A television manufacturer produces 600 units of a certain model each

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. :)

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

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

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

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

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

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:

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

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

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

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

Or, \(160\), Answer must be (D)

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

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