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A car dealer received a shipment of c new cars from the car

Expert replies
by BTGmoderatorAT » Sun Jan 21, 2018 6:38 am
A car dealer received a shipment of c new cars from the car company at a base price of p dollars per car. If the dealer was able to sell d cars at a profit for f dollars each, but had to sell the rest of the cars at a loss for m dollars each, which of the following represents the total profit generated on the sales of the automobiles?

A. df – cp – mp
B. df + f(d – m) – cp
C. d(f – m) + c(m – p)
D. cp – df – f(c – d)
E. df – m(c – d) – cm

I'm confused how to set up the formulas here. Can any experts assist?
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Source: — Problem Solving |

by Jay@ManhattanReview » Tue Jan 23, 2018 12:57 am
ardz24 wrote:A car dealer received a shipment of c new cars from the car company at a base price of p dollars per car. If the dealer was able to sell d cars at a profit for f dollars each, but had to sell the rest of the cars at a loss for m dollars each, which of the following represents the total profit generated on the sales of the automobiles?

A. df – cp – mp
B. df + f(d – m) – cp
C. d(f – m) + c(m – p)
D. cp – df – f(c – d)
E. df – m(c – d) – cm

I'm confused how to set up the formulas here. Can any experts assist?
Profit from the sale of d cars = $d(f –p)
Loss from the sale of the remaining cars (= c –d) cars = $(p – m)(c –d)

The total profit generated on the sales of the automobiles = Total Profit – Total Loss = $[d(f –p) – (p – m)(c –d)].

We see that there is no option as d(f –p) – (p – m)(c –d). Let's manipulate this and see which option would match.

$d(f –p) – (p – m)(c –d) = $[df – dp –pc + pd + mc – md] = $[df –pc + mc – md] = $[d(f –m) + c (m – p)]

The correct answer: C

Hope this helps!

-Jay
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by Jeff@TargetTestPrep » Wed Jan 24, 2018 9:42 am
ardz24 wrote:A car dealer received a shipment of c new cars from the car company at a base price of p dollars per car. If the dealer was able to sell d cars at a profit for f dollars each, but had to sell the rest of the cars at a loss for m dollars each, which of the following represents the total profit generated on the sales of the automobiles?

A. df – cp – mp
B. df + f(d – m) – cp
C. d(f – m) + c(m – p)
D. cp – df – f(c – d)
E. df – m(c – d) – cm
The total cost of the c cars was cp dollars.

The revenue made on d cars was df dollars, and the revenue made on the remaining (c - d) cars was (c - d)m = cm - dm dollars. Thus, the total revenue for the c cars was df + cm - dm dollars.

Therefore, the total profit made on selling the c cars was:

(df + cm - dm) - cp = d(f - m) + c(m - p) dollars

Answer: C

Jeffrey Miller
Head of GMAT Instruction
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