GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 18 Aug 2018, 11:36

Close

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
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.

Close

Request Expert Reply

Confirm Cancel

A company produces 450 units of a particular computer component every

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
avatar
Joined: 22 Sep 2010
Posts: 9
A company produces 450 units of a particular computer component every  [#permalink]

Show Tags

New post 16 Nov 2010, 16:50
1
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

73% (02:29) correct 27% (03:18) wrong based on 111 sessions

HideShow timer Statistics

A company produces 450 units of a particular computer component every month, at a production cost to the company of $110 per component, and sells all of the components by the end of each month. What is the minimum selling price per component that will guarantee that the yearly profit (revenue from sales minus production costs) will be at least $626,400 ?


A. 226
B. 230
C. 240
D. 260
E. 280

_________________

tejh

Manager
Manager
avatar
Joined: 10 Sep 2010
Posts: 121
Re: A company produces 450 units of a particular computer component every  [#permalink]

Show Tags

New post 16 Nov 2010, 16:56
1
I pick "A"


You need to set up an equation.

450*12(x-110)=626400

where x is a selling cost of one item
x-110, is a profit from one item

450 - number of items produced and sold per month
12 - is a number of month in a year

Simplifying the equation will lead to x-110=116, then x = 226
Manager
Manager
User avatar
Joined: 01 Nov 2010
Posts: 140
Location: Zürich, Switzerland
Re: A company produces 450 units of a particular computer component every  [#permalink]

Show Tags

New post 18 Nov 2010, 16:56
simple but time consuming...

incurring profit 626400 is equal to incur profit 52200 per month.

total production cost = 450*110= 49500
Total selling price = 49500+52200=101700

Thus price per equipment= 101700/450 = 226

Answer:- A
Veritas Prep GMAT Instructor
User avatar
P
Joined: 16 Oct 2010
Posts: 8190
Location: Pune, India
Re: A company produces 450 units of a particular computer component every  [#permalink]

Show Tags

New post 22 Nov 2010, 19:29
2
Sarang wrote:
simple but time consuming...

incurring profit 626400 is equal to incur profit 52200 per month.

total production cost = 450*110= 49500
Total selling price = 49500+52200=101700

Thus price per equipment= 101700/450 = 226

Answer:- A


Hey Sarang,
That's the trick of GMAT. For many questions, there is a long calculation approach and a short cut.
Selling price per item = 110 + \(\frac{626400}{(12*450)}\)
Considering that all options are integers, you know you will end up canceling everything out to obtain 110 + 116 = 226
_________________

Karishma
Veritas Prep GMAT Instructor

Save up to $1,000 on GMAT prep through 8/20! Learn more here >

GMAT self-study has never been more personalized or more fun. Try ORION Free!

Director
Director
User avatar
G
Status: Tutor - BrushMyQuant
Joined: 05 Apr 2011
Posts: 612
Location: India
Concentration: Finance, Marketing
Schools: XLRI (A)
GMAT 1: 700 Q51 V31
GPA: 3
WE: Information Technology (Computer Software)
Re: A company produces 450 units of a particular computer component every  [#permalink]

Show Tags

New post 10 Jul 2015, 06:51
1
Please un-tag mixture problems and tag percent/interest
tejhpamarthi wrote:
A company produces 450 units of a particular computer component every month, at a production cost to the company of $110 per component, and sells all of the components by the end of each month. What is the minimum selling price per component that will guarantee that the yearly profit (revenue from sales minus production costs) will be at least $626,400 ?

a)226 b)230 c)240 d)260 e)280

_________________

Ankit

Check my Tutoring Site -> Brush My Quant

GMAT Quant Tutor
How to start GMAT preparations?
How to Improve Quant Score?
Gmatclub Topic Tags
Check out my GMAT debrief

How to Solve :
Statistics || Reflection of a line || Remainder Problems || Inequalities

Target Test Prep Representative
User avatar
G
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2727
Re: A company produces 450 units of a particular computer component every  [#permalink]

Show Tags

New post 21 Mar 2018, 16:20
tejhpamarthi wrote:
A company produces 450 units of a particular computer component every month, at a production cost to the company of $110 per component, and sells all of the components by the end of each month. What is the minimum selling price per component that will guarantee that the yearly profit (revenue from sales minus production costs) will be at least $626,400 ?


A. 226
B. 230
C. 240
D. 260
E. 280


Since $626,400 is the minimum annual profit, thus $626,400/12 = $52,200 will be the minimum monthly profit. We can let n = the minimum selling price and create the inequality:

450n - 110(450) ≥ 52,200

450n - 49,500 ≥ 52,200

450n ≥ 101,700

n ≥ 226

Answer: A
_________________

Jeffery Miller
Head of GMAT Instruction

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Re: A company produces 450 units of a particular computer component every &nbs [#permalink] 21 Mar 2018, 16:20
Display posts from previous: Sort by

A company produces 450 units of a particular computer component every

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.