HumbleMe Posted May 23, 2009 Share Posted May 23, 2009 The total cost of producing item X is equal to the sum of item X's fixed cost and variable cost. If the variable cost of producing X decreased by 5% in January, by what percent did the total cost of producing item X change in January? (1) The fixed cost of producing item X increased by 13% in January. (2) Before the changes in January, the fixed cost of producing item X was 5 times the variable cost of producing item X. My question is: If change in fixed cost in not mentioned, should we assume it to be unchanged or not ? Quote Link to comment Share on other sites More sharing options...
Md. Minuddin Posted May 23, 2009 Share Posted May 23, 2009 The total cost of producing item X is equal to the sum of item X's fixed cost and variable cost. If the variable cost of producing X decreased by 5% in January, by what percent did the total cost of producing item X change in January? (1) The fixed cost of producing item X increased by 13% in January. (2) Before the changes in January, the fixed cost of producing item X was 5 times the variable cost of producing item X. My question is: If change in fixed cost in not mentioned, should we assume it to be unchanged or not ? Yap. Answer is C. I got it now. Quote Link to comment Share on other sites More sharing options...
HumbleMe Posted May 23, 2009 Author Share Posted May 23, 2009 Well, this question is taken from Manhattan CAT and their answer is C... claiming that information on fixed cost is needed. I hope, in real gmat, we don't have ambiguous questions like this. Quote Link to comment Share on other sites More sharing options...
abhishek_mumbai Posted May 23, 2009 Share Posted May 23, 2009 There should be no explicit assumptions in DS questions.. if change in fixed cost is not mentioned.. then it is missing data.. else they would mention that it is unchanged.. DS questions test the availability of sufficient data.. Quote Link to comment Share on other sites More sharing options...
avixorld Posted May 25, 2009 Share Posted May 25, 2009 Its C -- as we require both the stmt Quote Link to comment Share on other sites More sharing options...
mightyalworth Posted May 25, 2009 Share Posted May 25, 2009 C is right. Quote Link to comment Share on other sites More sharing options...
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