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Bradley Metalworks was founded in 1950. This company produces a variety of steel products for home and industrial use. Bradley buys raw iron from industries that extract iron from ore. Throughout its operation, Bradley has adjusted its prices to make, on average, about $500 of profit through every ton of raw iron it transforms into part of a finished steel product. Bradley Metalworks buys 6,000 tons of raw iron each year for each factory it has in existence. It started with one factory in 1950, and added a new factory at the beginning of each of the following years: 1962, 1972, 1979, 1985, 1989, 1992, 1995, and 1998. Starting in the year 2000, it opened a new factory at the beginning of every new year. Every year of its operation, Bradley Metalworks has been successful as a business, insofar as it has been able to use up all the raw iron it buys in steel products that it has been able to sell at its desired price.
Bradley Metalworks can buy raw iron from three manufacturers: Vulcan Incorporated, Ferric Industries, and Hematitic Suppliers. The first two were in existence from before the first year of Bradley Metalworks. Vulcan Incorporated closed in 1990, but the other two are still in operation. Hematitic Suppliers began business in 1965.
Bradley Metalworks can buy raw iron from three manufacturers: Vulcan Incorporated, Ferric Industries, and Hematitic Suppliers. The first two were in existence from before the first year of Bradley Metalworks. Vulcan Incorporated closed in 1990, but the other two are still in operation. Hematitic Suppliers began business in 1965.
If Bradley Metalworks always bought raw iron at the lowest available price, it would have bought at least some raw iron from Hematitic in each year of the latter's existence.: True
The first year in which Bradley Metalworks achieved a profit of $24,000,000 was 1998.: False
In 2005, a switch from Hematitic to Ferric would have cost Bradley Metalworks more than $150,000 in what it paid for raw iron.: False
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
56% (04:09) correct
44%
(03:47)
wrong
based on 1360
sessions
History
Date
Time
Result
Not Attempted Yet
1. For the following statements, if we can conclude the statement is true based on the information provided, then respond True. Otherwise, respond False.
| True | False | |
| If Bradley Metalworks always bought raw iron at the lowest available price, it would have bought at least some raw iron from Hematitic in each year of the latter's existence. | ||
| The first year in which Bradley Metalworks achieved a profit of $24,000,000 was 1998. | ||
| In 2005, a switch from Hematitic to Ferric would have cost Bradley Metalworks more than $150,000 in what it paid for raw iron. |
ShowHide Answer
Official Answer
If Bradley Metalworks always bought raw iron at the lowest available price, it would have bought at least some raw iron from Hematitic in each year of the latter's existence.: True
The first year in which Bradley Metalworks achieved a profit of $24,000,000 was 1998.: False
In 2005, a switch from Hematitic to Ferric would have cost Bradley Metalworks more than $150,000 in what it paid for raw iron.: False
$720,000
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
76% (00:57) correct
24%
(00:59)
wrong
based on 1725
sessions
History
Date
Time
Result
Not Attempted Yet
2. In 1980, Bradley Metalworks bought all raw iron from Vulcan Industries. How much did Bradley spend that year in purchasing this raw iron?
| $540,000 | |
| $720,000 | |
| $900,000 | |
| $1,800,000 | |
| $3,600,000 |
ShowHide Answer
Official Answer
$720,000
Data Insights (DI) Butler 2023-24 [Question #215, Date: Jan-24-2024] [Click here for Details]
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Apr 02, 2024 9:46 am
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The number of Bradley factories
1950: 1
1962: 2
1972: 3
1979: 4
1985: 5
1989: 6
1992: 7
1995: 8
1998: 9
2000: 10
2001: 11
...
1. For the following statements, if we can conclude the statement is true based on the information provided, then respond True. Otherwise, respond False.
In 1980, Bradlye had 4 factories => need to buy 4 * 6,000 = 24,000
=> Total cost is 30 * 24,000 = 720,000 ($)
1950: 1
1962: 2
1972: 3
1979: 4
1985: 5
1989: 6
1992: 7
1995: 8
1998: 9
2000: 10
2001: 11
...
1. For the following statements, if we can conclude the statement is true based on the information provided, then respond True. Otherwise, respond False.
- If Bradley Metalworks always bought raw iron at the lowest available price, it would have bought at least some raw iron from Hematitic in each year of the latter's existence. => True
- Every year since 1965 when H started its operation, H's price is always the lowest except for 1990
- In 1990, however,
- V only sold 20k tons but Bradley 6 factories, meaning that it needs to buy 6 * 60k = 36k tons
- Therefor, Bradley needs to buy some from the one with 2nd lowest price, which is H
- The first year in which Bradley Metalworks achieved a profit of $24,000,000 was 1998. => False
- Profit of each factory is 500 * 6000 = 3,000,000 ($)
- The number of factories needed in order to achieve $24 million profit => \(\frac{24}{3} = 8\)
- 1995 is the first year when Bradley had 8 factories
- In 2005, a switch from Hematitic to Ferric would have cost Bradley Metalworks more than $150,000 in what it paid for raw iron. => False
- In 2005, Bradley had 15 factories => needing to buy 15 * 6000 = 90,000 tons
- In 2005, switching form H to F will cost Bradley $1 (=28-27) per ton
- => The total additional cost would be $90,000
In 1980, Bradlye had 4 factories => need to buy 4 * 6,000 = 24,000
=> Total cost is 30 * 24,000 = 720,000 ($)
General Discussion
