The inventor of a new toy offers the Kiddy Toy Company : Quant Question Archive [LOCKED]
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 24 Jan 2017, 03:59

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The inventor of a new toy offers the Kiddy Toy Company

Author Message
Manager
Joined: 04 Sep 2005
Posts: 142
Location: Fringes of the Boreal, Canada
Followers: 1

Kudos [?]: 17 [0], given: 0

The inventor of a new toy offers the Kiddy Toy Company [#permalink]

### Show Tags

23 Nov 2005, 15:05
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

The inventor of a new toy offers the Kiddy Toy Company exclusive rights to manufacture and sell the toy for a lump sum payment of $25,000. After estimating the future sales possibilities beyond one year are nonexistent, the Company management is reviewing an alternative proposal to give a lump sum payment of$2000 plus royalty of \$0.50 for each unit sold. How many units must be sold the first year to make this alternative as economically attractive to the investor as the original request?

A) 25,000
B) 50,000
C) 36,000
D) 46,000
E) 20,000
_________________

"To hell with circumstances; I create opportunities." - Bruce Lee

Director
Joined: 14 Sep 2005
Posts: 993
Location: South Korea
Followers: 2

Kudos [?]: 156 [0], given: 0

### Show Tags

23 Nov 2005, 19:17
25000 = 2000 + 0.5X
X = 46000

(D)
_________________

Auge um Auge, Zahn um Zahn !

Senior Manager
Joined: 11 May 2004
Posts: 458
Location: New York
Followers: 1

Kudos [?]: 47 [0], given: 0

### Show Tags

23 Nov 2005, 21:31
Should be 46,000

x=number of toys to be sold

25,000 = 2000 +.5x
25,000-2,000 = .5x
23,000/.5 = x
46,000 =x
Senior Manager
Joined: 14 Apr 2005
Posts: 417
Location: India, Chennai
Followers: 2

Kudos [?]: 16 [0], given: 0

### Show Tags

24 Nov 2005, 04:13
To break-even we need 25000 = 2000 +.5(x)
Solving for x we get 460000
Display posts from previous: Sort by