M7MBA wrote: ↑Sat Aug 01, 2020 6:06 am
A book store-bought copies of a new book by a popular author, in anticipation of robust sales. The store-bought 400 copies from their supplier, each copy at wholesale price \(W.\) The store sold the first 150 copies in the first week at 80% more than \(W,\) and then over the next month, sold a 100 more at 20% more than \(W.\) Finally, to clear shelf space, the store sold the remaining copies to a bargain retailer at 40% less than \(W.\) What was the bookstore’s net percent profit or loss on the entire lot of 400 books?
(A) 30% loss
(B) 10% loss
(C) 10% profit
(D) 20% profit
(E) 60% profit
[spoiler]OA=D[/spoiler]
Source: Magoosh
STRATEGY: Since the answer choices aren't in terms of the variable W, let's make matters easier for ourselves by assigning a convenient number to W. have
Let's say
W = $100
The store bought 400 copies from their supplier, each copy at wholesale price W ($100)
So, the total amount spent by the store = (400)(
$100) =
$40,000
The store sold the first 150 copies in the first week at 80% more than W.... (= 80% more than $100 = $180)
So, the
revenue for the first 150 copies = (150)($180) =
$27,000
..., and then over the next month, sold a 100 more at 20% more than W (= 20% more than $100 = $120)
So, the
revenue for the next 100 copies = (100)($120) =
$12,000
Finally, to clear shelf space, the store sold the remaining copies to a bargain retailer at 40% less than W (= 40% less than $100 = $60)
So, the
revenue for the last remaining 150 copies = (150)($60) =
$9,000
What was the bookstore’s net percent profit or loss on the entire lot of 400 books?
The store spent a total of
$40,000 purchasing the books.
The store's total revenue =
$27,000 +
$12,000 +
$9,000 =
$48,000
So, the store's profit =
$48,000 -
$40,000 =
$8,000
So, the net percent profit =
$8,000/
$40,000 = 8/40 = 1/5 = 20%
Answer: D
