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29 Mar 2026, 00:08
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
85%
(hard)
Question Stats:
48% (04:09) correct
52%
(03:18)
wrong
based on 31
sessions
History
Date
Time
Result
Not Attempted Yet
Kiwi produces 2,000,000 tablets at a cost of $150 per tablet. Thirty percent of the tablets are sold to schools at a 40 percent discount off the list price. Of the remaining tablets, 20 percent are sold at a 60 dollar discount per tablet during the holidays and the rest are sold at the full list price. If Kiwi’s total profit from the sale of the tablets is $70,400,000, what is the list price of a tablet?
A. $220
B. $230
C. $235
D. $240
E. $250
A. $220
B. $230
C. $235
D. $240
E. $250
arushi118
Joined: 21 Jul 2024
Last visit: 24 Apr 2026
Posts: 266
Given Kudos: 894
Location: India
Concentration: Leadership, General Management
Schools: INSEAD Aug '26 LBS '26 Kellogg '26
GPA: 8.2/10
Products:
04 Apr 2026, 09:59
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Total = 2 *10^6
List Price = x
To Schools -> 0.6*(10^6) -- these are sold for 0.6x
During holidays -> 0.28*(10^6) -- these are sold for x-60
At full list price -> 1.12*(10^6) -- these are sold for x
(0.36x + 0.28(x-60) + 1.12x) - 300 = 70.4 (divided both sides by 10^6)
On solving -> x = $220 (A)
List Price = x
To Schools -> 0.6*(10^6) -- these are sold for 0.6x
During holidays -> 0.28*(10^6) -- these are sold for x-60
At full list price -> 1.12*(10^6) -- these are sold for x
(0.36x + 0.28(x-60) + 1.12x) - 300 = 70.4 (divided both sides by 10^6)
On solving -> x = $220 (A)
04 Apr 2026, 14:33
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The answer is A ($220). Let me walk through this one because the setup is where most people trip up.
1. Label the list price as x. Total tablets = 2,000,000. Total cost = 2,000,000 * $150 = $300,000,000.
2. Break out the three groups of tablets:
- Schools: 30% = 600,000 tablets sold at 40% off list price = 0.6x each
- Holiday group: 20% of the remaining 70% = 20% of 1,400,000 = 280,000 tablets sold at (x - 60)
- Full price: 80% of remaining 70% = 1,120,000 tablets sold at x
3. Set up the revenue equation:
Revenue = 600,000(0.6x) + 280,000(x - 60) + 1,120,000(x)
= 360,000x + 280,000x - 16,800,000 + 1,120,000x
= 1,760,000x - 16,800,000
4. Profit = Revenue - Cost = 70,400,000:
1,760,000x - 16,800,000 - 300,000,000 = 70,400,000
1,760,000x = 387,200,000
x = 220
The trap here is the second group. "20% of the remaining tablets" means 20% of the 70% that weren't sold to schools -- NOT 20% of all 2 million. A lot of people set up 20% of 2M there and get a wrong answer that points them toward B or C.
Answer: A ($220).
1. Label the list price as x. Total tablets = 2,000,000. Total cost = 2,000,000 * $150 = $300,000,000.
2. Break out the three groups of tablets:
- Schools: 30% = 600,000 tablets sold at 40% off list price = 0.6x each
- Holiday group: 20% of the remaining 70% = 20% of 1,400,000 = 280,000 tablets sold at (x - 60)
- Full price: 80% of remaining 70% = 1,120,000 tablets sold at x
3. Set up the revenue equation:
Revenue = 600,000(0.6x) + 280,000(x - 60) + 1,120,000(x)
= 360,000x + 280,000x - 16,800,000 + 1,120,000x
= 1,760,000x - 16,800,000
4. Profit = Revenue - Cost = 70,400,000:
1,760,000x - 16,800,000 - 300,000,000 = 70,400,000
1,760,000x = 387,200,000
x = 220
The trap here is the second group. "20% of the remaining tablets" means 20% of the 70% that weren't sold to schools -- NOT 20% of all 2 million. A lot of people set up 20% of 2M there and get a wrong answer that points them toward B or C.
Answer: A ($220).
