Last month, all units of product X produced by a certain company sold

Question

Last month, all units of product X produced by a certain company sold out and the company's total cost were equal to $90000 plus 10 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last month , was the unit price of product X sold greater than $5 ?

(1) The company’s total costs of all units of X product sold were $120,000.

(2) The number of all Units of product X sold last month is less than 20000.

(1) The company’s total costs of all units of X product sold were $120,000.

(2) The number of all Units of product X sold last month is less than 20000.

Joc456 · Accepted Answer

Rev-cost=profit
They key to solving this problem is knowing that a profit was made!
Cost was $90,000 plus 10% of the revenue. Was each unit more than $5?
1. The company’s total costs of all units of X product sold were $120,000.
From statement one we get that 30,000 is 10% of the total revenue so the revenue is 300,000. This means that we have $180,000 in profit but we have no idea about the units sold.
2. The number of all Units of product X sold last month is less than 20000. 
Lets assume that the number of products sold last month was 20,000 and each unit cost $5. By doing this we're maxing out the number of units possible to be sold. This means that we have $100,000 in revenue. We know from the prompt that the cost is $90,000 plus 10% of the revenue. So our costs is $100,000. The prompt states that there was a profit, so we know that the price of the unit MUST be greater than $5.

B

ShankSouljaBoi · Answer

+1 q

elt x be cost per unit and y be the quantity sold. R be revenue = xy and C be cost of production

C= 90000 + 0.1xy. Profit has been made so

revenue > cost
xy> 90000+0.1xy

x>(10^5)/y

Restating question is x> 5 or 10^5/y > 5 or is y< 20000 ?

Straight B

minustark · Answer

Statement 1: Total cost = 120,000. So 10% of the company's total revenue = 30,000. Total revenue of the company is = 300,000. But since we don't know the number of units of product X, we cannot determine the unit price. NOT SUFFICIENT.
Statement 2: The number of all units of product X is less than 20,000. No information about the sales amount. NOT SUFFICIENT.
 Combining both: If no of units sold =20,000. Unit price = 300,000/20,000 = 15. Since the company sold less than 20,000 units. the unit price will be gmore than 15, which is obviously greater than unit price of $5. SUFFICIENT.
C is the answer

bumpbot · Answer

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Last month, all units of product X produced by a certain company sold

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Last month, all units of product X produced by a certain company sold

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