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GMAT · Applied problem solving · TOPIC LESSON

Mixtures, costs and constrained optimization

Original GMAT Problem Solving instruction: reason from constraints, calculate efficiently without a calculator, and check the requested quantity.

GMAT45 min study guide8 indexed sections

BY THE END, YOU CAN

  • Explain and apply weighted mixtures and concentrations.
  • Explain and apply dilution and replacement.
  • Explain and apply cost-revenue-profit.
  • Explain and apply fixed and variable costs.
  • Explain and apply break-even relationships.
  • Explain and apply piecewise wages and prices.
  • Explain and apply optimization under integer constraints.

BEFORE YOU START

  • Percentages, weighted averages, linear equations and integer inequalities.

Original educational lesson. Work through the examples before revealing the practice answers. This original lesson supports current GMAT study through an editorial skill map. It does not reproduce official questions, predict exam content or guarantee a score.

LEARN THROUGH ORIGINAL PRACTICE

Original GMAT-style worked examples and practice

All passages, examples and exercises here are original. No official GMAC questions, choices or explanations are reproduced. This independent preparation resource is not affiliated with or endorsed by GMAC. GMAT is a trademark of the Graduate Management Admission Council.

01 / UNDERSTAND & APPLY

Conserve the amount of the ingredient

Convention for every solution-mixture example and practice in this lesson: concentration is ingredient volume divided by total solution volume, all volumes are additive, and pure water contributes zero ingredient. In removal-and-replacement problems, the mixture is thoroughly mixed before removal. These are stated mathematical assumptions for the exercises.

A concentration is ingredient amount divided by total mixture amount, using consistent units and a clearly stated percentage basis. When combining mixtures, add ingredient amounts and total amounts separately. The new concentration is their ratio, so it is a weighted average of the original concentrations.

Assume volumes are additive only when the mathematical model says so or supplies that convention. A mass percentage and a volume percentage cannot be combined without conversion information. With positive amounts of two distinct concentrations, the final concentration lies strictly between them.

ORIGINAL WORKED EXAMPLE

Apply the idea

Mix 10 litres of 20% solution with 15 litres of 40% solution, with additive volumes. What is the resulting concentration?

  1. Ingredient amounts are 10×0.20=2 litres and 15×0.40=6 litres.
  2. Total ingredient is 8 litres and total solution is 25 litres.
  3. Concentration is 8/25=32%.

Answer 32%.

ORIGINAL PRACTICE · 1

How many litres of 50% solution must be added to 12 litres of 20% solution to make a 30% solution, assuming additive volumes?

Reveal answer & reasoning

6 litres.

Let x be the added volume. Ingredient balance gives 2.4+0.5x=0.3(12+x), hence 0.2x=1.2 and x=6. Averaging 20% and 50% to get 35% would assume equal volumes, which are not given.

02 / UNDERSTAND & APPLY

Dilution preserves ingredient; replacement removes some

Adding pure solvent changes total volume but leaves ingredient amount unchanged. Removing a well-mixed sample removes both ingredient and solvent in the current concentration. After replacing that sample with pure solvent, the ingredient fraction is multiplied by the fraction of the original volume retained.

For repeated equal-volume replacements in a well-mixed tank, multiply retention factors; do not subtract the same original ingredient amount each time. The tank must be thoroughly mixed before each removal for the uniform-concentration model to apply.

ORIGINAL WORKED EXAMPLE

Apply the idea

A tank contains 20 litres of 30% solution. Five litres are removed after mixing and replaced with pure water. What is the new concentration?

  1. Initially the ingredient amount is 20×0.30=6 litres.
  2. Removing one quarter of the mixture removes one quarter of its ingredient, leaving 6×3/4=4.5 litres.
  3. The final volume is again 20 litres, so concentration is 4.5/20.

Answer 22.5%.

ORIGINAL PRACTICE · 1

Ten litres of 40% solution are diluted to 25% by adding water. How much water is added?

Reveal answer & reasoning

6 litres.

Ingredient stays at 4 litres. If water added is w, then 4/(10+w)=1/4, so total volume is 16 and w=6. Reducing the concentration by 15 percentage points does not mean adding 15% of the initial volume.

03 / UNDERSTAND & APPLY

Distinguish total revenue from profit

Revenue is money received from sales. Cost is money spent under the stated model. Profit=revenue−cost and can be negative, in which case it is a loss. If price per item is p and q items are sold, revenue is pq only when the price is constant for all those items.

Separate items produced from items sold if the scenario distinguishes them. Unsold production may still incur cost without generating revenue. A requested profit per item may use sold units or produced units as its denominator; read the definition.

ORIGINAL WORKED EXAMPLE

Apply the idea

A seller buys 40 items at $6 each and sells all of them at $9 each. What are revenue and profit?

  1. Revenue is 40×9=$360.
  2. Cost is 40×6=$240.
  3. Profit is 360−240=$120.

Answer Revenue $360; profit $120.

ORIGINAL PRACTICE · 1

A vendor buys 50 items at $4 each but sells only 40 at $7 each. Unsold items have no recovery value. What is profit?

Reveal answer & reasoning

$80.

Revenue is 40×7=280; cost includes all 50 purchased items, 50×4=200. Profit is 80. Using only the cost of sold items would ignore the $40 spent on unsold stock.

04 / UNDERSTAND & APPLY

Fixed and variable costs create an affine model

A fixed cost does not change with output over the range specified. A variable cost per unit contributes vq for q units. Total cost is F+vq and profit at constant selling price p is (p−v)q−F. The contribution p−v pays toward the fixed cost before producing profit.

A fixed cost per batch is not necessarily a fixed cost for unlimited production: another batch may trigger another charge. Likewise, a per-unit cost may change at a threshold. Use the stated range and avoid extending a simple formula beyond it.

ORIGINAL WORKED EXAMPLE

Apply the idea

A workshop has a $180 setup cost and $7 material cost per item. It sells 50 items for $13 each. Find profit.

  1. Revenue is 13×50=$650.
  2. Total cost is 180+7×50=$530.
  3. Profit is 650−530.

Answer $120.

ORIGINAL PRACTICE · 1

With fixed cost $90 and variable cost $4 per unit, what is the average total cost per unit at 30 units?

Reveal answer & reasoning

$7.

Total cost is 90+4×30=210; average is 210/30=7. The variable cost $4 omits the fixed cost spread across the 30 units.

05 / UNDERSTAND & APPLY

Break-even equates revenue and cost

Break-even occurs when profit is zero. With positive contribution p−v, solve (p−v)q=F. If q must be an integer and the question asks for no loss or at least a specified profit, round the threshold upward and verify the neighboring integer.

If p≤v and F>0, no nonnegative output breaks even under the stated model. More sales cannot repair a negative contribution. “At least zero profit” includes exact break-even, while “positive profit” requires exceeding it.

ORIGINAL WORKED EXAMPLE

Apply the idea

A firm has fixed cost $250, variable cost $9 per unit and selling price $14. What is the smallest integer sales quantity yielding positive profit?

  1. Profit is (14−9)q−250=5q−250.
  2. Positive profit requires q>50.
  3. The smallest allowed integer is 51; at 50 profit is exactly zero.

Answer 51 units.

ORIGINAL PRACTICE · 1

Fixed cost is $100, price is $12 and variable cost is $5. What is the minimum integer quantity for no loss?

Reveal answer & reasoning

15 units.

Require 7q−100≥0, so q≥100/7=14 2/7. Round up to 15; 14 units produce −$2 and 15 produce $5. Rounding to the nearest integer would fail the constraint.

06 / UNDERSTAND & APPLY

Threshold rules change the expression

A piecewise rule uses different formulas in different ranges. Overtime commonly applies only to hours above a threshold; a quantity discount may apply only to additional units or to all units once a threshold is reached. These are different rules and must be stated explicitly.

For a proposed answer, check which range it belongs to before applying a formula. At boundaries, confirm whether equality belongs to the lower or upper range and whether there is a jump. Do not charge every hour at the overtime rate unless the rule says so.

ORIGINAL WORKED EXAMPLE

Apply the idea

A worker earns $18 per hour for the first 40 hours of a week and $27 per hour for each additional hour. What is pay for 46 hours?

  1. Regular pay is 40×18=$720.
  2. Overtime is 6×27=$162.
  3. Add the two components.

Answer $882.

ORIGINAL PRACTICE · 1

Printing costs $0.20 per page for the first 100 pages and $0.12 per additional page. What is the cost for 150 pages?

Reveal answer & reasoning

$26.

The first 100 cost $20; the next 50 cost $6. Total $26. Applying $0.12 to every page would incorrectly turn an incremental discount into an all-units discount.

07 / UNDERSTAND & APPLY

Feasible whole-number choices govern the optimum

An optimization problem asks for the largest or smallest achievable value subject to all constraints. Write the resource inequality, nonnegativity and integer restrictions. A continuous optimum may not be attainable with whole items. Test nearby feasible counts, not only a decimal solution.

A value-per-resource shortcut can suggest which item to favor, but leftovers and minimum quantities can change the optimum. For two small integer choices, enumerate the constrained variable or reason from the remainder. Prove that no untested option can do better.

ORIGINAL WORKED EXAMPLE

Apply the idea

A supplier buys small packs of 4 units for $7 or large packs of 7 units for $11. With a $40 budget, what is the maximum number of units obtainable?

  1. Let b be large packs. Since 4 large packs cost $44, b can be 0,1,2,3.
  2. For each b, buy as many small packs as possible: b=0 allows 5 small for 20 units; b=1 allows 4 small for 23; b=2 allows 2 small for 22; b=3 allows 1 small for 25.
  3. All possible large-pack counts were checked, so the maximum is proven.

Answer 25 units: 3 large packs and 1 small pack, costing $40.

ORIGINAL PRACTICE · 1

A venue sells adult tickets for $9 and child tickets for $5. A family must buy exactly 6 tickets, at least 2 adult tickets, and spend at most $42. What is the greatest possible number of adult tickets?

Reveal answer & reasoning

3.

With a adults, cost=9a+5(6−a)=30+4a. The budget requires a≤3, and a≥2. Thus 3 adults are feasible at $42; 4 would cost $46. Ignoring the fixed total of six tickets changes the problem.

08 / UNDERSTAND & APPLY

Check conservation, feasibility and the target

Mixture and business problems often share linear equations but conserve different things. A mixture conserves ingredient amount; a cost model totals specified expenses; a resource constraint caps what can be used. State the conserved or limited quantity before setting up algebra.

After solving, ask whether the answer lies within a sensible range and satisfies the actual question. A concentration between two positive source concentrations should lie between them; a claimed profit must account for all stated costs; an integer optimum needs a feasible construction.

ORIGINAL WORKED EXAMPLE

Apply the idea

Can mixing only positive amounts of 10% and 25% solutions produce a 30% solution under an additive-volume model?

  1. The ingredient proportion is a weighted average of 10% and 25%.
  2. With positive amounts, the weights are positive and sum to 1.
  3. The weighted average lies strictly between 10% and 25%, so 30% is impossible.

Answer No.

ORIGINAL PRACTICE · 1

A company sells at $8 per unit, incurs $9 variable cost per unit and has $50 fixed cost. Can any nonnegative sales quantity give no loss?

Reveal answer & reasoning

No.

Profit is (8−9)q−50=−q−50, which is negative for every q≥0. Solving for a negative break-even quantity is not a feasible sales plan; the sign of contribution already establishes impossibility.

KEEP THE BIG IDEAS

Quick revision

  • Conserve ingredient amounts before calculating mixture percentages.
  • Model replacement through the retained fraction after mixing.
  • Profit subtracts every stated cost, including fixed costs and unsold inventory.
  • Respect threshold definitions and whole-number feasibility in optimization.
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