A television manufacturer produces 600 units of a certain model each

Question

A television manufacturer produces 600 units of a certain model each month at a cost to the manufacturer of $90 per unit and all of the produced units are sold each month. What is the minimum selling price per unit that will ensure that the monthly profit (revenue from sales minus the manufacturer's cost to produce) on the sales of these units will be at least $42,000?

A$110
B$120
C$140
D$160
E$180

A. $110
B. $120
C. $140
D. $160
E. $180

RSOHAL · Answer

Total cost =  600 + 90 = 54000 
total revenue per month = cost + profit =  54000+42000 = 96000

Selling price per unit =  \frac{96000}{600}= 160

D is correct answer.

Shiv2016 · Answer

Bunuel  and  abhimahna

I solved it this way. Is it fine?

Total manufacturing cost= 600*90= 54000
Total selling cost= 600x

Profit= 600x- 54000

600x- 54000>= 42000

x>=160

The least value is 160 because of the equal to sign.

abhimahna · Answer

Hi  Shiv2016  ,

Yes, this method is fine. It's actually the same the other person has used in the above post.

You are taking >= while he was taking "=".

You are all good if you are getting the right answer. :)

generis · Answer

TR - TC = total profit 
TR = (sell price per item) * (# of items)
TC = (cost price per item) * (# of items)

We need sell price per item, x

600x - (600)(90) = 42,000  
600x - 54,000 = 42,000
600x = 96,000
x = 160

Answer D

gps5441 · Answer

Total profit=42000=No of units sold=600 and the price be x
600X=42000
x=42000/600=420/6=70.
SP=90+70=160

StockAnalyst · Answer

my approach
since we already know cost per unit that is 90$/unit and we also successfully sells all unit every month and we need total 42000$ profit so simply divide 42000/600=420/6=70
now 90+70=160 will be selling price
Option D

ScottTargetTestPrep · Answer

We can let p = the minimum selling price per unit and create the following equation:

600p - 600(90) ≥ 42,000

600p - 54,000 ≥ 42,000

600p ≥ 96,000

p ≥ 160

Answer: D

asfandabid · Answer

Total Cost price= 90*600
C.P = 54000
Total Selling Price= 600*x

Where x= no. of units

Profit= Selling price - Cost Price
42000= 600x- 54000
600x= 96000
x=160

Ans. D

EMPOWERgmatRichC · Answer

Hi All,

While this question is a bit 'wordy', there's a great built-in logic 'shortcut' that you can use to minimize the amount of work that you need to do to get to the correct answer. To start, we're given a couple of facts to work with: 
1) There are 600 units produced and sold 
2) Each unit COST $90 to make

We're asked for the price at which the TOTAL PROFIT from the sale of these units = $42,000.

Since there are 600 units, then each unit has to bring in $42,000/600 = $70 in profit. The COST of each unit is $90, so to hit that total profit, we just need to increase that $90 by $70 on each unit.

$90 + $70 = $160

Final Answer:  D

GMAT assassins aren't born, they're made, 
Rich

Kinshook · Answer

A television manufacturer produces 600 units of a certain model each month at a cost to the manufacturer of $90 per unit and all of the produced units are sold each month. What is the minimum selling price per unit that will ensure that the monthly profit (revenue from sales minus the manufacturer's cost to produce) on the sales of these units will be at least $42,000?

A$110
B$120
C$140
D$160
E$180

Let the selling price per unit be $x
600 (x - 90) >= 42,000
x -90 >= 70
x>=$160

IMO D

Abhishek009 · Answer

\frac{600*90 + 42000}{600}

Or,  \frac{600(90 + 70)}{600}

Or,  160 , Answer must be (D)

sahuanamika · Answer

Cost price per unit : 90 $
No. of units: 600
Minimum profit per month : 42000 $ (its given that number of units made are sold by the end of the month, so this is the total for 600 units)

Profit made per unit : 42000/600 = 70 $ per unit
So, S.P per unit = C.P+ Profit = 70+90 = 160$

Option D

bumpbot · Answer

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A television manufacturer produces 600 units of a certain model each

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