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

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Bunuel
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A manufacturer of a certain product can expect that between 0.3 percen [#permalink] 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] 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] New post   25 Mar 2021, 15:26
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Re: A manufacturer of a certain product can expect that between 0.3 percen [#permalink] 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] 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] New post   11 Dec 2015, 05:49
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(.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] 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] 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] 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] 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] New post   16 Feb 2018, 10:31
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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


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] New post   19 Feb 2018, 09:14
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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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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] New post   04 Nov 2019, 13:54
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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All the upper limits are different (and easier to calculate).

20,000 Units. 1% is 200. 0.5% is 100 units.

Refund is full amount so 100*2500. That's 4 zeros.

Option E.
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Re: A manufacturer of a certain product can expect that between 0.3 percen [#permalink] New post   24 Dec 2020, 08:07
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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


I don't how the experts will suggest but I want to calculate the either lower limit or the upper limit to save time. Because there is no second match for either limit. For example,

The Lower defective level is \(20,000*\frac{3}{100*10}=60\); the amount \( 60*2,500=150,000\) only one match with the answer choice. (D)

The upper defective level is \(\frac{20,000*5}{100*10}=100\); the amount \(100*2,500=250,000\) only one match with the answer choice (D)

The answer is \(D\)
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Re: A manufacturer of a certain product can expect that between 0.3 percen [#permalink] New post   07 May 2021, 21:38
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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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Re: A manufacturer of a certain product can expect that between 0.3 percen [#permalink] New post   01 Sep 2023, 04:01
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.



Number of units that can be defective is between
\(\frac{0.3}{100}*20000 = 60\) and
\(\frac{0.5}{100}*20000 = 100\)

the retail price is $2,500 per unit

So, expected refunds is between
60*2500 = 150,000 and
100*2500 = 250,000

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