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A manufacturer of a certain product can expect that between 0.3 percen
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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 Kudos for a correct solution.
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Re: A manufacturer of a certain product can expect that between 0.3 percen
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14 Oct 2015, 21:56
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
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15 Oct 2015, 11:09
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. 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
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15 Oct 2015, 14:33
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
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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
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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
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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
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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
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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
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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
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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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