Author 
Message 
Intern
Joined: 20 May 2012
Posts: 20

Last year, a certain company began manufacturing product X [#permalink]
Show Tags
05 Jun 2012, 15:09
Question Stats:
61% (01:40) correct 39% (02:58) wrong based on 36 sessions
HideShow timer Statistics
Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5% of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21000 units of product X? (1) The company's total revenue from the sale of product X last year was greater than $110,000 (2) For each unit of product X sold last year, the company's revenue was $5 OPEN DISCUSSION OF THIS QUESTION IS HERE: lastyearacertaincompanybeganmanufacturingproductxa144141.html== Message from GMAT Club Team == This is not a quality discussion. It has been retired. If you would like to discuss this question please repost it in the respective forum. Thank you! To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative  Verbal Please note  we may remove posts that do not follow our posting guidelines. Thank you.
Official Answer and Stats are available only to registered users. Register/ Login.



Current Student
Joined: 29 Mar 2012
Posts: 317
Location: India
GMAT 1: 640 Q50 V26 GMAT 2: 660 Q50 V28 GMAT 3: 730 Q50 V38

Re: Last year, a certain company began manufacturing product X [#permalink]
Show Tags
05 Jun 2012, 22:09
Hi,
It is given that the total expense for the company = 100,000 + 5% of total revenue (let say, x) Also, the project made profit. Profit = Total revenue  expenses = x  (100000 + 0.05x) = 0.95x  100000 Since profit > 0 therefore, 0.95x  100000 > 0 ...(a)
using (1) The company's total revenue from the sale of product X last year was greater than $110,000, we can only check whether 0.95x  100000 is positive or not. Insufficient.
using (2) For each unit of product X sold last year, the company's revenue was $5, lets find the minimum number of units, number of units = total revenue/5 = x/5 or 0.95(x/5)  100000 >0 ....(from (a)) or x > 21052, thus x is greater than 21000. Sufficient.
Answer (B)
Regards,



Manager
Joined: 21 Jul 2017
Posts: 137
Location: India
Concentration: Social Entrepreneurship, Leadership
GPA: 4
WE: Project Management (Education)

Re: Last year, a certain company began manufacturing product X [#permalink]
Show Tags
14 Sep 2017, 10:57



Math Expert
Joined: 02 Sep 2009
Posts: 47033

Re: Last year, a certain company began manufacturing product X [#permalink]
Show Tags
14 Sep 2017, 21:59
Val1986 wrote: Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5% of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21000 units of product X?
(1) The company's total revenue from the sale of product X last year was greater than $110,000 (2) For each unit of product X sold last year, the company's revenue was $5
Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21,000 units of product X last year?Since the company made a profit, then R(100,000+0.05R)>0 > R>2,000,000/19=~105,000. (1) The company's total revenue from the sale of product X last year was greater than $110,000 > R>110,000. Its possible that company sold just one unit for say $120,000 or 120,000 units for $1. Not sufficient. (2) For each unit of product X sold last year, the company's revenue was $5. If total of n units were sold, then the total revenue would be $5n, so R=5n > 5n>2,000,000/19 > n>400,00/19>21,000. Sufficient. Answer: B. OPEN DISCUSSION OF THIS QUESTION IS HERE: lastyearacertaincompanybeganmanufacturingproductxa144141.html== Message from GMAT Club Team == This is not a quality discussion. It has been retired. If you would like to discuss this question please repost it in the respective forum. Thank you! To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative  Verbal Please note  we may remove posts that do not follow our posting guidelines. Thank you.
_________________
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




Re: Last year, a certain company began manufacturing product X
[#permalink]
14 Sep 2017, 21:59






