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A company produces 450 units of a particular computer component every
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16 Nov 2010, 16:50
16 Nov 2010, 16:50
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A company produces 450 units of a particular computer component every month, at a production cost to the company of $110 per component, and sells all of the components by the end of each month. What is the minimum selling price per component that will guarantee that the yearly profit (revenue from sales minus production costs) will be at least $626,400 ?
A. 226
B. 230
C. 240
D. 260
E. 280
A. 226
B. 230
C. 240
D. 260
E. 280
Re: A company produces 450 units of a particular computer component every
[#permalink]
16 Nov 2010, 16:56
16 Nov 2010, 16:56
1
Kudos
I pick "A"
You need to set up an equation.
450*12(x-110)=626400
where x is a selling cost of one item
x-110, is a profit from one item
450 - number of items produced and sold per month
12 - is a number of month in a year
Simplifying the equation will lead to x-110=116, then x = 226
You need to set up an equation.
450*12(x-110)=626400
where x is a selling cost of one item
x-110, is a profit from one item
450 - number of items produced and sold per month
12 - is a number of month in a year
Simplifying the equation will lead to x-110=116, then x = 226
Re: A company produces 450 units of a particular computer component every
[#permalink]
18 Nov 2010, 16:56
18 Nov 2010, 16:56
simple but time consuming...
incurring profit 626400 is equal to incur profit 52200 per month.
total production cost = 450*110= 49500
Total selling price = 49500+52200=101700
Thus price per equipment= 101700/450 = 226
Answer:- A
incurring profit 626400 is equal to incur profit 52200 per month.
total production cost = 450*110= 49500
Total selling price = 49500+52200=101700
Thus price per equipment= 101700/450 = 226
Answer:- A
Re: A company produces 450 units of a particular computer component every
[#permalink]
22 Nov 2010, 19:29
22 Nov 2010, 19:29
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Kudos
Expert Reply
Sarang wrote:
simple but time consuming...
incurring profit 626400 is equal to incur profit 52200 per month.
total production cost = 450*110= 49500
Total selling price = 49500+52200=101700
Thus price per equipment= 101700/450 = 226
Answer:- A
incurring profit 626400 is equal to incur profit 52200 per month.
total production cost = 450*110= 49500
Total selling price = 49500+52200=101700
Thus price per equipment= 101700/450 = 226
Answer:- A
Hey Sarang,
That's the trick of GMAT. For many questions, there is a long calculation approach and a short cut.
Selling price per item = 110 + \(\frac{626400}{(12*450)}\)
Considering that all options are integers, you know you will end up canceling everything out to obtain 110 + 116 = 226
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Re: A company produces 450 units of a particular computer component every
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10 Jul 2015, 06:51
10 Jul 2015, 06:51
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Expert Reply
Please un-tag mixture problems and tag percent/interest
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tejhpamarthi wrote:
A company produces 450 units of a particular computer component every month, at a production cost to the company of $110 per component, and sells all of the components by the end of each month. What is the minimum selling price per component that will guarantee that the yearly profit (revenue from sales minus production costs) will be at least $626,400 ?
a)226 b)230 c)240 d)260 e)280
a)226 b)230 c)240 d)260 e)280
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Re: A company produces 450 units of a particular computer component every
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21 Mar 2018, 16:20
21 Mar 2018, 16:20
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Bookmarks
Expert Reply
tejhpamarthi wrote:
A company produces 450 units of a particular computer component every month, at a production cost to the company of $110 per component, and sells all of the components by the end of each month. What is the minimum selling price per component that will guarantee that the yearly profit (revenue from sales minus production costs) will be at least $626,400 ?
A. 226
B. 230
C. 240
D. 260
E. 280
A. 226
B. 230
C. 240
D. 260
E. 280
Since $626,400 is the minimum annual profit, thus $626,400/12 = $52,200 will be the minimum monthly profit. We can let n = the minimum selling price and create the inequality:
450n - 110(450) ≥ 52,200
450n - 49,500 ≥ 52,200
450n ≥ 101,700
n ≥ 226
Answer: A
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Re: A company produces 450 units of a particular computer component every
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05 Sep 2023, 17:50
05 Sep 2023, 17:50
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Re: A company produces 450 units of a particular computer component every [#permalink]
05 Sep 2023, 17:50
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