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A manufacturer of a certain product can expect that between 0.3 percen

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New post 14 Oct 2015, 21:33
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A manufacturer of a certain product can expect that between 0.3 percent and 0.5 percent of the units manufactured will be defective. If the retail price is $2,500 per unit and the manufacturer offers a full refund for defective units, how much money can the manufacturer expect to need to cover the refunds on 20,000 units?

(A) Between $15,000 and $25,000
(B) Between $30,000 and $50,000
(C) Between $60,000 and $100,000
(D) Between $150,000 and $250,000
(E) Between $300,000 and $500,000


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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 14 Oct 2015, 21:56
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Number of defective units is between = .3 % of 20000 and .5% of 20000
= 60 and 100
Retail Price per unit = 2500 $
Expected price of refund is between = 2500 x 60 and 2500 x 100
=1,50,000 and 2,50,000 dollars
Answer D
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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 15 Oct 2015, 11:09
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Bunuel wrote:
A manufacturer of a certain product can expect that between 0.3 percent and 0.5 percent of the units manufactured will be defective. If the retail price is $2,500 per unit and the manufacturer offers a full refund for defective units, how much money can the manufacturer expect to need to cover the refunds on 20,000 units?

(A) Between $15,000 and $25,000
(B) Between $30,000 and $50,000
(C) Between $60,000 and $100,000
(D) Between $150,000 and $250,000
(E) Between $300,000 and $500,000


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Units are expected to be defective: 0.3/100*20,000 => 0.5/100*20,000: 60 ~ 100

=> Between $150,000 and $250,000

Ans: D
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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 15 Oct 2015, 14:33
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Tried to use some quick thinking on this one.
1% of 20000 = 200 units
.5% = 100 units
.01% = 20 units

.01 x 3 = 20 x 3
.03% = 60

100 * 2500 = 250000
60*2500= 150000

Ans D
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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 11 Dec 2015, 05:49
(.5/100)*20,000*2,500=250,000. Only D has this as the higher limit. No need to calculate for .3%
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A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 17 Jun 2016, 15:21
let x be the percent of the defective units
0.3<x<0.5
we can assume that x can be 0.4
since its 0.4 percent this would be \(\frac{0.4}{100}\)
0.4 percent of the 20,000 units given is the same as:

20,000*\(\frac{0.4}{100}\)= 80 units

so, about 80 units of the 20000 given will be defective, hence the manufacturer can expect to need to recover around:

80*2500= $200,000
since 200,000 fits in the $150,000 and $250,000 range.

Answer is D
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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 19 Jun 2016, 02:46
0.3 percent is 3 per thousand. 3 per thousand of 20 thousand is 3 x 20 = 60.

Lower bound for total price of defective units: 60 x 2.5 thousand = 150 thousand.

Thus D is the correct answer choice.
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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 27 Jan 2017, 04:58
If you look at the answer format, you can easily notice that all maximum values are different (also calculating 0.5% will cancel out easier than 0.3%)

Thus maximum refund to expect = 0.5% x 2,500 x 20,000 = 250,000
Answer D

Hint: 0.5% x 20,000 x 2500 = 0.5 x 20000 x 2500/100 = 10,000 x 25 = 250,000
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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 09 Feb 2017, 20:09
How much money need to cover for refund ?
Number of units = 20,000 units
cost = 2500$ / unit
0.3% of units = 3/1000 x 20,000 = 60 units defective
0.5% of units = 5/1000 x 20,000 = 100 units defective
Between 60x2500$ = 150,000$
100x2500$ = 250,000$
D
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Re: A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 16 Feb 2018, 10:31
Bunuel wrote:
A manufacturer of a certain product can expect that between 0.3 percent and 0.5 percent of the units manufactured will be defective. If the retail price is $2,500 per unit and the manufacturer offers a full refund for defective units, how much money can the manufacturer expect to need to cover the refunds on 20,000 units?

(A) Between $15,000 and $25,000
(B) Between $30,000 and $50,000
(C) Between $60,000 and $100,000
(D) Between $150,000 and $250,000
(E) Between $300,000 and $500,000


If at least 0.3 percent of the 20,000 units are defective, then at least 0.3/100 x 20,000 = 60 units will be defective costing 60 x 2,500 = 150,000 dollars.

Since we see that 150,000 is the “low” number and only answer choice D has 150,000 as the low number, answer choice D must be correct.

Answer: D
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A manufacturer of a certain product can expect that between 0.3 percen  [#permalink]

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New post 19 Feb 2018, 09:14
Bunuel wrote:
A manufacturer of a certain product can expect that between 0.3 percent and 0.5 percent of the units manufactured will be defective. If the retail price is $2,500 per unit and the manufacturer offers a full refund for defective units, how much money can the manufacturer expect to need to cover the refunds on 20,000 units?

(A) Between $15,000 and $25,000
(B) Between $30,000 and $50,000
(C) Between $60,000 and $100,000
(D) Between $150,000 and $250,000
(E) Between $300,000 and $500,000


Kudos for a correct solution.


ok here is a quick method :)

remove all zeros 2,500 = 25
and 20,000 = 2

total number of units 25*2 = 50

now add remaining number of zeros ( add six zeros) :) 50, 000, 000

5*3 = 15 and 5*5 = 25

so answer is D :)
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Re: A manufacturer of a certain product can expect that between 0.3 percen   [#permalink] 19 Feb 2019, 09:18
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