Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 24 May 2017, 08:14

### 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

# A certain manufacturer produces items for which the producti

Author Message
TAGS:

### Hide Tags

Intern
Joined: 26 Feb 2011
Posts: 37
Followers: 1

Kudos [?]: 109 [0], given: 1

A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

01 Mar 2011, 09:16
3
This post was
BOOKMARKED
00:00

Difficulty:

5% (low)

Question Stats:

84% (02:11) correct 16% (02:02) wrong based on 124 sessions

### HideShow timer Statistics

A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling $130,000 and variables costs averaging$8 per item. If the manufacturer’s selling price per item is $15, how many items the manufacturer produce and sell to earn an annual profit of$150,000?

(A) 2,858
(B) 18,667
(C) 21,429
(D) 35,000
(E) 40,000
[Reveal] Spoiler: OA

Last edited by Bunuel on 12 Sep 2013, 02:43, edited 1 time in total.
Renamed the topic, edited the question and added the OA.
Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2013
Followers: 163

Kudos [?]: 1822 [0], given: 376

### Show Tags

01 Mar 2011, 09:26
Let the items manufactured or sold be "x"

130000+8x = 15x-150000
7x = 280000
x = 40000

Ans: "E"
_________________
Intern
Joined: 05 Jul 2013
Posts: 5
Followers: 0

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

### Show Tags

12 Sep 2013, 02:30
E is the Right as per view you. Nice calculation provided by fluke to understand the quest.

http://www.somatextiles.com/home.php/te ... g-industry

Last edited by jitenrajput9 on 12 Sep 2013, 02:48, edited 1 time in total.
Math Expert
Joined: 02 Sep 2009
Posts: 38856
Followers: 7723

Kudos [?]: 105991 [0], given: 11602

Re: A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

12 Sep 2013, 02:46
Expert's post
1
This post was
BOOKMARKED
A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling $130,000 and variables costs averaging$8 per item. If the manufacturer’s selling price per item is $15, how many items the manufacturer produce and sell to earn an annual profit of$150,000?

(A) 2,858
(B) 18,667
(C) 21,429
(D) 35,000
(E) 40,000

Similar questions to practice:
marginal-cost-is-the-cost-of-increasing-the-quantity-pr-109332.html
the-expenses-of-a-hostel-are-partly-fixed-and-partly-137287.html
_________________
Intern
Joined: 07 Sep 2013
Posts: 25
Concentration: Entrepreneurship
GPA: 3.52
Followers: 0

Kudos [?]: 10 [0], given: 0

Re: A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

12 Sep 2013, 22:09
If the sell price is $15 and the cost is$8 per item, then there's a profit of $7/item To make up the$130,000 fixed cost and make $150,000 in profit, we need to have$280,000 in revenue.

7X = 280,000

X = 40,000 items

Choice E

t1000
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 15420
Followers: 649

Kudos [?]: 206 [0], given: 0

Re: A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

30 Jul 2016, 13:48
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: A certain manufacturer produces items for which the producti   [#permalink] 30 Jul 2016, 13:48
Similar topics Replies Last post
Similar
Topics:
In the manufacture of a certain product, 5 percent of the units produc 4 20 Nov 2015, 12:41
7 A computer manufacturer produces a certain electronic component at a c 6 01 Mar 2017, 18:25
10 The manufacturer’s suggested retail price (MSRP) of a certain item is 8 07 Aug 2016, 07:00
11 A certain manufacturer produces items for which the producti 9 23 Jul 2016, 04:30
33 A manufacturer produces a certain men's athletic shoe in 20 21 Mar 2017, 15:15
Display posts from previous: Sort by