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.
Jun 1006:00 AM PDT
-06:15 PM PDT
Register for the GMAT Club Virtual MBA Spotlight Fair – the world’s premier event for serious MBA candidates. This is your chance to hear directly from Admissions Directors at nearly every Top 30 MBA program..
09 Nov 2023, 06:09
Kudos
Bookmarks
Smallest value of an order from Supplier
A for which Supplier B would be cheaper: $369.64
A for which Supplier B would be cheaper: $369.64
Supplier B’s charge for a
$401.50 order from Supplier A: $400.42
$401.50 order from Supplier A: $400.42
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:
41% (03:41) correct
59%
(03:56)
wrong
based on 187
sessions
History
Date
Time
Result
Not Attempted Yet
McGraw-Hill
Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.
Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?
Data Insights (DI) Butler 2023-24 [Question #100, Date: Nov-09-2023] [Click here for Details]
Chris has the option to order parts from either of two suppliers. Supplier A offers free shipping but prices items an average of 3.5% higher than Supplier B. Supplier B offers the lower prices but will add a shipping charge to all orders. The shipping charge is $7.50 on orders less than $200, $12.50 on orders from $200 to $500, and $15 on orders over $500. Chris finds Supplier A to be more economical for small purchases but wonders if there is an order size for which Supplier B would be cheaper.
Find the smallest value of an order from Supplier A for which an identical order from Supplier B would be cheaper. If an order costs $401.50 from Supplier A, what will the same order cost from Supplier B?
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 Two-part Analysis (TPA) 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!
|
Smallest value of an order from Supplier A for which Supplier B would be cheaper |
Supplier B’s charge for a $401.50 order from Supplier A |
|
| $357.00 | ||
| $369.64 | ||
| $388.00 | ||
| $400.42 | ||
| $401.50 | ||
| $414.00 |
ShowHide Answer
Official Answer
Smallest value of an order from Supplier
A for which Supplier B would be cheaper: $369.64
A for which Supplier B would be cheaper: $369.64
Supplier B’s charge for a
$401.50 order from Supplier A: $400.42
$401.50 order from Supplier A: $400.42
09 Nov 2023, 11:16
Kudos
Bookmarks
(A) Smallest value of an order from Supplier A for which Supplier B would be cheaper
All values are in the range excess of $350; so, the shipping cost (Supplier B) will be $12.50
Smallest value of an order from Supplier A for which Supplier B would be cheaper;
implies
3.5 % excess value (in case of Supplier A) = Shipping charge (Supplier )
ie, 3.5 % of item price = $12.50
Item price = $12.50 / 0.0350
= $357.14
Hence, Order value = $357.14 + 12.50
= $369.64
(B) Supplier B’s charge for a $401.50 order from Supplier A
If Supplier A charges $401.50 for the order ; then
Item price = $401.50 / 1.0350 (since, the order cost will be 3.5% excess for Supplier A)
= $387.92
Hence,
Order Cost for Supplier B = $387.92 + $12.50 (ie, Shipping charge)
= $400.42
All values are in the range excess of $350; so, the shipping cost (Supplier B) will be $12.50
Smallest value of an order from Supplier A for which Supplier B would be cheaper;
implies
3.5 % excess value (in case of Supplier A) = Shipping charge (Supplier )
ie, 3.5 % of item price = $12.50
Item price = $12.50 / 0.0350
= $357.14
Hence, Order value = $357.14 + 12.50
= $369.64
(B) Supplier B’s charge for a $401.50 order from Supplier A
If Supplier A charges $401.50 for the order ; then
Item price = $401.50 / 1.0350 (since, the order cost will be 3.5% excess for Supplier A)
= $387.92
Hence,
Order Cost for Supplier B = $387.92 + $12.50 (ie, Shipping charge)
= $400.42
27 Aug 2024, 08:47
Kudos
Bookmarks
for 369.64 both would ultimately cost the same...not cheaper right?
103.5x = 369.64
100x=357.14
plus shipping 12.5 gives 369.64
103.5x = 369.64
100x=357.14
plus shipping 12.5 gives 369.64
