|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
04 Jun 2020, 07:24
Kudos
Bookmarks
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
63% (02:51) correct
37%
(02:47)
wrong
based on 139
sessions
History
Date
Time
Result
Not Attempted Yet
A toy manufacturer runs his plant for 30 days in a month such that his daily output is constant during the month. He undertakes the maintenance of his plant every 6 months for 5 days in a month, during which period no toys are produced. As he has to undertake the maintenance of the plant this month, he increases his constant daily output of toys by 10 percent compared to the last month’s constant daily output. If the manufacturer wants to keep his monthly revenue unchanged as compared to last month, by approximately what percentage should be increase the price per toy?
A. 7%
B. 8%
C. 9%
D. 10%
E. 11%
A. 7%
B. 8%
C. 9%
D. 10%
E. 11%
yashikaaggarwal
Senior Moderator - Masters Forum
Joined: 19 Jan 2020
Last visit: 29 Mar 2026
Posts: 3,088
Given Kudos: 1,510
Location: India
Schools: Cranfield (A) Warwick MiM "23 (M)
GPA: 4
WE:Analyst (Internet and New Media)
04 Jun 2020, 07:36
Kudos
Bookmarks
Let the manufacturer monthly output be 30
The month in which maintenance has to be took place. The daily output increased by 10%
Daily output is 1
Manufacturer take 5 days for maintainance that means for the certain month, the manufacturer would only be able to produce 25 output if he hadn't increased output by 10%
Due to 10% increase in daily output. Output is equal to
25*110/100 = 27.5
Therefore the manufacturer is able to produce 27.5 output.
Let the cost per output be 1.
For previous month manufacturer was been able to get 30$
But for this month he will only be able to get 27.5
For same level of revenue.
The cost at which one output is sold in that particular month is 30/27.5 = 1.09$
The increase in price
= (new price-old price/old price)*100
=> (1.09-1/1)*100
=> 0.09*100
=> 9%
Answer should be C
Posted from my mobile device
The month in which maintenance has to be took place. The daily output increased by 10%
Daily output is 1
Manufacturer take 5 days for maintainance that means for the certain month, the manufacturer would only be able to produce 25 output if he hadn't increased output by 10%
Due to 10% increase in daily output. Output is equal to
25*110/100 = 27.5
Therefore the manufacturer is able to produce 27.5 output.
Let the cost per output be 1.
For previous month manufacturer was been able to get 30$
But for this month he will only be able to get 27.5
For same level of revenue.
The cost at which one output is sold in that particular month is 30/27.5 = 1.09$
The increase in price
= (new price-old price/old price)*100
=> (1.09-1/1)*100
=> 0.09*100
=> 9%
Answer should be C
Posted from my mobile device
04 Jun 2020, 09:10
Kudos
Bookmarks
IMO C
Let the output for 1 day = x
price of 1 item = y
Total price for the products produced in 1 day = xy
Total price for the products produced in 30 days = 30xy
Fro 25 days of production:
output for 1 day = 1.1x
Let the new price be p
Total price for the products produced in 25 days = 25*(1.1)xp
Since monthly revenue has to be same::
30xy = 25*(1.1)xp
p = \(\frac{12}{11} \)*y ~ 1.09y
==> 9% increase in price is needed.
Let the output for 1 day = x
price of 1 item = y
Total price for the products produced in 1 day = xy
Total price for the products produced in 30 days = 30xy
Fro 25 days of production:
output for 1 day = 1.1x
Let the new price be p
Total price for the products produced in 25 days = 25*(1.1)xp
Since monthly revenue has to be same::
30xy = 25*(1.1)xp
p = \(\frac{12}{11} \)*y ~ 1.09y
==> 9% increase in price is needed.
