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  1. #1
    Racing the GRE...
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    Another one

    A manufacturer can save x dollars per unit in production costs by overproducing in certain seasons. If storage costs for the excess are y dollars per unit per day (x>y), which of the following expresses the maximum number of days that n excess units can be stored before the storage costs exceed the savings on the excess units ?

    A x-y
    B (x-y)n
    C x/y
    D xn/y
    E x/yn

  2. #2
    Within my grasp! wydiwyg's Avatar
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    Ans E> x/yn
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  3. #3
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    Please detail your reasoning.

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    Within my grasp! wydiwyg's Avatar
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    A manufacturer can save x dollars per unit.

    So $x is the cost of 1 unit.
    For 1 day the storage cost for 1 unit is $y.
    i.e $y is the storage cost for 1 unit for 1 day.
    $ny is the storage cost of n units for 1 day.
    $1 is the storage cost of n units for 1/ny day.
    $x is the cost of of excess n units for x/ny days.

    Am i right. Please correct me if i am worng.
    Last edited by wydiwyg; 10-28-2005 at 06:46 PM.
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  5. #5
    Eager!
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    i think ans is C:x/y
    what is actual ans ???

    solution:
    for n units he got $nx money.
    but to store it, he has to give $y per unit per day ;so for n units he has to pay $ny per day . now for $nx he needs nx/ny days
    so ans is x/y.

    seema

  6. #6
    Racing the GRE...
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    C is the right one....indeed seemahesh

  7. #7
    Trying to make mom and pop proud
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    I agree with seemahesh. A very simple reasoning would be the following. Supposing the guy saves $10 a day per unit, and the storage cost is $2 per day (for each unit), then he can only store it for 5 days before the cost exceeds the benefit. Thus x/y = 10/2 = 5 days. Since this happens for each unit, n is irrelevant.

    Note: If one can see that n doesn´t matter early on, the problem is reduced to choosing between alternatives a) and c), which of course is much faster.

    D

  8. #8
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    should be ny/x, I think
    A manufacturer can save x dollars per unit in production costs by overproducing in certain seasons. If storage costs for the excess are y dollars per unit per day (x>y), which of the following expresses the maximum number of days that n excess units can be stored before the storage costs exceed the savings on the excess units
    Assume N is the max of that day, N*x>=ny, so N=ny/x

  9. #9
    An Urch Guru Pundit Swami Sage economicus's Avatar
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    I think it's C (x/y). Socialelite, I think that your answer forget that y represents the cost per unit.

    assume, that we save $10 per unit. And the cost is $5 PER UNIT. So if we have 3 products:

    10x3 (total cut) = 3x5xd
    d= [10x3/]/ [3x5] = 10/5 = x/y (2 days)

    if we use nx/y we get 3x10/5=6 ...but this mean that

    3x10=5x6.....but 5 is the cost per unit and not the cost of all units together.

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    C) x/y
    I am told that i talk in shorthand & then smudge it.

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