GRE
Exam
Numerical Ability
Arithmetic
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
Read Solution (Total 1)
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- (B) $ 30,000
If monthly fixed expense=x, and variable expense according to unit produced=y ,then
x + 20000y = 570000 ----(i) &
x + 25000y = 705000 ----(ii)
On solving, (i) & (ii), y=27, x=30000 - 9 years agoHelpfull: Yes(2) No(0)
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