The customer is planning to order more than enough syringes

[GMATSlayer]

I'd love any guidance you can provide on the below question. Thanks!

Question:
For each of the following statements, select Yes if the statement can be shown to be true using the information provided. Otherwise, select No.

Question #1 - On a per-use basis, calculated using the number of guaranteed uses, the syringes guaranteed for 30 injections are less expensive than the syringes guaranteed for 20 injections.

Question #2 - If the customer orders an additional 200 needles, the overall order price will be cheaper than if the customer only orders 1,200 pumps, 50 syringes, and 550 needles.

Question #3 - The customer is planning to order more than enough syringes for the planned number of needles.

My Answer for Question #3:
I got #1 and #2 correct, but got #3 wrong.

I selected "No" because the customer said to "Hold off on the syringe order" and therefore this statement was not shown to be true.

Answer Explanation:
Statement 3: Yes. The syringes are guaranteed for a minimum of 20 uses. The needles are "single-use." If she orders 50 syringes, they will be able to give a minimum of (50)(20) = 1,000 injections. There are more than enough syringes, then, to use up the 550 needles she plans to order.


Email #1
Email from account manager to customer

February 17, 9:33 a.m.

I received your order for 50 plastic syringes and 550 single-use needles (one per injection). Also, the portable infusion pumps are on back-order. I can get you 300 now but the other 900 won’t be available until March. In response to your question, the plastic syringes typically last for 30 to 40 injections; they are guaranteed to last for a minimum of 20 injections.

Finally, current prices are $20 per box of 50 syringes, $25 per box of 50 needles, and $175 per box of 10 infusion pump kits.

Email #2
Email from customer to account manager

February 17, 10:42 a.m.

I noticed that the price of the pumps is set to increase by 15% next month. Will we still receive this month’s price on the entire order, including the ones we receive next month? My boss is already upset about some of the price increases earlier this month. Do you offer any large-volume discounts? We’re ordering more than 1,000 pumps.

Hold off on the syringe order; my boss has found syringes that are guaranteed for at least 30 injections. They’re more expensive ($30 for a box of 20), but he likes the 30-injection guarantee. If we were able to get a volume discount, though, he might still be willing to give you the order.

Email #3
Email from account manager to customer

February 17, 1:28 p.m.

Pricing is guaranteed at the time of your order, even if the price increases before you receive the shipment. My supervisor agreed to a 5% discount for any orders of more than 1,000 units of a single product or a 10% discount on the whole order if you order a total of 2,000 units for all products combined. I can’t give you a discount on just the 50 syringes, but you already qualify for the 5% discount on the pumps.

[tim]

Before we help with this question, we need you to show some effort of your own. What did you try on this question? Where did you get stuck?

[GMATSlayer]

As mentioned above, I got #1 and #2 correct, but #3 wrong.

I selected "No" for #3 because the customer said to "Hold off on the syringe order" and therefore the statement was not shown to be true.

[tim]

the information we have indicates the customer is planning to order 50 syringes; the only uncertainty here is which company the order will be placed with..

[GMATSlayer]

the information we have indicates the customer is planning to order 50 syringes; the only uncertainty here is which company the order will be placed with..

Thanks for the reply. I suppose you're right, although the official answer explanation had me confused because it makes no reference to the possibility that the order could be placed with the other company. It might be valuable for others if your above explanation was added to the official answer explanation.

Additionally, this reasoning still gets a bit hairy when you consider the other company sells syringes in boxes of 20 (an order of 50 isn't possible). I guess we could assume they'll order either 40 or 60, either of which would be sufficient for the planned number of needles. In general, should we make these types of assumptions?

[tim]

you should definitely make the assumption that it's possible to order from another company, especially since the documentation indicates that will likely happen. and as long as they buy at least 50 from the other company, that will be sufficient as well..

[GMATSlayer]

and as long as they buy at least 50 from the other company, that will be sufficient as well..

That's the thing though...we don't know how many they would order from the other company. All we know is that they can't order 50 because syringes are sold in boxes of 20.

[tim]

we don't care how many they will eventually end up ordering, just how many they PLAN to buy..

[webereric17]

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[tim]

keep your spam off our boards!