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 Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

Company C sells a line of 25 products with an average retail [#permalink]

Show Tags

21 Nov 2005, 20:18

1

This post received KUDOS

9

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

25% (medium)

Question Stats:

74% (02:58) correct
26% (02:13) wrong based on 398 sessions

HideShow timer Statistics

Company C sells a line of 25 products with an average retail price of $1,200. If none of these products sells for less than $420, and exactly 10 of the products sell for less than $1,000, what is the greatest possible selling price of the most expensive product?

A. $2,600 B. $3,900 C. $7,800 D. $11,800 E. $18,200

Min price of 10 products under $1000 = 420*10 = 4200
Since other products are $1000 or greater, let us say the next 14 products cost $1000 each = $14000

Total for 24 prod = 18200
Total for 25 prod = 25*1200 = 30000
25th product (most expensive) = 30000 - 18200 = 11800 (D)

Company C sells a line of 25 products with an average retail price of $1200. if none of these product sells for less than $420 and exactaly 10 of the products sell for less than $1000, What is the greatest possible selling price of the most expensive product?

a)2600 b)3900 c)7800 d)11,800 e)18,200

My answer is D

In order to find the greatest selling price, we have to minimize the 24 products.

Total price = $25*$1200 = $30,000

Min 10 of the products = 10*$420 = $4,200
Min the remaining 14 products = 14*$1000 = $14,000

D - 11800.
Total price = 25*1200 = 30000
Min. price = 10 * 420 = 4200
=> Remaining 15 should sum to (30000 - 4200) = 25800
Let us assume that 14 of these cost 1000 each and they total to 14000
HEnce 25800 - 14000 = 11800 should be the greatest possible SP.

Re: Company C sells a line of 25 products with an average retail price of [#permalink]

Show Tags

16 Oct 2010, 00:36

1

This post received KUDOS

1

This post was BOOKMARKED

prashantbacchewar wrote:

Comapany C sells a line of 25 products with an average retail price of $1200. If none of these products sell for less than $420, and exactly 10 of the products sell for less than $1000, what is greatest possible selling price of the most expensive product.

a) 2600 b) 3900 c) 7800 d) 11800 e) 18200

This question is from Kaplan preimere but somehow I am not able to understand the explaination. Need help

Thanks

Right, so we know that the average is $1200. We also know the minimum possible value is $420 and that exactly 10 products sell for less than $1000. If we have to maximize the price of the most expensive object, keeping the average fixed, we need to make all the other 24 objects as cheap as possible.

Now we know there are 10 objects < $1000 and that the minimum price is $420. So in the optimal case, all ten will cost $420. For the other 14 objects, the minimum price we can allocate to them is $1000, as making it lower will violate the ten object constraint.

What we also know if total price = 1200*25 Therefore, 420*10 + 1000*14 + x = 1200*25, x=$11800

Answer is (d)

Let me know if anything isn't clear
_________________

Re: Company C sells a line of 25 products with an average retail [#permalink]

Show Tags

17 Dec 2012, 01:40

Sorry guys. Still feel like this question is missing something. I understand why 10 products are priced at $420. Why aren't the remaining 14 products also priced at $420 to maximize the final products price? No where in the questions does it say that the other products must be priced at $1000.

Thanks in advance.

________________________

Previous posted answer... Min price of 10 products under $1000 = 420*10 = 4200 Since other products are $1000 or greater, let us say the next 14 products cost $1000 each = $14000

Total for 24 prod = 18200 Total for 25 prod = 25*1200 = 30000 25th product (most expensive) = 30000 - 18200 = 11800 (D)

Sorry guys. Still feel like this question is missing something. I understand why 10 products are priced at $420. Why aren't the remaining 14 products also priced at $420 to maximize the final products price? No where in the questions does it say that the other products must be priced at $1000.

Thanks in advance.

Because if the remaining 14 products are also priced at $420, then we'd have that 10+14=24 items are less than $1,000, and we are told that EXACTLY 10 of the products are priced less than $1,000,

Company C sells a line of 25 products with an average retail price of $1,200. If none of these products sells for less than $420, and exactly 10 of the products sell for less than $1,000, what is the greatest possible selling price of the most expensive product?

A. $2,600 B. $3,900 C. $7,800 D. $11,800 E. $18,200

General rule for such kind of problems: to maximize one quantity, minimize the others; to minimize one quantity, maximize the others.

So, to maximize the price of the most expensive product we should minimize the prices of the remaining 24 products.

The average price of 25 products is $1,200 means that the total price of 25 products is 25*1,200=$30,000.

Next, since exactly 10 of the products sell for less than $1,000, then let's make these 10 items to be at $420 each (min possible).

Now, the remaining 14 items cannot be priced less than $1,000, thus the minimum possible price of each of these 14 items is $1,000.

Thus the minimum possible value of 24 products is 10*420+14*1,000=$18,200.

Therefore, the greatest possible selling price of the most expensive product is $30,000-$18,200=$11,800.

Re: Company C sells a line of 25 products with an average retail [#permalink]

Show Tags

25 Jun 2014, 09:29

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.
_________________

Re: Company C sells a line of 25 products with an average retail price of [#permalink]

Show Tags

28 Apr 2015, 03:18

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.
_________________

Re: Company C sells a line of 25 products with an average retail [#permalink]

Show Tags

28 Apr 2015, 09:55

Total value of the products sold by the company = 25*1200 = 30000

For 10 of the products sell that sell for less than $1,000, assume that each of them sold at the minimum price of 420.

So, 15 products are left and we have to maximize the selling price of 1 of those 15 -> We have to minimize the selling price of the rest of the 14 products

Re: Company C sells a line of 25 products with an average retail [#permalink]

Show Tags

22 Jul 2016, 19:58

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.
_________________

There’s something in Pacific North West that you cannot find anywhere else. The atmosphere and scenic nature are next to none, with mountains on one side and ocean on...

This month I got selected by Stanford GSB to be included in “Best & Brightest, Class of 2017” by Poets & Quants. Besides feeling honored for being part of...

Joe Navarro is an ex FBI agent who was a founding member of the FBI’s Behavioural Analysis Program. He was a body language expert who he used his ability to successfully...