Forum Home > GMAT > Quantitative > Problem Solving (PS)
Events & Promotions
|
|
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.
Dec 1511:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease.
Dec 1410:00 AM EST
-12:00 PM EST
Think a 100% GMAT Verbal score is out of your reach? Target Test Prep will make you think again! Our course uses techniques such as topical study and spaced repetition to maximize knowledge retention and make studying simple and fun.- Dec 14
11:00 AM IST
-01:00 PM IST
Attend this session to learn how to Deconstruct arguments, Pre-Think Author’s Assumptions, and apply Negation Test. 
Dec 1608:00 AM PST
-11:59 PM PST
GMAT Club 12 Days of Christmas is a 4th Annual GMAT Club Winter Competition based on solving questions. This is the Winter GMAT competition on GMAT Club with an amazing opportunity to win over $40,000 worth of prizes!- Dec 17
09:00 AM PST
-10:00 AM PST
Join Manhattan Prep instructor Whitney Garner for a fun—and thorough—review of logic-based (non-math) problems, with a particular emphasis on Data Sufficiency and Two-Parts. - Dec 18
10:00 AM PST
-11:00 AM PST
Here is the essential guide to securing scholarships as an MBA student! In this video, we explore the various types of scholarships available, including need-based and merit-based options.
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
51% (03:33) correct
49%
(03:16)
wrong
based on 90
sessions
History
Date
Time
Result
Not Attempted Yet
An ice-cream vendor can sell 100 ice-cream bricks for Rs.800 each. He realizes that he can sell 50 more bricks for every 25 rupees he reduces in the selling price of the ice-cream brick. What should be his selling price if he wants to maximize revenue? (The answer must be a multiple of 25)
A. 350
B. 375
C. 400
D. 425
E. 450
A. 350
B. 375
C. 400
D. 425
E. 450
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Problem Solving (PS) Forum
Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
yashikaaggarwal
Senior Moderator - Masters Forum
Joined: 19 Jan 2020
Last visit: 09 Dec 2024
Posts: 3,116
Own Kudos:
Given Kudos: 1,510
Location: India
Schools: Cranfield (A) Warwick MiM "23 (M)
GPA: 4
WE:Analyst (Internet and New Media)
22 Jul 2022, 22:12
Kudos
Bookmarks
To find the maximum revenue, put revenue equal to x
100+50(x)*800-25(x) = Maximum Revenue
100+50x*800-25x = Maximum Revenue
80,000 - 1250x^2 + 40,000x -2500x = Maximum Revenue
80,000 - 1250x^2 + 37,500x = Maximum Revenue
Derivating equation
2500x = 37500
X = 15
So the revenue will be maximum when the selling price = 800-25*15 = 425
Answer is D
Posted from my mobile device
100+50(x)*800-25(x) = Maximum Revenue
100+50x*800-25x = Maximum Revenue
80,000 - 1250x^2 + 40,000x -2500x = Maximum Revenue
80,000 - 1250x^2 + 37,500x = Maximum Revenue
Derivating equation
2500x = 37500
X = 15
So the revenue will be maximum when the selling price = 800-25*15 = 425
Answer is D
Posted from my mobile device
genericUser
Joined: 31 Jan 2022
Last visit: 22 Dec 2023
Posts: 113
Own Kudos:
Given Kudos: 35
Location: Italy
Schools: SDA Bocconi "24 (M)
GMAT 1: 670 Q49 V33
GMAT 2: 690 Q47 V37
GPA: 3.9
23 Jul 2022, 01:17
Kudos
Bookmarks
An ice-cream vendor can sell 100 ice-cream bricks for Rs.800 each. He realizes that he can sell 50 more bricks for every 25 rupees he reduces in the selling price of the ice-cream brick. What should be his selling price if he wants to maximize revenue? (The answer must be a multiple of 25)
without derivatives...
let \(x=\frac{800-price_{new}}{25}\) be the number of time the price is lowered by 25
let \(r\) be the revenue
set up the equation
(1) \(r=(100+50x)(800-25x)\)
Plug in the answer
Start from C
\(x=\frac{400}{25}=16\)
\(r=(100+50*16)(800-25*16) \to r=(900)(400)=360000\)
Plub in D
\(r=(850)(425)=361250\)
Plub in B
\(r=(950)(375)=35xxxx\)
Second degree equation has a max/mix and the decreases/increases. from equation (1) we notice that the coefficient of \(x^2\) is negative, thus after the maximum the revenue will decrease.
Maximum is in D, and then the revenue will start to fall.
A. 350
B. 375
C. 400
D. 425
E. 450
Dear ThatDudeKnows,
I have spent to much time on this, do you have some shortcuts to suggest?
Regards,
R
without derivatives...
let \(x=\frac{800-price_{new}}{25}\) be the number of time the price is lowered by 25
let \(r\) be the revenue
set up the equation
(1) \(r=(100+50x)(800-25x)\)
Plug in the answer
Start from C
\(x=\frac{400}{25}=16\)
\(r=(100+50*16)(800-25*16) \to r=(900)(400)=360000\)
Plub in D
\(r=(850)(425)=361250\)
Plub in B
\(r=(950)(375)=35xxxx\)
Second degree equation has a max/mix and the decreases/increases. from equation (1) we notice that the coefficient of \(x^2\) is negative, thus after the maximum the revenue will decrease.
Maximum is in D, and then the revenue will start to fall.
A. 350
B. 375
C. 400
D. 425
E. 450
Dear ThatDudeKnows,
I have spent to much time on this, do you have some shortcuts to suggest?
Regards,
R
