Last year, a certain company began manufacturing product X a

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Last year, a certain company began manufacturing product X a [#permalink]

14 Dec 2012, 08:13

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Re: Last year, a certain company began manufacturing product X a [#permalink]

14 Dec 2012, 08:20

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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.
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Re: Last year, a certain company began manufacturing product X a [#permalink] 14 Dec 2012, 08:20

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Last year, a certain company began manufacturing product X a

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Last year, a certain company began manufacturing product X a

Last year, a certain company began manufacturing product X a

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