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.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 350,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

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:

The total cost for Company X to produce a batch of tools is [#permalink]
25 Feb 2007, 20:50

2

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

5% (low)

Question Stats:

90% (02:22) correct
10% (01:14) wrong based on 338 sessions

The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is

(A) $3.00 (B) $3.75 (C) $4.50 (D) $5.00 (E) $5.50

I keep getting an answer different from OA, and I know I must be missing something simple

Re: The total cost for Company X to produce a batch of tools is [#permalink]
07 Apr 2012, 12:07

3

This post received KUDOS

Expert's post

mymbadreamz wrote:

Can someone explain this please? thanks.

The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is

(A) $3.00 (B) $3.75 (C) $4.50 (D) $5.00 (E) $5.50

The total production cost of 20,000 tools is $10,000 + $3*20,000 = $70,000; The total income from sales of 20,000 tools is $8*20,000 = $160,000;

The gross profit earned is $160,000 - $70,000 = $90,000; The gross profit per tool is $90,000/20,000 = $4.50.

Re: The total cost for Company X [#permalink]
06 May 2012, 23:31

Expert's post

sravanth wrote:

The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is

(A) $3.00 (B) $3.75 (C) $4.50 (D) $5.00 (E) $5.50

Merging similar topics. Please ask if anything remains unclear. _________________

Re: The total cost for Company X to produce a batch of tools is [#permalink]
21 Jun 2012, 00:53

1

This post received KUDOS

TC = 10,000 + 3x

TR = 8x

Profit = 8x - 10000 - 3x = 5x - 10000

when x = 20000, Profit = 90000

Profit per x = 90000/20000 = 4.5

terp26 wrote:

The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is

(A) $3.00 (B) $3.75 (C) $4.50 (D) $5.00 (E) $5.50

I keep getting an answer different from OA, and I know I must be missing something simple

Re: The total cost for Company X to produce a batch of tools is [#permalink]
10 Jan 2014, 00:46

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________

Re: The total cost for Company X to produce a batch of tools is [#permalink]
10 Jan 2014, 00:50

terp26 wrote:

The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is

(A) $3.00 (B) $3.75 (C) $4.50 (D) $5.00 (E) $5.50

I keep getting an answer different from OA, and I know I must be missing something simple

Re: The total cost for Company X to produce a batch of tools is [#permalink]
11 Sep 2014, 05:43

terp26 wrote:

The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is

(A) $3.00 (B) $3.75 (C) $4.50 (D) $5.00 (E) $5.50

I keep getting an answer different from OA, and I know I must be missing something simple

Re: The total cost for Company X to produce a batch of tools is [#permalink]
11 Sep 2014, 07:02

This problem is simple but was hard for me at first. The way I ended up with a solution was seeing that each tool made $5 each and the 10,000 cost of production spread over 20,000 tools meant each tool had an additional cost of .50 making individual profit 4.50 per tool.

gmatclubot

Re: The total cost for Company X to produce a batch of tools is
[#permalink]
11 Sep 2014, 07:02

Great to know you are joining Kellogg. A lot was being talked about your last minute interview on Pagalguy (all good though). It was kinda surprise that you got the...