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The total cost of producing item Y is equal to the sum of

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The total cost of producing item Y is equal to the sum of [#permalink] New post 08 Dec 2007, 11:12
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B
C
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  35% (medium)

Question Stats:

64% (03:44) correct 36% (01:27) wrong based on 28 sessions
The total cost of producing item Y is equal to the sum of item Y's fixed cost and variable cost. If the variable cost of producing Y decreased by 10% in January, by what percent did the total cost of producing item Y change in January?

(1) The fixed cost of producing item Y increased by 12% in January.

(2) Before the changes in January, the fixed cost of producing item Y was 5 times the variable cost of producing item Y.

OPEN DISCUSSION OF THIS QUESTION IS HERE: the-total-cost-of-producing-item-x-is-equal-to-the-sum-of-97488.html
[Reveal] Spoiler: OA
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 [#permalink] New post 08 Dec 2007, 11:19
I get C.

1. We know how much each cost changed, but not how they relate to each other
2. We know how they relate, but know nothing about how fixed cost changed.

Together:

v + f = total cost
5v = f
so set the total cost to $6
1 + 5 = 6

.9v + 1.12f = new total
.9(1) + (1.12)5 = new total
.90 + 5.60 = 6.50

6.50/6 = ~1.08

so about an 8% increase in total cost
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 [#permalink] New post 08 Dec 2007, 11:43
I put B. Shouldn't B be enough to solve the question assuming that Fixed costs remain the same?
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 [#permalink] New post 08 Dec 2007, 11:47
alexperi wrote:
I put B. Shouldn't B be enough to solve the question assuming that Fixed costs remain the same?


yeah, I think you must be right and A is just there to trip you up. If you just take the information from the question and then look at B you can figure it out.

.9(1) + 5 = $5.90

1 - (5.90/6.00) = percent decrease in cost
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 [#permalink] New post 08 Dec 2007, 11:51
The official answer is actually C but i thought it was a trick.Maybe the question is not correct.
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 [#permalink] New post 08 Dec 2007, 11:54
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alexperi wrote:
The official answer is actually C but i thought it was a trick.Maybe the question is not correct.


We need some clarification on how the GMAT works in situations like this.

Given the information from the question only we can assume fixed costs remain the same and can solve the problem with the information from B.

If they tell us that fixed costs don't remain the same in one of the statements, do we have to count that as information for the problem?

I'd love to hear how you handle stuff like this. The set up here is terrible IMO.
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Re: The total cost of producing item Y is equal to the sum of [#permalink] New post 22 Feb 2014, 23:15
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Re: The total cost of producing item Y is equal to the sum of [#permalink] New post 23 Feb 2014, 01:36
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Re: The total cost of producing item Y is equal to the sum of   [#permalink] 23 Feb 2014, 01:36
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