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09 Jun 2018, 00:08
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25% (medium)

Question Stats:

77% (01:25) correct 23% (01:53) wrong based on 71 sessions

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It costs a certain bicycle factory a fixed amount of $11,000 to operate for one month, plus$300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of $700. What is the minimum number of bicycles that the factory must sell in one month to make a profit? (A) 26 (B) 27 (C) 28 (D) 29 (E) 30 _________________ CEO Status: GMATINSIGHT Tutor Joined: 08 Jul 2010 Posts: 2977 Location: India GMAT: INSIGHT Schools: Darden '21 WE: Education (Education) Re: It costs a certain bicycle factory a fixed amount of$11,000 to operat  [#permalink]

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09 Jun 2018, 01:31
2
Bunuel wrote:
It costs a certain bicycle factory a fixed amount of $11,000 to operate for one month, plus$300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of $700. What is the minimum number of bicycles that the factory must sell in one month to make a profit? (A) 26 (B) 27 (C) 28 (D) 29 (E) 30 Let, after x cycles produced and sold will cause some profit Total revenue = 700x Total Cost = 11000+300x For Profit, Revenue > Cost i.e. 700x > 11000 + 300x i.e. 400x > 11000 i.e. x > 27.5 i.e. x = 28 for minimum value of x Answer: option C _________________ Prosper!!! GMATinsight Bhoopendra Singh and Dr.Sushma Jha e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772 Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi http://www.GMATinsight.com/testimonials.html ACCESS FREE GMAT TESTS HERE:22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION examPAL Representative Joined: 07 Dec 2017 Posts: 1140 Re: It costs a certain bicycle factory a fixed amount of$11,000 to operat  [#permalink]

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09 Jun 2018, 03:52
Bunuel wrote:
It costs a certain bicycle factory a fixed amount of $11,000 to operate for one month, plus$300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of $700. What is the minimum number of bicycles that the factory must sell in one month to make a profit? (A) 26 (B) 27 (C) 28 (D) 29 (E) 30 As the calculation we're asked to do is relatively straightforward, we'll just do it. This is a Precise approach. If each bicycle costs$300 and sells for $700, the profit per bicycle is$400.
So:
400x > 11,000
4x > 110
2x > 55
x > 27.5

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It costs a certain bicycle factory a fixed amount of $11,000 to operat [#permalink] ### Show Tags 09 Jun 2018, 08:41 Bunuel wrote: It costs a certain bicycle factory a fixed amount of$11,000 to operate for one month, plus $300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of$700. What is the minimum number of bicycles that the factory must sell in one month to make a profit?

(A) 26
(B) 27
(C) 28
(D) 29
(E) 30

Given Total cost incurred per cycle per month = operating cost+production cost=11000+300*1
Total cost incurred towards 'n' nos of cycles per month=(11000+300n)$Given selling price per cycle=700$
So, Selling price of 'n' nos of cycles=700n$in order to make profit,$$(Selling price of 'n' nos of cycles-Total cost of 'n' nos of cycles per month)>0$$ Or, 700n-(11000+300n)>0 Or, n>27.5 Therefore, minimum value of n is 28. Ans. C _________________ Regards, PKN Rise above the storm, you will find the sunshine Manager Joined: 10 Jun 2018 Posts: 54 Location: Australia Concentration: Technology, General Management Schools: Other Schools GPA: 2.88 WE: Science (Pharmaceuticals and Biotech) Re: It costs a certain bicycle factory a fixed amount of$11,000 to operat  [#permalink]

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10 Jun 2018, 04:29
As per the others, it's 400x > 11000, and thus x > 11000/400 (because x is positive). The reasoning is because the total revenue must be greater than total costs.

So 700x > 300x + 11000. Since x is positive, we can simplify that to 700x - 300x > 11000; i.e. 400x > 11000 as above.
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Re: It costs a certain bicycle factory a fixed amount of $11,000 to operat [#permalink] ### Show Tags 27 Mar 2019, 10:47 Bunuel wrote: It costs a certain bicycle factory a fixed amount of$11,000 to operate for one month, plus $300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of$700. What is the minimum number of bicycles that the factory must sell in one month to make a profit?

(A) 26
(B) 27
(C) 28
(D) 29
(E) 30

equate given info
11000+300n-700n=0 ' this shall be break even point where expense = revenue"
so
solve for n
we get
n=27.5 ~ 28
IMO C
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Re: It costs a certain bicycle factory a fixed amount of $11,000 to operat [#permalink] ### Show Tags 02 Apr 2019, 19:07 Bunuel wrote: It costs a certain bicycle factory a fixed amount of$11,000 to operate for one month, plus $300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of$700. What is the minimum number of bicycles that the factory must sell in one month to make a profit?

(A) 26
(B) 27
(C) 28
(D) 29
(E) 30

We can create the following inequality:

700n > 11,000 + 300n

400n > 11,000

n = 11,000/400 = 110/4 = 55/2 = 27.5

So 28 bicycles must be produced.

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