Author 
Message 
TAGS:

Hide Tags

Director
Joined: 23 Jun 2005
Posts: 827

For Manufacturer M, the cost C of producing X units of its [#permalink]
Show Tags
Updated on: 01 Jul 2013, 22:51
2
This post received KUDOS
7
This post was BOOKMARKED
Question Stats:
59% (01:41) correct 41% (01:37) wrong based on 376 sessions
HideShow timer Statistics
For Manufacturer M, the cost C of producing X units of its product per month is given by C = kx + t, where C is in dollars and k and t are constants. Last month, if Manufacturer M produced 1,000 units of its product and sold all the units for k + 60 dollars each, what was manufacturer M's gross profit on the 1000 units? (1) Last month, Manufacturer M's revenue from the sale of the 1000 units was $150,000 (2) Manufacturer M's cost of producing 500 units in a month is $45,000 less than its cost of producing 1,000 units in a month.
Official Answer and Stats are available only to registered users. Register/ Login.
Originally posted by anandsebastin on 28 Oct 2006, 15:49.
Last edited by Bunuel on 01 Jul 2013, 22:51, edited 1 time in total.
Edited the question and added the OA.



Senior Manager
Joined: 31 Jul 2006
Posts: 439

Re: DS: Gross profit for Manufacturer M [#permalink]
Show Tags
28 Oct 2006, 18:22
anandsebastin wrote: For Manufacturer M, the cost C of producing x units of its product per month is given by C= kx+t, where c is in dollars and k and t are constants. Last month, if Manufacturer M produced 1,000 units of its product and sold all the units for k+60 dollars each, what was Manufacturer M's gross profit on the 1,000 units?
(1) Last month, Manufacturer M's revenue from the sale of the 1,000 units was $150,000.
(2) Manufacturer M's cost of producing 500 units in a month is $45,000 less than its cost of producing 1,000 units in a month.
(OA may be late. Sorry!)
This smells like C. Profit=RevenueCost
1) tells us total revenue for 1,000 units. now we need cost
2) tells us that 500 units cost 45,000, so 1,000 units cost 90,000
150,00090,000=60,000



Senior Manager
Joined: 08 Jun 2006
Posts: 329
Location: Washington DC

1
This post received KUDOS
Getting E
Profit = revenue â€“ cost = (k + 60) * 1000 â€“ (1000k + t) = 60000 â€“ t
We need to know the value of â€˜tâ€™ to calculate the profit
From 1: 150,000 = 1000 (k + 60)... canâ€™t calculate the value of t
From 2: 45,000 = C1000 â€“ C500 = (1000k + t)  (500k + t) = 500k... canâ€™t calculate the value of t
Together ..Insufficient



SVP
Joined: 24 Aug 2006
Posts: 2099

Re: DS: Gross profit for Manufacturer M [#permalink]
Show Tags
29 Oct 2006, 08:12
anandsebastin wrote: For Manufacturer M, the cost C of producing x units of its product per month is given by C= kx+t, where c is in dollars and k and t are constants. Last month, if Manufacturer M produced 1,000 units of its product and sold all the units for k+60 dollars each, what was Manufacturer M's gross profit on the 1,000 units?
(1) Last month, Manufacturer M's revenue from the sale of the 1,000 units was $150,000.
(2) Manufacturer M's cost of producing 500 units in a month is $45,000 less than its cost of producing 1,000 units in a month.
(OA may be late. Sorry!)
Looks to be B
1) 1,000k+t=1,000(k+60)150,000
solve, and you get
t=90,000
2) 500k+t+45,000=1,000k+t
solve and you get
90=k
90+60=150
150*1,000 = 150,000



Manager
Joined: 25 Sep 2006
Posts: 148

1
This post received KUDOS
Agree with E
Question ask for Profit, which needs the constant t.
Both I and II independently give informations about k=90 , which don't help.



Director
Joined: 29 Nov 2012
Posts: 828

Re: For Manufacturer M, the cost C of producing x units of its [#permalink]
Show Tags
01 Jul 2013, 22:38
How do you solve this one what are the equations! What's the OA?
_________________
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/gmatprepsoftwareanalysisandwhatifscenarios146146.html



Math Expert
Joined: 02 Sep 2009
Posts: 44647

Re: For Manufacturer M, the cost C of producing x units of its [#permalink]
Show Tags
01 Jul 2013, 23:02
5
This post received KUDOS
Expert's post
4
This post was BOOKMARKED
fozzzy wrote: How do you solve this one what are the equations! What's the OA? For Manufacturer M, the cost C of producing X units of its product per month is given by C = kx + t, where C is in dollars and k and t are constants. Last month, if Manufacturer M produced 1,000 units of its product and sold all the units for k + 60 dollars each, what was manufacturer M's gross profit on the 1000 units? {Gross Profit} = {Revenue}  {Cost} = 1,000(k + 60)  (1,000k + t) (1) Last month, Manufacturer M's revenue from the sale of the 1,000 units was $150,000 > \(1,000(k + 60) = 150,000\) > \(k=90\). We still don't know the value of t. Not sufficient. (2) Manufacturer M's cost of producing 500 units in a month is $45,000 less than its cost of producing 1,000 units in a month. Since given that \(C = kx + t\), then from this statement we have that \((500k+t)+45.000=1000k+t\) > cancel t: \(500k+45.000=1000k\) > \(k=90\). We still don't know the value of t. Not sufficient. (1)+(2) We know k but not t. Not sufficient. Answer: E.
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
Collection of Questions: PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics



Manager
Joined: 10 Mar 2013
Posts: 246
GMAT 1: 620 Q44 V31 GMAT 2: 690 Q47 V37 GMAT 3: 610 Q47 V28 GMAT 4: 700 Q50 V34 GMAT 5: 700 Q49 V36 GMAT 6: 690 Q48 V35 GMAT 7: 750 Q49 V42 GMAT 8: 730 Q50 V39

Re: For Manufacturer M, the cost C of producing X units of its [#permalink]
Show Tags
16 Aug 2014, 04:34
Did this problem twice and still missed it. If you look closely, you will realize that the problem can be reduced to "find the value of t". Both (1) and (2) only give k, so the answer is E.



Director
Joined: 26 Oct 2016
Posts: 673
Location: United States
Concentration: Marketing, International Business
GPA: 4
WE: Education (Education)

Re: For Manufacturer M, the cost C of producing X units of its [#permalink]
Show Tags
14 Jan 2017, 13:52
c=kx+t In last month, cost=1000k+t; profit=1000(k+60) (1000k+t) =60000t, so, we need to solve t. From 1, 150000=1000*(k+60), there is no information about t. From 2, (1000k+t)(500k+t)=45000, still cannot solve out t. Answer is E
_________________
Thanks & Regards, Anaira Mitch



Target Test Prep Representative
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2298

Re: For Manufacturer M, the cost C of producing X units of its [#permalink]
Show Tags
11 Dec 2017, 12:01
anandsebastin wrote: For Manufacturer M, the cost C of producing X units of its product per month is given by C = kx + t, where C is in dollars and k and t are constants. Last month, if Manufacturer M produced 1,000 units of its product and sold all the units for k + 60 dollars each, what was manufacturer M's gross profit on the 1000 units?
(1) Last month, Manufacturer M's revenue from the sale of the 1000 units was $150,000 (2) Manufacturer M's cost of producing 500 units in a month is $45,000 less than its cost of producing 1,000 units in a month. We are given the formula c = kx + t, in which c is in dollars, x is the number of units produced per month, and k and t are constants. We are also given that last month manufacturer M produced 1000 units of its product and sold all the units for k + 60 dollars each. We need to determine manufacturer M's gross profit on the 1000 units. Thus, we have: c = k(1,000) + t Furthermore, since the manufacturer sells 1000 units for k + 60 dollars each, its revenue was 1000(k + 60) = 1000k + 60000. So, the gross profit is 1000k + 60000  (1000k + t ) = 60000  t. As we can see, if we can determine the value of t, then we can answer the question. Statement One Alone: Last month, manufacturer M's revenue from sale of the 1000 units was $150,000. Using the information in statement one, we can create the following equation: 1000k + 60,000 = 150,000 1000k = 90,000 k = 90 Although we have a value for k, we have no information about the value of t. Statement one alone is not sufficient to answer the question. We can eliminate answer choices A and D. Statement Two Alone: Manufacturer M's cost of producing 500 units in a month is $45,000 less than its cost of producing 1000 units in a month. Using the information in statement two, we can create the following equation: k(1,000) + t  [k(500) + t] = 45,000 1,000k + t  500k  t = 45,000 500k = 45,000 k = 90 Although we have a value for k, we still do not have enough information to determine the value of t. Statement two alone is not sufficient to answer the question. We can eliminate answer choice B. Statements One and Two Together: Since each statement allows us to find only the value of k (recall k = 90 in each statement), we still do not have enough information to determine the value of t, so we cannot determine the profit last month. Answer: E
_________________
Jeffery Miller
Head of GMAT Instruction
GMAT Quant SelfStudy Course
500+ lessons 3000+ practice problems 800+ HD solutions




Re: For Manufacturer M, the cost C of producing X units of its
[#permalink]
11 Dec 2017, 12:01






