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

It is currently 20 May 2019, 17:44

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 sells radios for $15.00 each. It costs the company $14.00 pe

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

Hide Tags

 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 55188
A company sells radios for $15.00 each. It costs the company $14.00 pe  [#permalink]

Show Tags

New post 30 Jul 2018, 00:17
10
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

83% (01:28) correct 17% (01:30) wrong based on 365 sessions

HideShow timer Statistics

A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


NEW question from GMAT® Quantitative Review 2019


(PS01949)

_________________
VP
VP
User avatar
P
Joined: 31 Oct 2013
Posts: 1352
Concentration: Accounting, Finance
GPA: 3.68
WE: Analyst (Accounting)
Re: A company sells radios for $15.00 each. It costs the company $14.00 pe  [#permalink]

Show Tags

New post 30 Jul 2018, 01:17
Bunuel wrote:
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


NEW question from GMAT® Quantitative Review 2019


(PS01949)



Selling price per radio = 15

Phase 1:

production cost of 1000 radios = 14*1000 = 14000

Total selling price of 1000 radios = 15*1000 = 15000

Profit = 1000

Phase 2 :

total selling price of 2000 = 15*2000 = 30000

Total production cost of 2000 radios = 13.50*2000 = 27000

Profit = 30000 -27000 = 3000

Difference in profit = 3000 -1000 = 2000

The best answer is D.
Senior Manager
Senior Manager
User avatar
D
Joined: 18 Jun 2018
Posts: 267
Premium Member
Re: A company sells radios for $15.00 each. It costs the company $14.00 pe  [#permalink]

Show Tags

New post 30 Jul 2018, 01:28
Bunuel wrote:
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


NEW question from GMAT® Quantitative Review 2019


(PS01949)


OA:D

1st case: production and sale of 1,000 radios
Selling price/unit = $15.00
Cost price/unit = $14.00
Profit /unit = $1.00
Profit on 1000 units = $1.00*1000 =$1000

2nd case: production and sale of 2,000 radios
Selling price/unit = $15.00
Cost price/unit = $13.50
Profit /unit = $1.50
Profit on 2000 units = $1.50*2000 =$3000

Difference in gross profit = $3000-$1000 =$2000
Target Test Prep Representative
User avatar
D
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 6160
Location: United States (CA)
Re: A company sells radios for $15.00 each. It costs the company $14.00 pe  [#permalink]

Show Tags

New post 10 Aug 2018, 18:56
1
Bunuel wrote:
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


The gross profit for 1,000 radios is:

15 x 1000 - 14 x 1000 = 1000(15 - 14) = $1000

The gross profit for 2,000 radios is:

15 x 2000 - 13.5 x 2000 = 2000(15 - 13.5) = 2000 x 1.5 = $3000.

The difference is $2000.

Answer: D
_________________

Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
TTP - Target Test Prep Logo
122 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

If you find one of my posts helpful, please take a moment to click on the "Kudos" button.

Director
Director
User avatar
P
Joined: 20 Sep 2016
Posts: 637
Location: India
Concentration: Strategy, Operations
GPA: 3.95
WE: Operations (Real Estate)
GMAT ToolKit User CAT Tests
Re: A company sells radios for $15.00 each. It costs the company $14.00 pe  [#permalink]

Show Tags

New post 16 Aug 2018, 23:45
Shorter way:
SP= $15.00 Each

CP 1= 14.00 EACH
CP 2= 13.5 EACH.

now instead of considering 1000 and 2000 just consider 1 and 2 as ratio would be constant.

>> Profit= 15(1) -14(1) = 1

>>Profit = 15(2)- 13.5(2)= 3
( As twice the amount is produced and sold)

Answer >> 3-1= 2

Posted from my mobile device
Intern
Intern
avatar
B
Joined: 01 May 2017
Posts: 36
Re: A company sells radios for $15.00 each. It costs the company $14.00 pe  [#permalink]

Show Tags

New post 05 Jan 2019, 01:08
The gross profit for 1,000 radios is:

15 x 1000 - 14 x 1000 = 1000(15 - 14) = $1000

The gross profit for 2,000 radios is:

15 x 2000 - 13.5 x 2000 = 2000(15 - 13.5) = 2000 x 1.5 = $3000.

The difference is:

3000$ - 1000$ = $2000.

Answer: D
Intern
Intern
avatar
Joined: 30 Apr 2014
Posts: 4
Schools: IIMA , IIMB, IIMC , AGSM '18
A company sells radios for $15.00 each. It costs the company $14.00 pe  [#permalink]

Show Tags

New post 16 Mar 2019, 04:06
Bunuel wrote:
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


NEW question from GMAT® Quantitative Review 2019


(PS01949)


Answer

Scenario 1: ( For 1000 Nos Radio production )

Selling Price for Radio = $ 15
Cost per Radio = $ 14
Profit per Radio = $1------------- A

Scenario 2 ( For 2000 Nos Radio production )

Selling Price for Radio = $ 15
Cost per Radio = $ 13.5
Profit per Radio = $1.5------------- B

Difference in Profit from 2000 nos production to 1000 Nos Production

=($ 1.5 *2000 nos) - ($ 1 *1000 nos)
=$ 3000 - $1000 = $ 2000

Hence Answer D.

Please give +1 Kudos if you like this approach :) :)
GMAT Club Bot
A company sells radios for $15.00 each. It costs the company $14.00 pe   [#permalink] 16 Mar 2019, 04:06
Display posts from previous: Sort by

A company sells radios for $15.00 each. It costs the company $14.00 pe

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


Copyright

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®.