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A manufacturer makes and sells 2 products, P and Q. The revenue from t

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A manufacturer makes and sells 2 products, P and Q. The revenue from t  [#permalink]

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New post 17 Jun 2017, 08:11
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A manufacturer makes and sells 2 products, P and Q. The revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00. Last year the manufacturer sold twice as many units of Q as P. What was the manufacturer’s average (arithmetic mean) revenue per unit sold of these 2 products last year?

A. $28.50
B. $27.00
C. $19.00
D. $18.50
E. $18.00

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Re: A manufacturer makes and sells 2 products, P and Q. The revenue from t  [#permalink]

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New post 17 Jun 2017, 08:31
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AbdurRakib wrote:
A manufacturer makes and sells 2 products, P and Q. The revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00. Last year the manufacturer sold twice as many units of Q as P. What was the manufacturer’s average (arithmetic mean) revenue per unit sold of these 2 products last year?

A. $28.50
B. $27.00
C. $19.00
D. $18.50
E. $18.00


Let's plug in some NICE VALUES that satisfy the given information...

Last year the manufacturer sold twice as many units of Q as P.
So, let's say the manufacturer sold 1 P and 2 Q's

What was the manufacturer’s average (arithmetic mean) revenue per unit sold of these 2 products last year?
TOTAL revenue = 1($20.00) + 2($17.00)
= $20.00 + $34.00
= $54

There were 3 units sold.
So, average price = $54/3 = $18

Answer:

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Re: A manufacturer makes and sells 2 products, P and Q. The revenue from t  [#permalink]

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New post 17 Jun 2017, 23:48
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AbdurRakib wrote:
A manufacturer makes and sells 2 products, P and Q. The revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00. Last year the manufacturer sold twice as many units of Q as P. What was the manufacturer’s average (arithmetic mean) revenue per unit sold of these 2 products last year?

A. $28.50
B. $27.00
C. $19.00
D. $18.50
E. $18.00


Revenue last year from the sale of P is 20*1 = 20
Revenue last year from the sale of Q is 17*2 = 34

Total Revenue from the sale of P and Q last year is 54

Average Revenue from the sale of P and Q last year is \(\frac{54}{2+1} = 18\)

Hence, answer will be (E) 18
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Re: A manufacturer makes and sells 2 products, P and Q. The revenue from t  [#permalink]

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New post 02 Jul 2017, 21:49
Ratio of quantity of P and Q sold, P:Q = 1:2.

Thus, average revenue per unit = (20*P + 17*Q)/(P+Q) = (20*1 + 17*2)/(2 + 1) = 54/3 = $ 18

Hence E answer
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Re: A manufacturer makes and sells 2 products, P and Q. The revenue from t  [#permalink]

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New post 03 Aug 2018, 15:07
1
AbdurRakib wrote:
A manufacturer makes and sells 2 products, P and Q. The revenue from the sale of each unit of P is $20.00 and the revenue from the sale of each unit of Q is $17.00. Last year the manufacturer sold twice as many units of Q as P. What was the manufacturer’s average (arithmetic mean) revenue per unit sold of these 2 products last year?

A. $28.50
B. $27.00
C. $19.00
D. $18.50
E. $18.00


We can compute a weighted average to solve. Let’s assume that 2 units of Q and 1 unit of P were produced last year. So the total revenue is 2 x 17 + 1 x 20 = $54, and thus the average revenue per unit is thus 54/3 = $18.

Answer: E
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Re: A manufacturer makes and sells 2 products, P and Q. The revenue from t &nbs [#permalink] 03 Aug 2018, 15:07
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