It is currently 23 Nov 2017, 10:08

### 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

Math Expert
Joined: 02 Sep 2009
Posts: 42338

Kudos [?]: 133122 [0], given: 12415

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

### Show Tags

05 Jan 2014, 13:13
Expert's post
3
This post was
BOOKMARKED
00:00

Difficulty:

15% (low)

Question Stats:

74% (01:36) correct 26% (02:04) wrong based on 462 sessions

### HideShow timer Statistics

The Official Guide For GMAT® Quantitative Review, 2ND Edition

A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \$130,000 and variable costs averaging \$8 per item. If the manufacturer's selling price per item is \$15, how many items must 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

Problem Solving
Question: 25
Category: Algebra Applied problems
Page: 65
Difficulty: 600

GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition - Quantitative Questions Project

Each week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution.

We'll be glad if you participate in development of this project:
2. Please vote for the best solutions by pressing Kudos button;
3. Please vote for the questions themselves by pressing Kudos button;
4. Please share your views on difficulty level of the questions, so that we have most precise evaluation.

Thank you!
[Reveal] Spoiler: OA

_________________

Kudos [?]: 133122 [0], given: 12415

Math Expert
Joined: 02 Sep 2009
Posts: 42338

Kudos [?]: 133122 [0], given: 12415

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

### Show Tags

05 Jan 2014, 13:13
Expert's post
3
This post was
BOOKMARKED
SOLUTION

A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \$130,000 and variable costs averaging \$8 per item. If the manufacturer's selling price per item is \$15, how many items must 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

Profit = Revenue - Cost.

Let x is the number of items the manufacturer must produce and sell.

Profit = 150,000;
Revenue = 15x;
Cost = 130,000 + 8x.

150,000 = 15x - (130,000 + 8x);
280,000 = 7x;
x = 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
_________________

Kudos [?]: 133122 [0], given: 12415

Director
Joined: 25 Apr 2012
Posts: 722

Kudos [?]: 866 [0], given: 724

Location: India
GPA: 3.21
Re: A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

05 Jan 2014, 21:01
A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \$130,000 and variable costs averaging \$8 per item. If the manufacturer's selling price per item is \$15, how many items must 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

Sol: Let x be the number of items that must be sold to make a annual profit of \$150000.
Now Profit= Selling Price - Cost Price

Thus we have 150000= 15x - (130000+8x)-----> 20000= 7x ------> We don't even have to caculate this value because Barring Option A all the other options are automatically ruled out.

Ans is A

_________________

“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”

Last edited by WoundedTiger on 06 Jan 2014, 02:56, edited 2 times in total.

Kudos [?]: 866 [0], given: 724

Manager
Joined: 20 Dec 2013
Posts: 130

Kudos [?]: 111 [3], given: 1

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

### Show Tags

06 Jan 2014, 02:41
3
KUDOS
A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \$130,000 and variable costs averaging \$8 per item. If the manufacturer's selling price per item is \$15, how many items must 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

Let us say x items were produced
Total cost = 130,000 + 8x
Total Revenue = 15x

For 150,000 Profit Revenue = Cost + 150,000

Profit Revenue = 130,000 + 8x + 150,000 = 15x

7x = 280,000
x = 40,000

_________________

76000 Subscribers, 7 million minutes of learning delivered and 5.6 million video views

Perfect Scores
http://perfectscores.org

Kudos [?]: 111 [3], given: 1

Director
Joined: 25 Apr 2012
Posts: 722

Kudos [?]: 866 [0], given: 724

Location: India
GPA: 3.21
Re: A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

06 Jan 2014, 02:57
WoundedTiger wrote:
A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \$130,000 and variable costs averaging \$8 per item. If the manufacturer's selling price per item is \$15, how many items must 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

Sol: Let x be the number of items that must be sold to make a annual profit of \$150000.
Now Profit= Selling Price - Cost Price

Thus we have 150000= 15x - (130000+8x)-----> 20000= 7x ------> We don't even have to caculate this value because Barring Option A all the other options are automatically ruled out.

Ans is A

God Help me......I can do better....7x=280000 and x=40000.

Ans E
_________________

“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”

Kudos [?]: 866 [0], given: 724

Current Student
Joined: 03 Feb 2013
Posts: 941

Kudos [?]: 1079 [3], given: 548

Location: India
Concentration: Operations, Strategy
GMAT 1: 760 Q49 V44
GPA: 3.88
WE: Engineering (Computer Software)
Re: A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

06 Jan 2014, 08:58
3
KUDOS
Bunuel wrote:
The Official Guide For GMAT® Quantitative Review, 2ND Edition

A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \$130,000 and variable costs averaging \$8 per item. If the manufacturer's selling price per item is \$15, how many items must 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

Difficulty level : Sub 600.

The difference of Selling and variable cost is : \$7.
Now the seller has to make a profit of \$150k on top of fixed cost of \$130k , so N * 7 = \$280k
Now pick up the easiest option to verify, Option E) is the easiest to test and satisfies the equation beautifully. Option E)
_________________

Thanks,
Kinjal

My Application Experience : http://gmatclub.com/forum/hardwork-never-gets-unrewarded-for-ever-189267-40.html#p1516961

Kudos [?]: 1079 [3], given: 548

Math Expert
Joined: 02 Sep 2009
Posts: 42338

Kudos [?]: 133122 [0], given: 12415

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

### Show Tags

29 Apr 2014, 01:38
SOLUTION

A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \$130,000 and variable costs averaging \$8 per item. If the manufacturer's selling price per item is \$15, how many items must 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

Profit = Revenue - Cost.

Let x is the number of items the manufacturer must produce and sell.

Profit = 150,000;
Revenue = 15x;
Cost = 130,000 + 8x.

150,000 = 15x - (130,000 + 8x);
280,000 = 7x;
x = 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
_________________

Kudos [?]: 133122 [0], given: 12415

Director
Joined: 10 Mar 2013
Posts: 591

Kudos [?]: 480 [0], given: 200

Location: Germany
Concentration: Finance, Entrepreneurship
GMAT 1: 580 Q46 V24
GPA: 3.88
WE: Information Technology (Consulting)
Re: A certain manufacturer produces items for which the producti [#permalink]

### Show Tags

11 Jun 2014, 13:56
Profit for 1 Item --> 15-8 = 7
(130,000+150,000)/7 = 40,000
_________________

When you’re up, your friends know who you are. When you’re down, you know who your friends are.

800Score ONLY QUANT CAT1 51, CAT2 50, CAT3 50
GMAT PREP 670
MGMAT CAT 630
KAPLAN CAT 660

Kudos [?]: 480 [0], given: 200

Non-Human User
Joined: 09 Sep 2013
Posts: 15511

Kudos [?]: 283 [0], given: 0

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

### Show Tags

12 Jul 2015, 01:50
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.
_________________

Kudos [?]: 283 [0], given: 0

Non-Human User
Joined: 09 Sep 2013
Posts: 15511

Kudos [?]: 283 [0], given: 0

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

### Show Tags

23 Jul 2016, 04:30
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.
_________________

Kudos [?]: 283 [0], given: 0

Re: A certain manufacturer produces items for which the producti   [#permalink] 23 Jul 2016, 04:30
Display posts from previous: Sort by