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09 Mar 2024, 10:32
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Dropdown 1: 4
Dropdown 2: 1000
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
54% (03:02) correct
46%
(03:15)
wrong
based on 1398
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For a manufacturing company in Thailand, the graph displays data on the cost of purchase from an outside supplier (P) versus the cost of in-house manufacture (M), in hundreds of Thai baht (B), for 13 different industrial parts. For each of the 13 parts, if M < P, the company will manufacture that part in-house. There is a fixed value, k, such that for any of the 13 parts, if k ≥ M ≥ P, the company will purchase the part from an outside supplier; if P ≥ k, the company will manufacture the part in-house, even if M ≥ P. The graph also displays 3 lines, one of which represents the maximum amount the company will pay to purchase a part from an outside supplier.
Use the drop-down menus to create the most accurate statements based on the information provided.
The graph displays data for industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier. For industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier, the maximum cost of purchase is
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Dropdown 1: 4
Dropdown 2: 1000
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02 May 2024, 05:00
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Hi pulkitrana
Thanks for posting your query.
Firstly, this question is an excellent example to highlight the importance of selecting only the relevant part from the question stem. Observe how the question introduces the variable k, yet nothing about it appears on the graph, nor is it used in the statement posed.
The key to differentiating between relevant and irrelevant parts here lies in thoroughly reading and understanding the question statement. So, let us try and TRANSLATE both sentences one by one.
Statement 1:
The graph displays data for ______ industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier.
This tests our basic understanding of reading a graph. The horizontal axis represents the cost of purchase from an outside supplier (P) and the vertical axis represents the cost of in-house manufacture (M).
Statement 2:
For industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier, the maximum cost of purchase is ______.
This one is a bit trickier and requires careful TRANSLATION to understand what is being asked.
So, the statement wants to know that for all those parts for which M > P (that means the 4 points that we found in the previous statement), what should be the MAXIMUM COST OF PURCHASE?
Regards,
Aditi
Quant Expert, e-GMAT
Thanks for posting your query.
Firstly, this question is an excellent example to highlight the importance of selecting only the relevant part from the question stem. Observe how the question introduces the variable k, yet nothing about it appears on the graph, nor is it used in the statement posed.
The key to differentiating between relevant and irrelevant parts here lies in thoroughly reading and understanding the question statement. So, let us try and TRANSLATE both sentences one by one.
Statement 1:
The graph displays data for ______ industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier.
This tests our basic understanding of reading a graph. The horizontal axis represents the cost of purchase from an outside supplier (P) and the vertical axis represents the cost of in-house manufacture (M).
- Now, the basic understanding tells us that the line passing from the origin and dividing the quadrant into two equal parts simply represents all data points for which the horizontal axis value is equal to the vertical axis value.
- That means Line B here represents all those points for which M = P.
- And we want the count of those points for which M > P.
- Thus, all the points above line B are the points under consideration.
- So, how many such points are there? FOUR, right?
- And that's it! We are done with this part.
Statement 2:
For industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier, the maximum cost of purchase is ______.
This one is a bit trickier and requires careful TRANSLATION to understand what is being asked.
So, the statement wants to know that for all those parts for which M > P (that means the 4 points that we found in the previous statement), what should be the MAXIMUM COST OF PURCHASE?
- Observe that we are not directly asked for the value of M or P here.
- This requires the information defined in the question stem. Remember that we are provided with the information that "if k ≥ M ≥ P, the company will purchase the part from an outside supplier"
- That means, for all those parts for which M ≥ P, the cost of purchase will be P and NOT M.
- So, we just need to check, out of the four data points above line B, which one has the maximum value of P. And that value of P is the answer.
- So, here, the maximum value of P corresponds to the rightmost point ABOVE line B.
- And as can been observed from the graph, the P value for that point is 1000.
- So, we just need to check, out of the four data points above line B, which one has the maximum value of P. And that value of P is the answer.
- That means, for all those parts for which M ≥ P, the cost of purchase will be P and NOT M.
- This requires the information defined in the question stem. Remember that we are provided with the information that "if k ≥ M ≥ P, the company will purchase the part from an outside supplier"
Regards,
Aditi
Quant Expert, e-GMAT
30 Apr 2024, 06:10
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akshatkg
Do not get overwhelmed with the data. Quickly scan the para for removing jargon.
When you read the question, you should realize that they are straightforward.
There is a vertical axis giving in house costing and a horizontal axis giving cost of purchase. Finally you should know that the line A gives you cost where both in house cost and purchase cost is same.
The graph displays data for __1__ industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier. For industrial parts for which the cost of in-house manufacture exceeds the cost of purchase from an outside supplier, the maximum cost of purchase is __2__ .
1. As we know that the line gives the points where both costs are equal. Anything above this line will give the in house cost more. There are FOUR such points, so answer is 4.
2. We are looking at points that are above the line A. As we are looking for highest cost of prchase amongst these, that is the highset value on horizontal axis, look for the rightmost point and its value on horizontal axis. It is 1000.
