Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company’s total expenses for manufacturing product X were equal to $100,000 plus 5 percent of the company’s total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21,000 units of product X last year?
1. The company’s total revenue from the sale of product X last year was greater than $110,000.
2. For each unit of product X sold last year, the company’s revenue was $5.
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are not sufficient.
Correct Answer: B
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You’ll find tons of practice questions, explanations for GMAT Official Guide questions, and strategies on our GMAT Question of the Day page.
Here are a few other extra challenging GMAT questions with in depth explanations:
Here’s a tough function question from the GMAT Prep tests 1 and 2:
And a very challenging word problem from the Official Guide. Almost no-one gets this one on the first try but there is a somewhat simple way through it:
Last Sunday a certain store sold copies of Newspaper A for $1.00 each and copies of Newspaper B for $1.25 each, and the store sold no other newspapers that day. If r percent of the store’s revenues from newspaper sales was from Newspaper A and if p percent of the newspapers that the store sold were copies of newspaper A, which of the following expresses r in terms of p?
Tanya’s letters from the GMAT Prep tests. This one often gets GMAT tutoring students caught up in a tangled net. With combinatorics it’s important to stay practical. We’ll take a look at how to do that in the explanation:
Tanya prepared 4 different letters to be sent to 4 different addresses. For each letter, she prepared an envelope with its correct address. If the 4 letters are to be put into the 4 envelopes at random, what is the probability that only 1 letter will be put into the envelope with its correct address?
Here’s an exponents puzzle that comes up a lot in GMAT tutoring sessions:
This is one of the most difficult questions in the GMAT universe. That said, there is a simple way to solve it that relies on a fundamental divisibility rule every GMAT studier should know:
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