A manufacturer produces items at a fixed monthly cost of $2000 plus a

Question

A manufacturer produces items at a fixed monthly cost of $2000 plus a variable cost of $100 per item. If he needs to sell N items to make a monthly profit of $50 per item, what is the value of N?

(1) Each item produced is sold for $200.
(2) If the fixed cost is not included in the cost and the manufacturer still sells N items at the same selling price, he will make a monthly profit of $100 per item.

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nick1816 · Answer

Statement1 -

Total Investment = 2000+100N

Revenue = 200N

200N - 2000- 100N = 50N

N=40

Sufficient

Statement 2-

Extra profit = 100N - 50N = 50N must be equal to fixed cost.

N=40

Sufficient

sambitspm · Answer

Let's say x is the Selling Price
Selling Price - Cost Price = Total Profit
x*N-(2000+100N) = 50 N

Statement 1=> x is given, so N can be calculated. SUFFICIENT

Statement 2 => Fixed cost is not there, profit is $100, so FIXED cost per item contributes $50.
2000/N = 50 SUFFICIENT

D

hacorus · Answer

A manufacturer produces items at a fixed monthly cost of $2000 plus a variable cost of $100 per item. If he needs to sell N items to make a monthly profit of $50 per item, what is the value of N?

So we have:
N*Price=2000+100*N+50*N = 2000+150N

Lets start with (1) Each item produced is sold for $200.
Straight forward: N*200=2000+150N, therefore 50N=2000 and N=40
So (1) is sufficient, A or D

Lets take (2) If the fixed cost is not included in the cost and the manufacturer still sells N items at the same selling price, he will make a monthly profit of $100 per item.
This means N*Price=100N+100N = 200N and if we take the first equation, we end up with 200N=2000+150N and 50N=2000
So (2) is sufficient

Correct answer is D

HoneyLemon · Answer

D  IMO
Total cost = 2000 + 100N 
selling price s 
Rev = N *s 
(N*S - (2000 -100 N )) / N = 50 
N ?

Statement -

S = 200 
200N - 2000- 100N = 50N

N can be found .

Sufficient

Statement 2-

(N*S - (2000 -100 N )) / N = 50 .
(NS - 100N)/ N= 100 .

N can be found . 
Sufficient

Hence D

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A manufacturer produces items at a fixed monthly cost of $2000 plus a

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GMAT Data Sufficiency (DS) Questions

A manufacturer produces items at a fixed monthly cost of $2000 plus a

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