02:11) wrong based on 280 sessions

Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21,000 units of product X last year?

(1) The company's total revenue from the sale of product X last year was greater than $110,000. (2) For each unit of product X sold last year, the company's revenue was $5.

Re: Last year, a certain company began manufacturing product X a [#permalink]
14 Dec 2012, 07:20

8

This post received KUDOS

Expert's post

Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21,000 units of product X last year?

Since the company made a profit, then R-(100,000+0.05R)>0 --> R>2,000,000/19=~105,000.

(1) The company's total revenue from the sale of product X last year was greater than $110,000 --> R>110,000. Its possible that company sold just one unit for say $120,000 or 120,000 units for $1. Not sufficient.

(2) For each unit of product X sold last year, the company's revenue was $5. If total of n units were sold, then the total revenue would be $5n, so R=5n --> 5n>2,000,000/19 --> n>400,00/19>21,000. Sufficient.

Re: Last year, a certain company began manufacturing product X a [#permalink]
16 Jul 2013, 18:35

1

This post received KUDOS

Bunuel wrote:

Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21,000 units of product X last year?

Since the company made a profit, then R-(100,000+0.05R)>0 --> R>2,000,000/19=~105,000.

(1) The company's total revenue from the sale of product X last year was greater than $110,000 --> R>110,000. Its possible that company sold just one unit for say $120,000 or 120,000 units for $1. Not sufficient.

(2) For each unit of product X sold last year, the company's revenue was $5. If total of n units were sold, then the total revenue would be $5n, so R=5n --> 5n>2,000,000/19 --> n>400,00/19>21,000. Sufficient.

Answer: B.

I understand how you came up with R-(100,000+0.05R)>0 but how did you go about creating the equation R>2,000,000/19=~105,000.

Re: Last year, a certain company began manufacturing product X a [#permalink]
16 Jul 2013, 22:04

1

This post received KUDOS

Expert's post

hfbamafan wrote:

Bunuel wrote:

Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21,000 units of product X last year?

Since the company made a profit, then R-(100,000+0.05R)>0 --> R>2,000,000/19=~105,000.

(1) The company's total revenue from the sale of product X last year was greater than $110,000 --> R>110,000. Its possible that company sold just one unit for say $120,000 or 120,000 units for $1. Not sufficient.

(2) For each unit of product X sold last year, the company's revenue was $5. If total of n units were sold, then the total revenue would be $5n, so R=5n --> 5n>2,000,000/19 --> n>400,00/19>21,000. Sufficient.

Answer: B.

I understand how you came up with R-(100,000+0.05R)>0 but how did you go about creating the equation R>2,000,000/19=~105,000.

Re: Last year, a certain company began manufacturing product X a [#permalink]
17 Jul 2013, 12:39

5

This post received KUDOS

Statement 1: Top line revenue numbers only. Doesn't tell us anything about unit costs or information helping us to figure out how many units need to be sold. Not sufficient.

Statement 2: Assume that they sold 21000 units with $5 revenue per unit. This leaves us with $105 000 total revenue. The expenses would then be $100 000 + 5% of $105 000 = $105 250. This would lead to a loss not a profit so the company MUST have sold more than 21000 units to be profitable.

Re: Last year, a certain company began manufacturing product X a [#permalink]
18 May 2014, 09:47

1

This post received KUDOS

Statement 1: The company's total revenue from the sale of product X last year was greater than $110,000. No way to determine the number of units sold. INSUFFICIENT.

Statement 2: For each unit of product X sold last year, the company's revenue was $5. Plug in the THRESHOLD of 21,000 units: Total revenue = 5(21,000) = 105,000. Total expenses = 100,000 + .05(105,000) = 105,250. Not possible, since the company must make a profit. Test a GREATER number of units: 100,000. Total revenue = 5(100,000) = 500,000. Total expenses = 100,000 + .05(500,000) = 125,000. Here, the company makes a profit. Thus, to make a profit, the company must sell MORE than 21,000 units. SUFFICIENT.

The correct answer is B.

gmatclubot

Re: Last year, a certain company began manufacturing product X a
[#permalink]
18 May 2014, 09:47