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

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Ryerson (Ted Rogers) Thread Master
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A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 21 Dec 2015, 20:53
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D
E

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Question Stats:

90% (01:20) correct 10% (01:04) wrong based on 118 sessions

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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
[Reveal] Spoiler: OA

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Ryerson (Ted Rogers) Thread Master
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Re: A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 21 Dec 2015, 21:00
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.
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Re: A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 20 Aug 2017, 01:11
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.
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Re: A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 20 Aug 2017, 01:15
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. :)
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A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 20 Aug 2017, 07:05
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

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Re: A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 21 Aug 2017, 20:16
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

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Re: A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 23 Aug 2017, 23:59
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

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Re: A television manufacturer produces 600 units of a certain model each m [#permalink]

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New post 29 Aug 2017, 17:19
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

Answer: D
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Re: A television manufacturer produces 600 units of a certain model each m   [#permalink] 29 Aug 2017, 17:19
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