GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 22 Nov 2018, 03:29

Thanksgiving Holiday

GMAT Club Tests are Free and Open until midnight Nov 22, Pacific Time


Close

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
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.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
  • Key Strategies to Master GMAT SC

     November 24, 2018

     November 24, 2018

     07:00 AM PST

     09:00 AM PST

    Attend this webinar to learn how to leverage Meaning and Logic to solve the most challenging Sentence Correction Questions.
  • GMATbuster's Weekly GMAT Quant Quiz

     November 24, 2018

     November 24, 2018

     09:00 AM PST

     11:00 AM PST

    We will start promptly at 09 AM Pacific Time. Quiz will last approximately 2 hours. Make sure you are on time or you will be at a disadvantage.

Crazy Eddie has a key chain factory. Eddie managed to

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Senior Manager
Senior Manager
User avatar
Joined: 21 Oct 2013
Posts: 419
Crazy Eddie has a key chain factory. Eddie managed to  [#permalink]

Show Tags

New post 21 Jul 2014, 07:38
2
3
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

86% (02:23) correct 14% (02:38) wrong based on 113 sessions

HideShow timer Statistics

Crazy Eddie has a key chain factory. Eddie managed to decrease the cost of manufacturing his key chains while keeping the same selling price, and thus increased the profit from the sale of each key chain from 20% of the selling price to 50% of the selling price. If the manufacturing cost is now $50, what was it before the decrease?

A. $20
B. $40
C. $50
D. $80
E. $100
Magoosh GMAT Instructor
User avatar
G
Joined: 28 Dec 2011
Posts: 4488
Re: Crazy Eddie has a key chain factory. Eddie managed to  [#permalink]

Show Tags

New post 21 Jul 2014, 09:02
3
goodyear2013 wrote:
Crazy Eddie has a key chain factory. Eddie managed to decrease the cost of manufacturing his key chains while keeping the same selling price, and thus increased the profit from the sale of each key chain from 20% of the selling price to 50% of the selling price. If the manufacturing cost is now $50, what was it before the decrease?

A. $20
B. $40
C. $50
D. $80
E. $100

Dear goodyear2013,
I'm happy to help. :-) This is a relatively straightforward problem, not very challenging. BTW, "Crazy Eddie" was the actually name of an electronics chain on the East Coast of the USA back in the 1970s.

Manufacturing now is $50. They now are making a 50% profit, so the selling price must be $100.

They had this same selling price, $100, before they made the change, and had a profit of 20%, so the manufacturing must have been $80. Answer = (D).

Actually, this question is a bit too easy even for the SAT. The question writer designed the question so that the whole, 100%, was equal to $100 --- that plays into many naive assumptions of test takers, exactly the kinds of assumptions that the real GMAT challenges. It would be a mistake for any student to think that, because they find this question easy, they are making progress with GMAT math. In that sense, calling this question a GMAT question is a bit deceptive, because it could misrepresent the difficulty of GMAT Quant section to students.

Here are some more challenging GMAT-like questions involving percents:
http://magoosh.com/gmat/2013/gmat-quant ... -percents/

That's my two cents.

Mike :-)
_________________

Mike McGarry
Magoosh Test Prep


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

SVP
SVP
User avatar
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1826
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: Crazy Eddie has a key chain factory. Eddie managed to  [#permalink]

Show Tags

New post 02 Dec 2014, 23:19
............................ Cost Price .................. Selling Price ................... Profit

Earlier ................... x ...................................... y .......................... \(y-x = \frac{20}{100} y\) .............. (1)


Now ...................... 50 ....................................... y ......................... \(y-50 = \frac{50}{100} y\)

2(y-50) = y

y = 100

Placing value of y in equation (1)

\(100-x = \frac{100}{5}\)

x = 80

Answer = D
_________________

Kindly press "+1 Kudos" to appreciate :)

Director
Director
User avatar
G
Joined: 23 Jan 2013
Posts: 569
Schools: Cambridge'16
Re: Crazy Eddie has a key chain factory. Eddie managed to  [#permalink]

Show Tags

New post 03 Dec 2014, 01:28
cost+profit=income (selling price)

profit now = 0.5x or x-50
0.5x=x-50
50=0.5x
x=100$ is selling price

so, profit before was 0.2*100=20$
cost=100-20=80$

D
Director
Director
avatar
S
Joined: 12 Nov 2016
Posts: 742
Location: United States
Schools: Yale '18
GMAT 1: 650 Q43 V37
GRE 1: Q157 V158
GPA: 2.66
Re: Crazy Eddie has a key chain factory. Eddie managed to  [#permalink]

Show Tags

New post 23 Jun 2017, 23:50
goodyear2013 wrote:
Crazy Eddie has a key chain factory. Eddie managed to decrease the cost of manufacturing his key chains while keeping the same selling price, and thus increased the profit from the sale of each key chain from 20% of the selling price to 50% of the selling price. If the manufacturing cost is now $50, what was it before the decrease?

A. $20
B. $40
C. $50
D. $80
E. $100


If the selling price of a key chain made by Eddie is held constant and the profits earned from manufacturing the key chain at a different price are higher then the original manufacturing price must be higher because the profit as a percentage of the selling price has increased.

$100 selling price - $80 Manufacturing Price = 20 dollar profit or alternatively $100(.20%)

$100 selling price- $50 Manufacturing Price - = 50 dollar profit or alternatively $100(.50%)

Thus
"D"
Intern
Intern
avatar
B
Joined: 17 Apr 2013
Posts: 2
CAT Tests
Re: Crazy Eddie has a key chain factory. Eddie managed to  [#permalink]

Show Tags

New post 07 Sep 2018, 23:34
A,B,C--> out as less than or equal 50. Then keep 100 and 80 to the below equation. 100 is not matching so out.
Ans D.

For D if we put CP=80 from the ans choice
x=SP
Profit= SP-CP
Earlier
=====
0.8x=x-80
x=100

Now
===
1.5x=x-50
0.5x=50
x=100. So matching.
GMAT Club Bot
Re: Crazy Eddie has a key chain factory. Eddie managed to &nbs [#permalink] 07 Sep 2018, 23:34
Display posts from previous: Sort by

Crazy Eddie has a key chain factory. Eddie managed to

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.