It is currently 22 Sep 2017, 06:46

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

Events & Promotions in June
Open Detailed Calendar

Firm A's revenues are described by the equation Ra = 17.12x

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

Hide Tags

Manager
Manager
User avatar
Joined: 04 Apr 2010
Posts: 160

Kudos [?]: 213 [0], given: 31

Firm A's revenues are described by the equation Ra = 17.12x [#permalink]

Show Tags

New post 30 Jan 2011, 17:49
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

63% (03:03) correct 37% (03:03) wrong based on 116 sessions

HideShow timer Statistics

Firm A's revenues are described by the equation Ra = 17.12x and its costs by Ca = 12.87x + 2400.
Firm B's revenues are described by the equation Rb = 13.27x and its costs by Cb = 8.77x + 1500.

(x denotes the quantity of sales).

If A's volume of sales increases from 1000 to 2000 over the same period that B's volume increases from 2000 to 3000, the percent increase in profits for the firm with the biggest dollar increase in profits is

A. 20%
B. 30%
C. 60%
D. 50%
E. 33%
[Reveal] Spoiler: OA

_________________

Consider me giving KUDOS, if you find my post helpful.
If at first you don't succeed, you're running about average. ~Anonymous

Kudos [?]: 213 [0], given: 31

3 KUDOS received
Manager
Manager
avatar
Status: UC Berkeley 2012
Joined: 03 Jul 2010
Posts: 190

Kudos [?]: 19 [3], given: 10

Location: United States
Concentration: Economics, Finance
GPA: 4
WE: Consulting (Investment Banking)
GMAT ToolKit User
Re: Problem solving--need the short cut way to answer this [#permalink]

Show Tags

New post 31 Jan 2011, 03:29
3
This post received
KUDOS
Ok, I do not know whether it is exactly what you want to hear but I did it that way: first look at difference between revenue and variable cost => take the bigger one (b) which gives you: 4.5x-1500 just plug in 2000 and 3000. you get 7500 and 12000 (difference 4500). 4500> 0.5*7500 so 60%

took me less than 1 minute, so I do not know whether there is actually a shorter way

Kudos [?]: 19 [3], given: 10

Manager
Manager
User avatar
Joined: 04 Apr 2010
Posts: 160

Kudos [?]: 213 [0], given: 31

Re: Problem solving--need the short cut way to answer this [#permalink]

Show Tags

New post 31 Jan 2011, 05:50
this one looks great approach. Thanks!
_________________

Consider me giving KUDOS, if you find my post helpful.
If at first you don't succeed, you're running about average. ~Anonymous

Kudos [?]: 213 [0], given: 31

Expert Post
2 KUDOS received
Veritas Prep GMAT Instructor
User avatar
G
Joined: 16 Oct 2010
Posts: 7615

Kudos [?]: 16918 [2], given: 230

Location: Pune, India
Re: Problem solving--need the short cut way to answer this [#permalink]

Show Tags

New post 31 Jan 2011, 20:25
2
This post received
KUDOS
Expert's post
bhandariavi wrote:
:oops: Firm A's revenues are described by the equation Ra = 17.12x and its costs by Ca = 12.87x + 2400.

Firm B's revenues are described by the equation Rb = 13.27x and its costs by Cb = 8.77x + 1500.

(x denotes the quantity of sales).
If A's volume of sales increases from 1000 to 2000 over the same period that B's volume increases from 2000 to 3000, the percent increase in profits for the firm with the biggest dollar increase in profits is

1) 20% 2)30% 3) 60% 4)50% 5)33%

I can calculate the answer But i need the short cut way to do this.
Testluv, Bunuel, Pkit, shrouded1, icandynyone or anyone who can solve this with short cut approach ----Help me!!!!!!


We need to compare profits so find out profit in the two cases:
A: 17.12x - (12.87x + 2400) = 4.25x - 2400
B: 13.27x - (8.77x + 1500) = 4.5x - 1500
In both cases, x changes by 1000 so B will give a higher dollar increase (because 4.5 > 4.25)
% increase in B's profit: \(\frac{4.5*1000}{{4.5*2000 - 1500}} * 100 = 60%\)
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Kudos [?]: 16918 [2], given: 230

Director
Director
avatar
Joined: 29 Nov 2012
Posts: 877

Kudos [?]: 1361 [0], given: 543

Re: Firm A's revenues are described by the equation Ra = 17.12x [#permalink]

Show Tags

New post 21 May 2013, 01:19
VeritasPrepKarishma wrote:
We need to compare profits so find out profit in the two cases:
A: 17.12x - (12.87x + 2400) = 4.25x - 2400
B: 13.27x - (8.77x + 1500) = 4.5x - 1500
In both cases, x changes by 1000 so B will give a higher dollar increase (because 4.5 > 4.25)
% increase in B's profit:


why is it 2000 in the denominator?
_________________

Click +1 Kudos if my post helped...

Amazing Free video explanation for all Quant questions from OG 13 and much more http://www.gmatquantum.com/og13th/

GMAT Prep software What if scenarios http://gmatclub.com/forum/gmat-prep-software-analysis-and-what-if-scenarios-146146.html

Kudos [?]: 1361 [0], given: 543

Expert Post
Veritas Prep GMAT Instructor
User avatar
G
Joined: 16 Oct 2010
Posts: 7615

Kudos [?]: 16918 [0], given: 230

Location: Pune, India
Re: Firm A's revenues are described by the equation Ra = 17.12x [#permalink]

Show Tags

New post 21 May 2013, 03:57
fozzzy wrote:
VeritasPrepKarishma wrote:
We need to compare profits so find out profit in the two cases:
A: 17.12x - (12.87x + 2400) = 4.25x - 2400
B: 13.27x - (8.77x + 1500) = 4.5x - 1500
In both cases, x changes by 1000 so B will give a higher dollar increase (because 4.5 > 4.25)
% increase in B's profit:


why is it 2000 in the denominator?



Because you need the % increase in profit.
The increase in profit = 4.5 * 1000 (increase in the units from 2000 to 3000)
The original profit = 4.5*2000 - 1500 (initially 2000 units were sold)

% increase = (4.5 * 1000)/(4.5*2000 - 1500) * 100
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Kudos [?]: 16918 [0], given: 230

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 09 Sep 2013
Posts: 17592

Kudos [?]: 270 [0], given: 0

Premium Member
Re: Firm A's revenues are described by the equation Ra = 17.12x [#permalink]

Show Tags

New post 29 Jul 2014, 00:25
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.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

Kudos [?]: 270 [0], given: 0

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 09 Sep 2013
Posts: 17592

Kudos [?]: 270 [0], given: 0

Premium Member
Re: Firm A's revenues are described by the equation Ra = 17.12x [#permalink]

Show Tags

New post 09 Aug 2017, 15:54
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.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

Kudos [?]: 270 [0], given: 0

Re: Firm A's revenues are described by the equation Ra = 17.12x   [#permalink] 09 Aug 2017, 15:54
    Similar topics Author Replies Last post
Similar
Topics:
5 EXPERTS_POSTS_IN_THIS_TOPIC Which of the following ratios is most nearly equal to the ra GMATD11 5 09 Jun 2017, 18:59
6 Line P is described by the equation 3x + 2y - 4 = 0. Which guygmat 4 14 Mar 2016, 22:58
29 EXPERTS_POSTS_IN_THIS_TOPIC A firm's annual revenue grows twice as fast as its costs. In WoundedTiger 15 15 Aug 2017, 01:12
16 EXPERTS_POSTS_IN_THIS_TOPIC The equation x = 2y^2 + 5y - 17, describes a parabola in the sanjoo 6 18 Oct 2012, 10:14
2 EXPERTS_POSTS_IN_THIS_TOPIC Which of the following equations describes a line that is perpendicula reto 3 14 Jul 2016, 09:32
Display posts from previous: Sort by

Firm A's revenues are described by the equation Ra = 17.12x

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


GMAT Club MBA Forum Home| About| Terms and Conditions| 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®.