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Question from Challenge 7 - #33

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CEO
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Question from Challenge 7 - #33 [#permalink]  22 Feb 2006, 07:44

If a company sells s tons of product A annually and charges b dollars per ton, what is profit if it costs g dollars to manufacture a kilogram of product A and p dollars to ship it to the customer?

(A) b-g*1000+p*1000
(B) b*s-(g+p)/1000
(C) [b-(g+p)]*s
(D) [g/1000-(b+p)]*s
(E) [b/1000-(g+p)]*s
Director
Joined: 17 Dec 2005
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(b/1000)*s - s( g+p)

s[(b/1000) - (g+p)]

E

"what is profit if it costs g dollars to manufacture a kilogram of product A and p dollars to ship it to the customer?"

I would suggest to write the sentence like this to make it more clear that one kg costs g+p:

"what is profit if each kg costs g dollars to manufacture and p dollars to ship to the customer"
Senior Manager
Joined: 11 Jan 2006
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Location: Chennai,India
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I will pick C ,

the cost to produce of a ton of product A = g
therefore to produce S ton = Sg
cost to ship = p
THUS total cost price = Sg+p

Selling price = Sb

thus profit = selling price - cost price / cost price
= (Sb - Sg+p)/(Sg+p)

OA pls...
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Manager
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I agree with allabout. If we take the question as it is, there is no correct answer choice. If the question was what is the profit for 1 kg, then the answer would be E.
Rarulz, the question says that the manufacturing cost of 1 kg is g (you mistook 1kg for 1 ton).
Senior Manager
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chuckle wrote:
I agree with allabout. If we take the question as it is, there is no correct answer choice. If the question was what is the profit for 1 kg, then the answer would be E.
Rarulz, the question says that the manufacturing cost of 1 kg is g (you mistook 1kg for 1 ton).

Bingo... I understood now.. thnks chuckle..
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Senior Manager
Joined: 05 Jan 2006
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I am totally off by this question...

Consider sell price s tons at \$ b per tone => s*b \$

Consider purchase price s*1000 kg and (g+p)\$ per kg => (g+p) * s *1000 \$

Profit

s*b - (g+p) * s * 1000 \$

(b-(g+p) * 1000)*s

closest to this equation is E which is dividing this equation by 1000\$ but off course you need to tan consider that your profit will be in 1000 of \$ not plain \$...
Manager
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Re: Question from Challenge 7 - #33 [#permalink]  06 Mar 2006, 12:21
Praetorian wrote:

If a company sells s tons of product A annually and charges b dollars per ton, what is profit if it costs g dollars to manufacture a kilogram of product A and p dollars to ship it to the customer?

(A) b-g*1000+p*1000
(B) b*s-(g+p)/1000
(C) [b-(g+p)]*s
(D) [g/1000-(b+p)]*s
(E) [b/1000-(g+p)]*s

I think there is a problem with this question, because you don't know if p is per kilogram, per ton, or per shipment

total profit = s*(b-1000g) - p

if p is per kilogram then the closest would be E but
the problem with E is that s is not multiplied by 1000

am i wrong?
Director
Joined: 23 Jun 2005
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I think the question has been thoroughly analyzed.
But the question is about total profit for that year, not per kg or per ton. So, the answer, as already arrived at, is E.
My way of reaching E:
Total sales = \$bs
Total manufacturing cost = \$1000g/tonne
= \$gs1000/s tonnes
Total shipping cost = \$1000p/tonne
= \$ps1000/s tonnes
Total cost = \$1000s(g+p)
Profit = bs-[1000s(g+p)]
=s[b/1000-(g+p)] (E)
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