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# Last month, all units of product X produced by a certain company sold

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Manager
Joined: 03 Oct 2016
Posts: 78
Concentration: Technology, General Management
WE: Information Technology (Computer Software)
Last month, all units of product X produced by a certain company sold  [#permalink]

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05 Oct 2016, 09:52
3
8
00:00

Difficulty:

95% (hard)

Question Stats:

30% (02:43) correct 70% (02:33) wrong based on 105 sessions

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Last month, all units of product X produced by a certain company sold out and the company's total cost were equal to \$90000 plus 10 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last month , was the unit price of product X sold greater than \$5 ?

(1) The company’s total costs of all units of X product sold were \$120,000.

(2) The number of all Units of product X sold last month is less than 20000.

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Re: Last month, all units of product X produced by a certain company sold  [#permalink]

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05 Oct 2016, 10:48
5
2
Rev-cost=profit
They key to solving this problem is knowing that a profit was made!
Cost was \$90,000 plus 10% of the revenue. Was each unit more than \$5?
1. The company’s total costs of all units of X product sold were \$120,000.
From statement one we get that 30,000 is 10% of the total revenue so the revenue is 300,000. This means that we have \$180,000 in profit but we have no idea about the units sold.
2. The number of all Units of product X sold last month is less than 20000.
Lets assume that the number of products sold last month was 20,000 and each unit cost \$5. By doing this we're maxing out the number of units possible to be sold. This means that we have \$100,000 in revenue. We know from the prompt that the cost is \$90,000 plus 10% of the revenue. So our costs is \$100,000. The prompt states that there was a profit, so we know that the price of the unit MUST be greater than \$5.

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Re: Last month, all units of product X produced by a certain company sold  [#permalink]

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27 Oct 2018, 20:01
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Re: Last month, all units of product X produced by a certain company sold   [#permalink] 27 Oct 2018, 20:01
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