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29 Oct 2021, 01:30
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71% (00:47) correct
29%
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The cost of production of a certain instrument increases with the number of units produced. What is the cost of production for 270 units?
(1) The cost of production for 300 units is $300.
(2) The cost of production is directly proportional to the number of units produced.
(1) The cost of production for 300 units is $300.
(2) The cost of production is directly proportional to the number of units produced.
Updated on: 29 Oct 2021, 08:00
Originally posted by CrackverbalGMAT on 29 Oct 2021, 01:45.
Last edited by CrackverbalGMAT on 29 Oct 2021, 08:00, edited 1 time in total.
Last edited by CrackverbalGMAT on 29 Oct 2021, 08:00, edited 1 time in total.
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The cost of production of a certain instrument increases with the number of units produced. The relationship between the cost and number of units is not clearly given in the question.
What is the cost of production for 270 units?
St(1): The cost of production for 300 units is $300
Since, we don't know the relationship between the cost and number of units , we cannot use the given data to find the cost for 270 units.Statement 1 is not sufficient.
Option A and D can be eliminated.
St(2):The cost of production is directly proportional to the number of units produced.
From St 2, we will get to know about the relation ship between the cost and the no of units. But we don't have data to find the cost for 270 units.
Statement 2 alone in insufficient.
But if you combine both statements, we know that the cost of production is directly proportional to the number of units produced and cost for 300 units is $300.
Cost = k * no of units, where k is a constant.
300 = k * 300
k=1.
i.e Cost of 270 units = 270$
Option C is the answer.
D.S
GMAT SME
What is the cost of production for 270 units?
St(1): The cost of production for 300 units is $300
Since, we don't know the relationship between the cost and number of units , we cannot use the given data to find the cost for 270 units.Statement 1 is not sufficient.
Option A and D can be eliminated.
St(2):The cost of production is directly proportional to the number of units produced.
From St 2, we will get to know about the relation ship between the cost and the no of units. But we don't have data to find the cost for 270 units.
Statement 2 alone in insufficient.
But if you combine both statements, we know that the cost of production is directly proportional to the number of units produced and cost for 300 units is $300.
Cost = k * no of units, where k is a constant.
300 = k * 300
k=1.
i.e Cost of 270 units = 270$
Option C is the answer.
D.S
GMAT SME
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29 Oct 2021, 03:56
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CrackverbalGMAT
I think there is a gap in your logic. Stem does not say that the relationship between the costs and the units is of direct proportionality. That bit of information is provided by the second statement. And we need that to reach to our conclusion. Thus, option C is the correct choice as it confirms that the proportionality is direct. If we apply this to statement 1, we get our proportionality constant as 1. And from this we can get the cost of 270 units.
