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

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Senior SC Moderator
Joined: 14 Nov 2016
Posts: 1324
Location: Malaysia
The function of the relationship between the cost (c) and the revenue  [#permalink]

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23 Feb 2017, 16:49
3
00:00

Difficulty:

35% (medium)

Question Stats:

64% (01:22) correct 36% (01:42) wrong based on 98 sessions

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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 _________________ "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! Advanced Search : https://gmatclub.com/forum/advanced-search/ ##### Most Helpful Community Reply Senior Manager Joined: 19 Apr 2016 Posts: 274 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 4 1 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
##### General Discussion
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Re: The function of the relationship between the cost (c) and the revenue  [#permalink]

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26 Jul 2018, 05:33
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: The function of the relationship between the cost (c) and the revenue &nbs [#permalink] 26 Jul 2018, 05:33
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