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A fixed cost of $1000 is incurred in producing a batch of 200 machine tools. Additionally,$20 goes into the finishing and packaging of each machine tool. If a consignment of 50 batches was sold for $1000000, what is the percentage profit earned by the company on this consignment? A. 30% B. 300% C. 3000% D. 60% E. 600% Source: Experts Global _________________ You've got what it takes, but it will take everything you've got Intern  B Joined: 24 Jan 2018 Posts: 14 Re: A fixed cost of$1000 is incurred in producing a batch of 200 machine  [#permalink]

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I found it easiest to figure out the total cost of producing a single batch (1000+4000), then figure out the revenue for each batch (20000), so profit is 15000 which is 3 times 5000 which works out to 300%
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generis wrote:
hawesg wrote:
I found it easiest to figure out the total cost of producing a single batch (1000+4000), then figure out the revenue for each batch (20000), so profit is 15000 which is 3 times 5000 which works out to 300%

hawesg , Creative solution. +1
And welcome to GMAT club! (I'm late by a few weeks. )

To be fair I started writing it out the long way before I realized it wasn't required.
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Re: A fixed cost of $1000 is incurred in producing a batch of 200 machine [#permalink] ### Show Tags 1 sandysilva wrote: A fixed cost of$1000 is incurred in producing a batch of 200 machine tools. Additionally, 20$goes into finishing and packaging of each machine tool. If a consignment of 50 batches sold for$1,000,000. What is the percentage of profit earned by the company on this consignment?

a) 30%
b) 300%
c) 3000%
d) 60%
e) 600%

Hi,

The question is already posted in the below link. Kindly follow the rules of posting and search before you post. Thanks

https://gmatclub.com/forum/a-fixed-cost ... fl=similar
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A fixed cost of $1000 is incurred in producing a batch of 200 machine [#permalink] ### Show Tags pushpitkc wrote: A fixed cost of$1000 is incurred in producing a batch of 200 machine tools. Additionally, $20 goes into the finishing and packaging of each machine tool. If a consignment of 50 batches was sold for$1000000, what is the percentage profit earned by the company on this consignment?

A. 30%
B. 300%
C. 3000%
D. 60%
E. 600%

Source: Experts Global

Percentage profit: $$\frac{(TR-TC)}{TC}*100$$

Total Cost (TC)
50($1000) + ($20)(50*200) = $250,000 Percentage profit: $$\frac{1,000,000-250,000}{250,000}*100$$= $$(\frac{750,000}{250,000}*100)= 3 * 100= 300$$ % Answer B Similar formula, per batch cost first Percentage profit = $$\frac{(TR-TC)}{TC}*100$$ <-> $$\frac{GrossProfit}{TC}*100$$ 1) Cost price of 1 batch (= 200 tools)?$1,000 fixed + $20/tool (* 200 tools)$1,000 + ($20)(200)$1,000 + $4,000 =$5,000 cost price per batch

2) Total cost (TC) of 50 batches?
(50 * $5,000) =$250,000

3) TR, given = $1,000,000 4) Gross profit = (TR - TC) ($1,000,000 - $250,000) =$750,000

5) Percentage profit =$$\frac{GrossProfit}{TC}*100=$$

$$(\frac{750,000}{250,000}*100)= 3 * 100= 300$$
%

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A fixed cost of $1000 is incurred in producing a batch of 200 machine [#permalink] ### Show Tags A fixed cost of$1000 is incurred in producing a batch of 200 machine tools. Additionally, 20$goes into finishing and packaging of each machine tool. If a consignment of 50 batches sold for$1,000,000. What is the percentage of profit earned by the company on this consignment?

a) 30%
b) 300%
c) 3000%
d) 60%
e) 600%
_________________
Regards
SandySilva

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Please appreciate the efforts by pressing +1 KUDOS (: A fixed cost of $1000 is incurred in producing a batch of 200 machine [#permalink] 03 Apr 2018, 05:12 Display posts from previous: Sort by # A fixed cost of$1000 is incurred in producing a batch of 200 machine  