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# The function of the relationship between the cost (c) and the revenue

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Joined: 14 Nov 2016
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The function of the relationship between the cost (c) and the revenue [#permalink]

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23 Feb 2017, 16:49
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35% (medium)

Question Stats:

70% (01:15) correct 30% (01:22) wrong based on 53 sessions

The function of the relationship between the cost (c) and the revenue (x) is the equal to $$c(cost)= bx+a$$. If the revenue is increased by $1,000, by how many dollars did the cost increase? 1) a=10 2) b=20 [Reveal] Spoiler: OA _________________ "Be challenged at EVERY MOMENT." “Strength doesn’t come from what you can do. It comes from overcoming the things you once thought you couldn’t.” "Each stage of the journey is crucial to attaining new heights of knowledge." Rules for posting in verbal forum | Please DO NOT post short answer in your post! Senior Manager Joined: 19 Apr 2016 Posts: 275 Location: India GMAT 1: 570 Q48 V22 GMAT 2: 640 Q49 V28 GPA: 3.5 WE: Web Development (Computer Software) Re: The function of the relationship between the cost (c) and the revenue [#permalink] ### Show Tags 23 Feb 2017, 21:56 3 This post received KUDOS AustinKL wrote: The function of the relationship between the cost (c) and the revenue (x) is the equal to $$c(cost)= bx+a$$. If the revenue is increased by$1,000, by how many dollars did the cost increase?

1) a=10
2) b=20

St I
a=10, has no direct link with the revenue(x) --------Insufficient

St II
b=20,
so c(new_cost) = b(new_revenue)+a
=> c(new_cost) = b(x+1000)+a
=> c(new_cost) = bx +1000*b +a
=> c(new_cost) = 1000*b + bx +a
=> c(new_cost) = 1000*b + c(cost)
=> c(new_cost) = 1000*20 + c(cost)
=> c(new_cost) = 20000 + c(cost) ---------Sufficient

Hence option B is correct
Hit Kudos if you liked it
Re: The function of the relationship between the cost (c) and the revenue   [#permalink] 23 Feb 2017, 21:56
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# The function of the relationship between the cost (c) and the revenue

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