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A company produces school bags. The cost for producing the first 1,000

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A company produces school bags. The cost for producing the first 1,000  [#permalink]

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New post 05 Nov 2019, 01:39
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A company produces school bags. The cost for producing the first 1,000 bags of a particular design, owing to initial expenses, turns out to be $30 per bag. Thereafter, the cost reduces to $10 per bag. If the company produced 5,000 bags of a certain design and sold them all at an average price of $20 per bag, which of the following will represent the best approximation for the percentage profit earned by the company on the expenses incurred in producing these bags?

A. 10%
B. 20%
C. 30%
D. 40%
E. 50%


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Re: A company produces school bags. The cost for producing the first 1,000  [#permalink]

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New post 05 Nov 2019, 05:17
CP= (30*1000)+10(4000) = 70000
SP= 20*5000= 10000
Profit % = 3/7*100~43%
D is closest and answer.
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Re: A company produces school bags. The cost for producing the first 1,000  [#permalink]

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New post 05 Nov 2019, 06:05
Avg cost price of 5000 bags =\(\frac{1*30+4*10}{5}\)= 14

Avg SP of 5000 bags= 20

best approximation for the percentage profit earned by the company on the expenses incurred in producing these bags= \(\frac{20-14}{14} *100\)=43%

Bunuel wrote:
A company produces school bags. The cost for producing the first 1,000 bags of a particular design, owing to initial expenses, turns out to be $30 per bag. Thereafter, the cost reduces to $10 per bag. If the company produced 5,000 bags of a certain design and sold them all at an average price of $20 per bag, which of the following will represent the best approximation for the percentage profit earned by the company on the expenses incurred in producing these bags?

A. 10%
B. 20%
C. 30%
D. 40%
E. 50%


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Re: A company produces school bags. The cost for producing the first 1,000  [#permalink]

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New post 05 Nov 2019, 06:58
CP = 3*10^4+4*10^4 ; 7*10^4
SP = 10^5
% profit = 10^5-7*10^4/ 7*10^4 ; 3/7 ; ~40%
IMO D


Bunuel wrote:
A company produces school bags. The cost for producing the first 1,000 bags of a particular design, owing to initial expenses, turns out to be $30 per bag. Thereafter, the cost reduces to $10 per bag. If the company produced 5,000 bags of a certain design and sold them all at an average price of $20 per bag, which of the following will represent the best approximation for the percentage profit earned by the company on the expenses incurred in producing these bags?

A. 10%
B. 20%
C. 30%
D. 40%
E. 50%


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Re: A company produces school bags. The cost for producing the first 1,000  [#permalink]

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New post 05 Nov 2019, 07:23
Bunuel wrote:
A company produces school bags. The cost for producing the first 1,000 bags of a particular design, owing to initial expenses, turns out to be $30 per bag. Thereafter, the cost reduces to $10 per bag. If the company produced 5,000 bags of a certain design and sold them all at an average price of $20 per bag, which of the following will represent the best approximation for the percentage profit earned by the company on the expenses incurred in producing these bags?

A. 10%
B. 20%
C. 30%
D. 40%
E. 50%


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CP = 1000*30 + 4000*10 => 30000 + 40000 = 70000

SP = 5000*20 = 100000

So, Profit is 30000 ; Profit % is 3/7*100 ~ 40%, Answer must be (D)
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Re: A company produces school bags. The cost for producing the first 1,000  [#permalink]

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New post 11 Nov 2019, 17:28
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Bunuel wrote:
A company produces school bags. The cost for producing the first 1,000 bags of a particular design, owing to initial expenses, turns out to be $30 per bag. Thereafter, the cost reduces to $10 per bag. If the company produced 5,000 bags of a certain design and sold them all at an average price of $20 per bag, which of the following will represent the best approximation for the percentage profit earned by the company on the expenses incurred in producing these bags?

A. 10%
B. 20%
C. 30%
D. 40%
E. 50%


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Since profit = revenue - cost, the profit is:

5000 x 20 - (1000 x 30 + 4000 x 10)

100,000 - (30,000 + 40,000)

100,000 - 70,000

$30,000

Notice that the cost (or expenses) is $70,000; so the profit is 30,000/70,000 = 3/7 ≈ 40% of the expenses.

Answer: D
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Re: A company produces school bags. The cost for producing the first 1,000   [#permalink] 11 Nov 2019, 17:28
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