Acme Company currently produces 7,500 circuit board units per year. Br

Question

Acme Company currently produces 7,500 circuit board units per year. Brown Company currently produces 8,000 circuit board units per year. The numbers of units produced by both companies are increasing each year at a constant rate. If each of these companies continues to produce an increased number of units annually at its constant rate, in 10 years both companies will produce the same number of units for the first time. After the 10-year mark, Acme Company will produce more units per year than Brown Company.

In the table below, identify the rates of increase, in annual units produced, for each company that together meet the performance projections given above. Select only one option in each column.

In the table below, identify the rates of increase, in annual units produced, for each company that together meet the performance projections given above. Select only one option in each column.

GmatTest2026 · Answer

Solution:

No. of units produced by Acme company = 7500 circuit board units per year
 No. of units produced by Brown company= 8000 circuit board units per year

It is also given that the number of units produced by both companies is increasing each year at a constant rate and in 10 years both companies will produce the same number of units for the first time. However, Acme Company will produce more units per year than Brown Company.
 
Let's assume that the rate of Acme company is x and the rate of Brown company is Y.

So, we have the equation 1 7500 + 10X for Acme company and 8000 + 10Y and we can equate both the equation so, we get x- y = 50. Now, we can look for the values for both by following this equation and it is also mentioned that the rate of Acme is greater than Brown So, the value for X is 100 and Y is 50 as our answer.

Bismuth83 · Answer

1. The question asks us to  find the increasing rates for both of the companies .

2. Let companies Acme and Brown increase their units at rates x and y, respectively.

3. Since we know that after 10 years the number of units will be the same, we can put together the following equation:  7500 + 10x = 8000 + 10y .

4. No other information is given, so, let's simplify what we have.  7500 + 10x = 8000 + 10y \rightarrow 10x - 10y = 8000 - 7500 \rightarrow x - y = 50 .

5. Considering our answer choices, we can see that the only two rates that have a difference of 50 are 100 and 50.

6. Our answer will be:   Acme Company - 100 and Brown Company - 50  .

agrasan · Answer

This question can be solved simply using relative measure.

Current difference is 500, and we have 10 years to close this difference, i.e. (x - y)*10 = 500
By looking at options, we can get only one pair of x and y, x > y, otherwise Acme company will never surpass Brown company.

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Acme Company	Brown Company	Rate of increase (units per year)
		15
		25
		50
		100
		125
		140

Acme Company currently produces 7,500 circuit board units per year. Br

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Acme Company currently produces 7,500 circuit board units per year. Br

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