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# Each month, a certain manufacturing company's total expenses

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Founder
Joined: 18 Apr 2015
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Each month, a certain manufacturing company's total expenses [#permalink]  18 Nov 2018, 03:14
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Question Stats:

42% (02:11) correct 57% (02:00) wrong based on 14 sessions

Each month, a certain manufacturing company's total expenses are equal to a fixed monthly expense plus a variable expense that is directly proportional to the number of units produced by the company during that month. If the company's total expenses for a month in which it produces 20,000 units are \$570,000, and the total expenses for a month in which it produces 25,000 units are \$705,000, what is the company's fixed monthly expense?

A. \$27,000

B. \$30,000

C. \$67,500

D. \$109,800

E. \$135,000
[Reveal] Spoiler: OA

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Director
Joined: 20 Apr 2016
Posts: 864
WE: Engineering (Energy and Utilities)
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Kudos [?]: 645 [1] , given: 142

Re: Each month, a certain manufacturing company's total expenses [#permalink]  25 Nov 2018, 12:12
1
KUDOS
Explanation:

Let F = fixed monthly expense

V = Variable expense.

As per 1st equation,

F + 20,000V = 570,000 ------------------(1)

and

F + 25,000V = 705,000 -------------------(2)

Solving equation (1) and (2)

V = 27.

Putting the value of V in equation 1,

F = 30,000, i.e Option B
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Re: Each month, a certain manufacturing company's total expenses   [#permalink] 25 Nov 2018, 12:12
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