It is currently 22 Oct 2017, 23:32

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

ACME’s manufacturing costs for sets of horseshoes

Author Message
TAGS:

Hide Tags

Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 4426

Kudos [?]: 8472 [2], given: 102

ACME’s manufacturing costs for sets of horseshoes [#permalink]

Show Tags

14 Feb 2013, 12:19
2
KUDOS
Expert's post
2
This post was
BOOKMARKED
00:00

Difficulty:

5% (low)

Question Stats:

85% (01:55) correct 15% (01:58) wrong based on 109 sessions

HideShow timer Statistics

ACME’s manufacturing costs for sets of horseshoes include a $11,450 initial outlay, and$19.75 per set. They can sell the sets $52.50. If profit is revenue from sales minus manufacturing costs, and the company produces & sells 987 sets of horseshoes, what was their profit? (A)$20,874.25
(B) $30,943.25 (C)$41,308.50
(D) $51,817.50 (E)$53,624.25

Unless you're Johannes Kepler or Will Hunting, you probably would not be able to do that exact calculation in your head, and of course you get no calculator on the GMAT. With estimation, though, this is a remarkably simple question. For more on the power of estimation on the GMAT, as well as an elegant solution to this question, see:
http://magoosh.com/gmat/2012/the-power- ... mat-quant/

Experts, what wisdom and specific tips would you like to share about estimation on the GMAT Quantitative section?

Mike
[Reveal] Spoiler: OA

_________________

Mike McGarry
Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)

Kudos [?]: 8472 [2], given: 102

 Magoosh Discount Codes Veritas Prep GMAT Discount Codes Jamboree Discount Codes
MBA Section Director
Status: Back to work...
Affiliations: GMAT Club
Joined: 22 Feb 2012
Posts: 4713

Kudos [?]: 3715 [0], given: 2420

Location: India
City: Pune
GMAT 1: 680 Q49 V34
GPA: 3.4
Re: ACME’s manufacturing costs for sets of horseshoes [#permalink]

Show Tags

14 Feb 2013, 13:12
its A

since options are not so close we can solve this by uniting calculation and guessing

total sales will be bit lower than 52500

from that initial outlay will get deducted 11500 so we left with 41000

variable cost say 20 X 1000 = 20000 will be deducted so finally we left with 21000

since we have considered the price greater than it actually is, the correct answer will certainly not cross the threshold of 21000.

@Mike Sir

Regards,

Abhijit
_________________

Kudos [?]: 3715 [0], given: 2420

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 16542

Kudos [?]: 274 [0], given: 0

Re: ACME’s manufacturing costs for sets of horseshoes [#permalink]

Show Tags

12 Aug 2014, 19:35
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.
_________________

Kudos [?]: 274 [0], given: 0

SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1853

Kudos [?]: 2632 [0], given: 193

Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: ACME’s manufacturing costs for sets of horseshoes [#permalink]

Show Tags

13 Aug 2014, 22:45
mikemcgarry wrote:
ACME’s manufacturing costs for sets of horseshoes include a $11,450 initial outlay, and$19.75 per set. They can sell the sets $52.50. If profit is revenue from sales minus manufacturing costs, and the company produces & sells 987 sets of horseshoes, what was their profit? (A)$20,874.25
(B) $30,943.25 (C)$41,308.50
(D) $51,817.50 (E)$53,624.25

Unless you're Johannes Kepler or Will Hunting, you probably would not be able to do that exact calculation in your head, and of course you get no calculator on the GMAT. With estimation, though, this is a remarkably simple question. For more on the power of estimation on the GMAT, as well as an elegant solution to this question, see:
http://magoosh.com/gmat/2012/the-power- ... mat-quant/

Experts, what wisdom and specific tips would you like to share about estimation on the GMAT Quantitative section?

Mike

The OA in this problem have a great variation; so we can use approximation

$$19.75 \approx {20}$$

$$52.50 \approx {50}$$

$$987 \approx {1000}$$

Total Cost Price$$= 11450 + 20*1000 \approx{31000}$$

Total Sell Price $$= 1000*50 \approx {50000}$$

$$Profit \approx {20000}$$

_________________

Kindly press "+1 Kudos" to appreciate

Kudos [?]: 2632 [0], given: 193

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 16542

Kudos [?]: 274 [0], given: 0

Re: ACME’s manufacturing costs for sets of horseshoes [#permalink]

Show Tags

28 May 2016, 11:53
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.
_________________

Kudos [?]: 274 [0], given: 0

Re: ACME’s manufacturing costs for sets of horseshoes   [#permalink] 28 May 2016, 11:53
Display posts from previous: Sort by