Last visit was: 19 May 2026, 22:31 It is currently 19 May 2026, 22:31
Home
Messages
Tests
Schools
Events
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 May 2026
Posts: 110,713
Own Kudos:
815,815
 [5]
Given Kudos: 106,324
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 110,713
Kudos: 815,815
 [5]
A manufacturer produces items for which the production costs consists 08 Jan 2018, 23:42
Kudos
Add Kudos
5
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

35% (medium)

Question Stats:

72% (01:54) correct 28% (01:56) wrong based on 219 sessions

History

Date
Time
Result
Not Attempted Yet
A manufacturer produces items for which the production costs consists of annual fixed costs totaling $9,500 and variable costs averaging $10 per item. If the total cost to produce 50 items increases by 10 percent while the annual fixed cost stays the same, what is the new variable cost per item?

A. $10
B. $11
C. $20
D. $30
E. $50
ShowHide Answer
Official Answer
D
User avatar
pushpitkc
User avatar
Joined: 26 Feb 2016
Last visit: 19 Feb 2025
Posts: 2,800
Own Kudos:
6,253
 [4]
Given Kudos: 47
Location: India
GPA: 3.12
Posts: 2,800
Kudos: 6,253
 [4]
A manufacturer produces items for which the production costs consists 09 Jan 2018, 10:39
4
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
A manufacturer produces items for which the production costs consists of annual fixed costs totaling $9,500 and variable costs averaging $10 per item. If the total cost to produce 50 items increases by 10 percent while the annual fixed cost stays the same, what is the new variable cost per item?

A. $10
B. $11
C. $20
D. $30
E. $50
Show more


Fixed costs: 9500$
Variable costs : 10$ per item

If total cost for 50 items increases by 10%,
the cost will be \(1.1(9500 + 10*50) = 1.1(10000) = 11000\)

New variable cost per item will be \(\frac{11000 - 9500}{50} = \frac{1500}{50}\) = $30(Option D)
User avatar
ashisplb
User avatar
Joined: 26 Feb 2017
Last visit: 26 Aug 2018
Posts: 19
Own Kudos:
28
Given Kudos: 192
Posts: 19
Kudos: 28
A manufacturer produces items for which the production costs consists 09 Jan 2018, 10:40
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
A manufacturer produces items for which the production costs consists of annual fixed costs totaling $9,500 and variable costs averaging $10 per item. If the total cost to produce 50 items increases by 10 percent while the annual fixed cost stays the same, what is the new variable cost per item?

A. $10
B. $11
C. $20
D. $30
E. $50
Show more

9500+10*50=10000
10000+10%of 10000=10000+1000=11000

9500+50x=11000
X=30

Posted from my mobile device

Posted from my mobile device
User avatar
generis
User avatar
Senior SC Moderator
Joined: 22 May 2016
Last visit: 18 Jun 2022
Posts: 5,258
Own Kudos:
37,787
 [1]
Given Kudos: 9,464
Expert
Expert reply
Posts: 5,258
Kudos: 37,787
 [1]
A manufacturer produces items for which the production costs consists 25 Jan 2018, 13:37
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Bunuel
A manufacturer produces items for which the production costs consists of annual fixed costs totaling $9,500 and variable costs averaging $10 per item. If the total cost to produce 50 items increases by 10 percent while the annual fixed cost stays the same, what is the new variable cost per item?

A. $10
B. $11
C. $20
D. $30
E. $50
Show more
Variable cost = VC
Fixed Cost + (VC per item)*(# of items) = Total Cost

Total cost increases by 10 percent.

The trap answer is B. Answer B gives a VC per item calculated as if the original total did not include fixed cost of $9,500.

Easiest way, IMO, is to focus on total cost for two scenarios, original and increased (new).

1) Original total cost to produce 50 items:

Fixed Cost + (VC per item)(# of items) = Total Cost
$9,500 + ($10)(50) = Original Total Cost
($9,500 + $500) = $10,000 = Original Total Cost

2) Total cost increases by 10 percent
($10,000*1.1) = $11,000= New Total Cost

3) New VC per item
Same Fixed Cost + (VC\(_{new}\))(# of items)= New Total Cost

$9,500 + (VC per item)*(50 items) = $11,000

(VC per item)*(50 items) = ($11,000-$9,500)

(VC per item)*(50 items) = $1,500

VC per item = \(\frac{$1,500}{50items}= $30\)

Answer D
User avatar
rahul16singh28
User avatar
Joined: 31 Jul 2017
Last visit: 09 Jun 2020
Posts: 428
Own Kudos:
504
Given Kudos: 752
Location: Malaysia
Schools: INSEAD Jan '19
GPA: 3.95
WE:Consulting (Energy)
Schools: INSEAD Jan '19
Posts: 428
Kudos: 504
A manufacturer produces items for which the production costs consists 26 Jan 2018, 22:22
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
A manufacturer produces items for which the production costs consists of annual fixed costs totaling $9,500 and variable costs averaging $10 per item. If the total cost to produce 50 items increases by 10 percent while the annual fixed cost stays the same, what is the new variable cost per item?

A. $10
B. $11
C. $20
D. $30
E. $50
Show more

Let total cost be a and the new variable cost per item be b.

\(a = 9500 + 50(10) ----- 1\)
\(\frac{11a}{10} = 9500 + 50(b) --- 2\)

Divide Eqn 1 by 2, we get

\(b = 30\)
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 39,111
Own Kudos:
1,125
Posts: 39,111
Kudos: 1,125
A manufacturer produces items for which the production costs consists 13 Jan 2026, 16:55
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Automated notice from GMAT Club BumpBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.
Moderators:
Bunuel
Math Expert
110713 posts
Krunaal
Tuck School Moderator
852 posts