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

It is currently 18 Jul 2018, 05:55

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

In 2003 Acme Computer priced its computers five times higher

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

Hide Tags

3 KUDOS received
Manager
Manager
avatar
Joined: 11 Apr 2007
Posts: 139
In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 16 Apr 2008, 20:48
3
1
16
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

54% (00:50) correct 46% (00:53) wrong based on 554 sessions

HideShow timer Statistics

In 2003 Acme Computer priced its computers five times higher than its printers. What is the ratio of its gross revenue for computers and printers respectively in the year 2003?

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

(2) It sold each computer for $1000.
Most Helpful Community Reply
11 KUDOS received
Director
Director
avatar
Joined: 10 Sep 2007
Posts: 912
Re: In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 16 Apr 2008, 21:17
11
2
Let say each printer cost p, then computer will cost 5p.

Statement 1:
Suppose 5x equipments were sold in first half, then computer = 3x and printer = 2x.
Similarly Suppose 3y equipments were sold in first half, then computer = 2y and printer = y.
Total computers sold = 3x + 2y
Total printers sold = 2x + y
Ratio = (3x+2y)*5p/(2x+y)*p = (3x+2y)*5/(2x+y), we need x and y to get the value so this statement alone is insufficient.

Statement 2:
Just tells us 5p = 1000 => p = 200
But nothing about how many of each equipment sold, so alone insufficient.

Combining both is not going to help either, as you can see from 1 that we need x, and y (not the value of p, that cancels out anyway).

Answer E.
General Discussion
VP
VP
avatar
Joined: 28 Dec 2005
Posts: 1482
Re: In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 17 Apr 2008, 04:48
E for me. We need to know 2 things: the price for each item, and the number of each item sold. Thats the only way we can calculate revenues for both.

So, from stat 1, we have some info on ratios, but nothing about price. Insuff.

From stat 2, we can get the price of both items, but theres no inform on quantity sold. Insuff.

Together, it looks like we have enough info, but we realize that the quantity is only given in terms of a ratio. So, theres no way to find out how many of computers and printers were actually sold. Together, insuff.
1 KUDOS received
VP
VP
avatar
Joined: 10 Jun 2007
Posts: 1397
Re: In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 17 Apr 2008, 09:34
1
1
moni77 wrote:
In 2003 Acme Computer priced its computers five times higher than its printers. What is the ratio of its gross revenue for computers and printers respectively in the year 2003?

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

(2) It sold each computer for $1000.


E.

C = Price of computer
P = price of printer
Nc = Number of computer sold
Np = Number of printer sold

Given
C=5P

Ratio of Gross Revenue = (C * Nc)/(P * Np) = 5*(Nc/Np)
(1) Not enough information. We cannot find total ratio using half a year ratio information.
INSUFFICIENT

(2) Totally irrelevant
INSUFFICIENT

Together, same...INSUFFICIENT
1 KUDOS received
Manager
Manager
avatar
Joined: 07 Apr 2014
Posts: 119
Re: In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 05 Sep 2014, 23:08
1
moni77 wrote:
In 2003 Acme Computer priced its computers five times higher than its printers. What is the ratio of its gross revenue for computers and printers respectively in the year 2003?

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

(2) It sold each computer for $1000.




c- price of computer
p- price of printer.

given c= 5p

Gross revenue - no of product * price.


1. first half : c:p --> 3.2 i.e 3x:2x where x is no of product sold. say if x=1 then for every 2 printer , 3 computers. and cycle goes on.
second half : c:p --> 2:1 i.e 2y:y same logic which applied for x.

applying the gross revenue formula...

to find the ratio for computer : printer is

(3x+2y) 5p : (2x+y) p

cancelling p -> (3x+2y) : (2x+y) --> since we know only the ratio & does know no of products hence Not suff.

2. Given price of computer is 1000 then printer is 200 but does know the no of products sold.

Hence Not suff.

1+2 --> still we are not sure exact no of products sold.

Hence E.
Manager
Manager
User avatar
B
Joined: 01 Aug 2014
Posts: 51
Re: In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 18 Feb 2016, 08:47
Pc = 5Pp
Rc/Rp = 5Pp*C/Pp*P <=> 5C/P =?
1) First half 2003: 3C1 = 2P1 , Second half 2003: 2C2 = P2
Not sufficient.
2) Pc = 1000$ Not sufficient
1) & 2) still not sufficient <=> Answer E.
Study Buddy Forum Moderator
User avatar
D
Joined: 04 Sep 2016
Posts: 1094
Location: India
WE: Engineering (Other)
Premium Member CAT Tests
In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 13 Apr 2018, 23:38
Bunuel niks18 amanvermagmat chetan2u

Quote:
]In 2003 Acme Computer priced its computers five times higher than its printers. What is the ratio of its gross revenue for computers and printers respectively in the year 2003?

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

(2) It sold each computer for $1000.


What is incorrect in below approach?

pc: price of computer
pp: price of printer
x: no of computers sold
y: no of printers sold

Q: pcx + ppy = ?
Given : pc= 5pp
St 1:
x/y = 3/2 In first half of year
x/y = 2/1 In second half of year

Two distinct eqs will give me x and y.
p: unknown. Insuff


St 2:
pc= 5pp = 1000

x and y: unknown.

Combining: we get all values of pc, pp,x and y.

Can you suggest if highlighted part is correct?
_________________

It's the journey that brings us happiness not the destination.

DS Forum Moderator
avatar
P
Joined: 22 Aug 2013
Posts: 1280
Location: India
Premium Member
Re: In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 14 Apr 2018, 11:18
adkikani wrote:
Bunuel niks18 amanvermagmat chetan2u

Quote:
]In 2003 Acme Computer priced its computers five times higher than its printers. What is the ratio of its gross revenue for computers and printers respectively in the year 2003?

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

(2) It sold each computer for $1000.


What is incorrect in below approach?

pc: price of computer
pp: price of printer
x: no of computers sold
y: no of printers sold

Q: pcx + ppy = ?
Given : pc= 5pp
St 1:
x/y = 3/2 In first half of year
x/y = 2/1 In second half of year

Two distinct eqs will give me x and y.
p: unknown. Insuff


St 2:
pc= 5pp = 1000

x and y: unknown.

Combining: we get all values of pc, pp,x and y.

Can you suggest if highlighted part is correct?


Hello

You have done: x/y = 3/2 in first half of the year
and x/y = 2/1 in second half of the year

Well first mistake is to assume that no of computers and printers sold will be x & y respectively for both halves of the year. We dont know whether the ratios of computers to printers sold will be same, so we CANNOT take these ratios for both halves of the year to be x/y only.

Secondly, you have done x/y = 3/2 and then immediately x/y = 2/1. How can x/y give two different values??

So basically, going by your method, what we can do is this: Assume ratio is x/y in first half and p/q in second half. So we have x/y = 3/2 and p/q = 2/1
Manager
Manager
avatar
D
Joined: 17 May 2015
Posts: 236
CAT Tests
In 2003 Acme Computer priced its computers five times higher [#permalink]

Show Tags

New post 20 Apr 2018, 07:37
adkikani wrote:
Bunuel niks18 amanvermagmat chetan2u

Quote:
]In 2003 Acme Computer priced its computers five times higher than its printers. What is the ratio of its gross revenue for computers and printers respectively in the year 2003?

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

(2) It sold each computer for $1000.


What is incorrect in below approach?

pc: price of computer
pp: price of printer
x: no of computers sold
y: no of printers sold

Q: pcx + ppy = ?
Given : pc= 5pp
St 1:
x/y = 3/2 In first half of year
x/y = 2/1 In second half of year

Two distinct eqs will give me x and y.
p: unknown. Insuff


St 2:
pc= 5pp = 1000

x and y: unknown.

Combining: we get all values of pc, pp,x and y.

Can you suggest if highlighted part is correct?


Thanks amanvermagmat, for the explanation.

Hi adkikani, Lets first understand the meaning of ratio.

How we obtained the ratio of any given numbers? For simplicity, let's focus on finding the ratio of two numbers.

Example: a = 48 and b = 36, a:b = 4:3 . Notice that, to find the ratio of two numbers we divide each number by the HCF of two numbers.

In the above example HCF(48,36) = 12

\(\frac{a}{b} = \frac{a}{12} : \frac{b}{12}\) = 4:3

We can peek another two numbers say, c = 28 and d = 21. The ratio of c and d is still 4:3, but HCF(c,d) is different.

So just by knowing the ratio, we can't conclude the exact value of the numbers.

From a given ratio, we can write all the numbers in one variable(in terms of HCF).
For example, if four numbers p,q,r, and s are in ratio of 4:5:8:9, then we can write: p = 4K, q = 5K, r = 8K, and s = 9K, Where K = HCF(p,q,r,s).

Some additional information will be required to get the exact values of the variables.

Quote:
(2) It sold each computer for $1000.


This information is redundant because we already know the ratio of the prices. Please note that we have to find the "ratio of its gross revenue for computers and printers respectively in the year 2003". Hence, the actual price of each computer and printer is not required.

Hope this helps.
In 2003 Acme Computer priced its computers five times higher   [#permalink] 20 Apr 2018, 07:37
Display posts from previous: Sort by

In 2003 Acme Computer priced its computers five times higher

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

Events & Promotions

PREV
NEXT


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®.