Bunuel 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 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 \(R-(100,000+0.05R)>0\) --> \(R>(\frac{2,000,000}{19} \approx 105,000)\).

(1) The company's total revenue from the sale of product X last year was greater than $110,000 --> \(R > 110,000\). It's 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 --> \(5n>\frac{2,000,000}{19}\) --> \(n>\frac{400,000}{19}>21,000\). Sufficient.

Answer: B.

Hi

Bunuel,

How can we shortcut following tedious calculation:

\(\frac{2,000,000}{19} \approx 105,000\)