It costs a certain company $100 to buy each unit of X, $200 for each

Question

It costs a certain company $100 to buy each unit of X, $200 for each unit of Y, and $300 for each unit of Z. The company then sells each unit of X for $200, each unit of Y for $300, and each unit of Z for $400. There are no other costs or revenue associated with X, Y, or Z. The company wants to select one of the following goals to prioritize.

A. Buy and then sell 3 units of X, 5 units of Y, and 4 units of Z.

B. Buy and then sell 2 units of X, 2 units of Y, and 3 units of Z.

C. Buy and then sell 8 units of X, 1 unit of Y, and 1 unit of Z.

D. Buy and then sell 2 units of X, 4 units of Y, and 2 units of Z.

E. Buy and then sell 1 unit of X, 4 units of Y, and 5 units of Z.

Select the goal that the company should prioritize to minimize its total Cost for X, Y, and Z and the goal that the company should prioritize to maximize its total Gross profit for X, Y, and Z. Make only two selections, one in each column.

rocky620 · Answer

The cost for each Goal:

A. Buy and then sell 3 units of X, 5 units of Y, and 4 units of Z. = 300+1000+1200 = 2500
B. Buy and then sell 2 units of X, 2 units of Y, and 3 units of Z. = 200+400+900 = 1500
C. Buy and then sell 8 units of X, 1 unit of Y, and 1 unit of Z. = 800+200+300 = 1300
D. Buy and then sell 2 units of X, 4 units of Y, and 2 units of Z. = 200+800+600 = 1600
E. Buy and then sell 1 unit of X, 4 units of Y, and 5 units of Z. = 100+800+1500 = 2400

So, Goal C will have the minimum cost. 
 
  The Profit For Each Plan:  
Since the Profit on each type of product - X, Y, and Z - is constant, $100, we just need to check which Goal has maximum number of units (buy and sell)

A = 12 units
B = 7 Units
C = 10 Units
D = 8 Units
E = 10 Units

So, Goal A will yield maximum profit

Malar95 · Answer

Howdy!
Did this on my handy dandy white board to assist a friend. Hope it helps.

rmahe11 · Answer

If we apply common sense for cost we must realise that in order to cost less the value of Y and Z should be minimum because their factor is 2 and 3 , so Cost for C can automatically be min but for gross profit value of x , y and z should be maximum hence A overall.

EnglishAgast · Answer

This pattern has to be observed. Thank you!

bumpbot · Answer

Automated notice from GMAT Club BumpBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.

Cost	Gross profit
		(A)
		(B)
		(C)
		(D)
		(E)
		(F)

It costs a certain company $100 to buy each unit of X, $200 for each

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Two-part Analysis (TPA) Questions

It costs a certain company $100 to buy each unit of X, $200 for each

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards