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It costs a certain bicycle factory a fixed amount of $11,00

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GMAT Club Legend
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Joined: 07 Jun 2014
Posts: 4721
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
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It costs a certain bicycle factory a fixed amount of $11,00 [#permalink] New post 27 May 2018, 03:50
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Question Stats:

50% (01:07) correct 50% (00:00) wrong based on 2 sessions
It costs a certain bicycle factory a fixed amount of $11,000 to operate for one month, plus $300 for each bicycle produced during the month. Each of the bicycles sells for a retail price of $700. What is the minimum number of bicycles that the factory must sell in one month to make a profit?

(A) 26
(B) 27
(C) 28
(D) 29
(E) 30
[Reveal] Spoiler: OA

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Sandy
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GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jun 2014
Posts: 4721
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 91

Kudos [?]: 1625 [0], given: 389

CAT Tests
Re: It costs a certain bicycle factory a fixed amount of $11,00 [#permalink] New post 27 May 2018, 12:58
Expert's post
Explanation

The question asks how many bicycles the factory must sell to make a profit. One way of phrasing that is to say the profit must be greater than 0. Since Profit = Revenue – Cost, you can rewrite the equation to say:

Revenue – Cost > 0

Let b equal the number of bicycles sold. Each bike sells for $700, so the total revenue is 700b. The cost is equal to $11,000 plus $300 for every bicycle sold.

(700b) – (11,000 + 300b) > 0

Isolate b on one side of the inequality:

700b – 11,000 + 300b > 0
400b – 11,000 > 0
400b > 11,000
b > 27.5

If b must be greater than 27.5, then the factory needs to sell at least 28 bicycles to make a profit.
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Sandy
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Re: It costs a certain bicycle factory a fixed amount of $11,00   [#permalink] 27 May 2018, 12:58
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It costs a certain bicycle factory a fixed amount of $11,00

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