Last visit was: 21 May 2024, 14:01 It is currently 21 May 2024, 14:01
Toolkit
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

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.

# A television manufacturer produces 600 units of a certain model each

SORT BY:
Tags:
Show Tags
Hide Tags
Joined: 27 Sep 2015
Posts: 49
Own Kudos [?]: 549 [16]
Given Kudos: 26
GMAT 1: 410 Q33 V13
WE:Management Consulting (Computer Software)
Joined: 27 Sep 2015
Posts: 49
Own Kudos [?]: 549 [2]
Given Kudos: 26
GMAT 1: 410 Q33 V13
WE:Management Consulting (Computer Software)
Director
Joined: 02 Sep 2016
Posts: 527
Own Kudos [?]: 195 [1]
Given Kudos: 275
Board of Directors
Joined: 18 Jul 2015
Status:Emory Goizueta Alum
Posts: 3600
Own Kudos [?]: 5435 [1]
Given Kudos: 346
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
1
Kudos
Shiv2016 wrote:
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.

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. :)
Senior SC Moderator
Joined: 22 May 2016
Posts: 5330
Own Kudos [?]: 35571 [1]
Given Kudos: 9464
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
1
Bookmarks
RSOHAL wrote:
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$180 TR - TC = total profit TR = (sell price per item) * (# of items) TC = (cost price per item) * (# of items) We need sell price per item, x 600x - (600)(90) = 42,000 600x - 54,000 = 42,000 600x = 96,000 x = 160 Answer D Manager Joined: 04 May 2014 Posts: 111 Own Kudos [?]: 72 [0] Given Kudos: 126 Location: India WE:Sales (Mutual Funds and Brokerage) Re: A television manufacturer produces 600 units of a certain model each [#permalink] Total profit=42000=No of units sold=600 and the price be x 600X=42000 x=42000/600=420/6=70. SP=90+70=160 Intern Joined: 17 Jul 2017 Posts: 8 Own Kudos [?]: 4 [2] Given Kudos: 28 Re: A television manufacturer produces 600 units of a certain model each [#permalink] 1 Kudos 1 Bookmarks my approach since we already know cost per unit that is 90$/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 Target Test Prep Representative Joined: 14 Oct 2015 Status:Founder & CEO Affiliations: Target Test Prep Posts: 18886 Own Kudos [?]: 22287 [0] Given Kudos: 285 Location: United States (CA) Re: A television manufacturer produces 600 units of a certain model each [#permalink] Expert Reply RSOHAL wrote: 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

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

Intern
Joined: 11 Dec 2016
Posts: 41
Own Kudos [?]: 53 [0]
Given Kudos: 104
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
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
GMAT Club Legend
Joined: 19 Dec 2014
Status:GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Posts: 21843
Own Kudos [?]: 11690 [4]
Given Kudos: 450
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
3
Kudos
1
Bookmarks
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

GMAT assassins aren't born, they're made,
Rich
GMAT Club Legend
Joined: 03 Jun 2019
Posts: 5351
Own Kudos [?]: 4013 [0]
Given Kudos: 160
Location: India
GMAT 1: 690 Q50 V34
WE:Engineering (Transportation)
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
RSOHAL wrote:
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 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 $42,000? Let the selling price per unit be$x
600 (x - 90) >= 42,000
x -90 >= 70
x>=$160 IMO D Board of Directors Joined: 11 Jun 2011 Status:QA & VA Forum Moderator Posts: 6069 Own Kudos [?]: 4705 [0] Given Kudos: 463 Location: India GPA: 3.5 WE:Business Development (Commercial Banking) Re: A television manufacturer produces 600 units of a certain model each [#permalink] RSOHAL wrote: 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

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

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

Or, $$160$$, Answer must be (D)
Intern
Joined: 22 May 2021
Posts: 49
Own Kudos [?]: 18 [0]
Given Kudos: 108
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
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
Non-Human User
Joined: 09 Sep 2013
Posts: 33141
Own Kudos [?]: 829 [0]
Given Kudos: 0
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: A television manufacturer produces 600 units of a certain model each [#permalink]
Moderator:
Math Expert
93373 posts