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Joined: 05 Jul 2019
Last visit: 04 Jan 2021
Posts: 71
Given Kudos: 15
Location: India
Concentration: Strategy, Healthcare
Schools: HEC '22 NUS '22 (D) Marshall '22 (D) ISB '21 (D)
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Difficulty:
55%
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Question Stats:
91% (02:29) correct
9%
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Two companies are competing with one another for a contract to provide work uniforms to a customer, which is a large global manufacturing business. Company A sells its uniforms for $25 per uniform, and Company B's price is $30 per uniform. Both companies sell their uniforms in lots of 5,000 each. The customer has considered ordering some uniforms from both companies, in order to test them out before committing to one company on an ongoing basis. The company wants to spend exactly $1,000,000 on the test purchase.
In the table below, identify the number of uniforms that the customer should buy from Company A and from Company B so that the customer spends exactly $1,000,000. Make only one selection in each column.
In the table below, identify the number of uniforms that the customer should buy from Company A and from Company B so that the customer spends exactly $1,000,000. Make only one selection in each column.
| Options | |
| Company A: 5,000 & Company B: 10,000 | |
| Company A: 10,000 & Company B: 15,000 | |
| Company A: 15,000 & Company B: 5,000 | |
| Company A: 10,000 & Company B: 25,000 | |
| Company A: 25,000 & Company B: 15,000 |
17 Feb 2020, 09:15
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A*25 + B*30 = 1000000
A = 10000 (10000/5000 = 2 lots of 5000), B= 25000(25000/5000 = 5 lots of 5000)
A is Number of uniforms from Company A
B is Number of uniforms from Company B
Posted from my mobile device
A = 10000 (10000/5000 = 2 lots of 5000), B= 25000(25000/5000 = 5 lots of 5000)
A is Number of uniforms from Company A
B is Number of uniforms from Company B
Posted from my mobile device
09 Aug 2022, 04:35
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Answer should be D. Company A: 10000----Company B: 25000
Let no. of lots from A be x
Let no. of lots from B be y
Each lot has 5000 qty. So,
Total qty from A = 5000x
Total qty from B = 5000y
Now, total price = qty of A * price of A + qty of B * price of B
100,000 = 5000x * 25 + 5000x * 30
On simplifying, we get
5x + 6y = 40
Also notice how total qty is mentioned in the answer options.
We can change them into lots. Divide each option by 5000 for easier calculation.
Then we get:
A. Company A: 1-----Company B: 2
B. Company A: 2----Company B: 3
C. Company A: 3-----Company B: 1
D. Company A: 2-----Company B: 5
E. Company A: 5-----Company B: 3
Now we can just plug in the values of x and y and check.
At option D, 5*2 + 6*5 = 10+30 = 40 which satisfies the equation.
Hence, option D should be the answer.
Let no. of lots from A be x
Let no. of lots from B be y
Each lot has 5000 qty. So,
Total qty from A = 5000x
Total qty from B = 5000y
Now, total price = qty of A * price of A + qty of B * price of B
100,000 = 5000x * 25 + 5000x * 30
On simplifying, we get
5x + 6y = 40
Also notice how total qty is mentioned in the answer options.
We can change them into lots. Divide each option by 5000 for easier calculation.
Then we get:
A. Company A: 1-----Company B: 2
B. Company A: 2----Company B: 3
C. Company A: 3-----Company B: 1
D. Company A: 2-----Company B: 5
E. Company A: 5-----Company B: 3
Now we can just plug in the values of x and y and check.
At option D, 5*2 + 6*5 = 10+30 = 40 which satisfies the equation.
Hence, option D should be the answer.
