BabyCare, a daycare center for babies ages 0-5, is buying supplies for

1)a)False,since the baby food requires:
30*3=90 cans ,now for 20 days it is
90*20=1800 cans,now each can is of 5$, so total amount is 1800*5=9000,but on 50+ cans it is giving 20% off so final price would be 9000*.8=7200,which is less than 7500
b)True,For babies each baby requires 30*1=30 toys and each one requires 30*2=60 toys,since after 2 weeks new toys are required,so for Barneys toys price per toy is 10$,so total is 600,while for Mighty avenger per toy price is 4$,so total is 240,hence mighty is cheaper than Barneys
c)True,yes after discount we can Mighty avenger toys with a budget<220$

2)B,So here for 400 cans the per can amount is 5$,so total is 400*5=2000$,now with a 20% discount final price is 2000*.8=1600$

3)a)If sharing of toys is there then problem for 50 baby vs 20 baby wouldn't be there.
b)In this case the cost wouldn't increase.
c)If diapers are not supplied at 50 baby then the cost would increase and it will not be offset by giving toys

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You did not include the 20% off in your calculation. After discount it is 7,200, less than 7,500.

As premises mention 'each baby gets one toy. New toys are circulated into the playpens every 2 wks and the old toys are discarded', I think we should take consideration of cost of toy per baby per day in both 20-baby maximum or at a 50-baby maximum senerios

Could we pls get an official answer for this?

1. Assess the following statements as either True or False based on the information provided.

(a) The cost of supplying baby food for the month for BabyCare is more than $7,500.
30 babies will require 30 * 3 cans per day * 5 days per week * 4 week or 1800 cans, that is 1800/5 or 360 packs for $25 per pack.
But there is a discount of 20% for 50+ cans. Hence cost is 360*25*0.8 = $7200.
Not true

(b) The pre-discount cost of getting all Mighty Avenger Toys for the month is cheaper than getting all Barney's Action Toys for the month.
The cost of Mighty Avenger toys is $4 as against $10 for Barney Action toys.
Hence, true.

BabyCare can supply enough toys for the month with a budget of less than $220.
Number of toys required = 30 * 2 or 60 toys for $4 per toy = $240. But as the number of toys is 50+, a discount of 10%, so 240-24 or $216.
Hence true


2. BabyCare is placing this month's order for 400 cans of baby food. How much will BabyCare have to pay for the 400 cans of baby food?
Pretty straight forward
400 cans or 400/5, that is 80 packages. Cost with a 20% discount is 80*25*0.8 or $1600.

While BabyCare is currently accomodating 30 babies per month, it is contemplating improving its quality of service or increasing the number of babies it cares for in order to increase profit. Currently, management is trying to determine whether to run its business at a 20-baby maximum or at a 50-baby maximum.

3. Which of the following pieces of information would increase the total cost per baby of running a 50-baby maximum day care center versus a 20-baby maximum day care center. Assume the business runs at full capacity and it is not eligible for any bulk discounts for the month of February.
No bulk discount means that the cost of running per baby will be same immaterial of the number in case they have same availability of material.
(a) At a 20-baby maximum, each baby gets his own toy; at a 50-baby maximum each baby must share his toy with one other baby.
Clearly the cost of 20-baby maximum will be more as cost of one toy will be more than cost of half a toy.
NO

(b) At a 20-baby maximum, BabyCare plans to allot 1 baby food package per baby per day and supply 1 diaper package per baby per week.
So, 1 baby food package has 5 cans per package so costs 2 cans extra or $5*2 extra in amount as compared to normal feed.
Next, 6 diaper per 5 days means 1.2 diaper as against 2 diapers per day would mean a saving of $2.5 * (2-1.2) or $2.
Overall 10-2 or $8 costlier per baby per day.
NO

(c) At a 20-baby maximum, BabyCare will supply 1 package of diapers each week to the babies but no toys. At a 50-baby maximum, the babies' parents will have to supply their own diapers; BabyCare will not supply diapers. BabyCare will, however, supply a Barney's Action toy package to each baby each week.
The comparison is in diapers and toys for each, so let us check the cost in each.
20-baby: 1 package of diapers so $15 + $0 for toys = $15 in a week for one baby apart from regular expense on food. 
50-baby: 1 package of Barney's Action toys, so $20+ $0 for diapers in a week for one baby apart from regular expense on food.
Hence, 50-baby maximum spends $20-$15 extra for a week on a baby.
YES­

­Hi chetan2u,
for the first part even with sharing daycare will have to buy 25 toys which is more tha 20 toys for 20 baby maximum.
can you olease help me with what am I processing incorrectly.

Thanks

­There should be no discount, as it is based on the number of packs, not cans. The Baby Care will need 25 packs, therefore no discount should be applied

­
chetan2u

Regarding the question 3c
Could you please elaborate how you concluded that at the 20-baby scenario 1 package of diapers would cost $6? ("20-baby: 1 package of diapers so $6 + $0 for toys = $6 in a week for one baby apart from regular expense on food.")
Based on the information given, we know that one pack of diapers (including. 6 diapers) would cost $15 without a discount ($14.25 with a discount).­

­That is an error. Thank you
It will be 15$ indeed.

­curiousPope
We are looking at cost per baby.
Each baby gets half a toy so cost is half a toy per baby, while for 20-day programme, it is 1 toy per baby.­

For Question 1 Third point, should not the answer be false. For the entire month we need 600 toys total, if we take the "Mighty Avenger Toys" the total code before discount would be 2400 and after it will be 2160? Is my understanding incorrect somewhere?

GMATNinja karishma - Can you help me explain what the 3rd question is asking? I am not able to understand whether it is comparing the cost of 50 babies with 20 babies or we need to find whether the cost of 50 or 20 babies will be greater than the cost of 30 babies - as given in the question?

What is this lmao, only post she has made.

Cant we say 3.b "No" because there is no info about 50-max?

KarishmaB GMATNinja MartyMurray - Can you please help with the below statement

Q1 3rd part - BabyCare can supply enough toys for the month with a budget of less than $220
Total no. of toys needed = 30 old toys since we need 1 toy for each baby. Then we also need new toys that is given every 2 weeks = 2 toys per baby = 60 toys. Total toys = 90 toys for all the babies.
As given in the question
Barney's Action Toys 2 toys per pack $20
Mighty Avenger Toys 3 toys per pack $12
So,
90/2 = 45 packs for Barney * 18 (10% discount)
90/3 = 30 packs for Mighty *10.8 (10% discount)

The value in both the cases is not less than 220. Then, how is the statement True?

Can you also explain Q3 - what does the question means and the reasoning for the same.

Thanks

how am i supposed to ans all of them under 6 mins. it took me nearly 12 mins and still got 3rd question incorrect.