The total cost of producing item Y is equal to the sum of : GMAT Data Sufficiency (DS)
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# The total cost of producing item Y is equal to the sum of

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Intern
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The total cost of producing item Y is equal to the sum of [#permalink]

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08 Dec 2007, 11:12
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55% (hard)

Question Stats:

56% (03:20) correct 44% (01:21) wrong based on 67 sessions

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The total cost of producing item Y is equal to the sum of item Y's fixed cost and variable cost. If the variable cost of producing Y decreased by 10% in January, by what percent did the total cost of producing item Y change in January?

(1) The fixed cost of producing item Y increased by 12% in January.

(2) Before the changes in January, the fixed cost of producing item Y was 5 times the variable cost of producing item Y.

OPEN DISCUSSION OF THIS QUESTION IS HERE: the-total-cost-of-producing-item-x-is-equal-to-the-sum-of-97488.html
[Reveal] Spoiler: OA
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08 Dec 2007, 11:19
I get C.

1. We know how much each cost changed, but not how they relate to each other
2. We know how they relate, but know nothing about how fixed cost changed.

Together:

v + f = total cost
5v = f
so set the total cost to $6 1 + 5 = 6 .9v + 1.12f = new total .9(1) + (1.12)5 = new total .90 + 5.60 = 6.50 6.50/6 = ~1.08 so about an 8% increase in total cost Intern Joined: 13 Jun 2007 Posts: 48 Followers: 1 Kudos [?]: 8 [0], given: 0 ### Show Tags 08 Dec 2007, 11:43 I put B. Shouldn't B be enough to solve the question assuming that Fixed costs remain the same? Director Joined: 12 Jul 2007 Posts: 862 Followers: 16 Kudos [?]: 292 [0], given: 0 ### Show Tags 08 Dec 2007, 11:47 alexperi wrote: I put B. Shouldn't B be enough to solve the question assuming that Fixed costs remain the same? yeah, I think you must be right and A is just there to trip you up. If you just take the information from the question and then look at B you can figure it out. .9(1) + 5 =$5.90

1 - (5.90/6.00) = percent decrease in cost
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08 Dec 2007, 11:51
The official answer is actually C but i thought it was a trick.Maybe the question is not correct.
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08 Dec 2007, 11:54
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alexperi wrote:
The official answer is actually C but i thought it was a trick.Maybe the question is not correct.

We need some clarification on how the GMAT works in situations like this.

Given the information from the question only we can assume fixed costs remain the same and can solve the problem with the information from B.

If they tell us that fixed costs don't remain the same in one of the statements, do we have to count that as information for the problem?

I'd love to hear how you handle stuff like this. The set up here is terrible IMO.
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Re: The total cost of producing item Y is equal to the sum of [#permalink]

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22 Feb 2014, 23:15
Hello from the GMAT Club BumpBot!

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Re: The total cost of producing item Y is equal to the sum of [#permalink]

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23 Feb 2014, 01:36
OPEN DISCUSSION OF THIS QUESTION IS HERE: the-total-cost-of-producing-item-x-is-equal-to-the-sum-of-97488.html
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Re: The total cost of producing item Y is equal to the sum of   [#permalink] 23 Feb 2014, 01:36
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