A book dealer buys used books for prices ranging

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BTGModeratorVI: Legendary Member; Posts: 1223; Joined: Sat Feb 15, 2020 2:23 pm; Followed by:1 members

A book dealer buys used books for prices ranging

by BTGModeratorVI » Mon May 25, 2020 7:35 am

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A book dealer buys used books for prices ranging from $0.75 to $1.50 and then sells them for prices ranging from $3.00 to $5.50. If the dealer were to sell 20 of these books, the minimum gross profit from this sale would be

A. $15
B. $30
C. $45
D. $50
E. $80

Answer: B
Source: GMAT prep

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Source: Beat The GMAT — Problem Solving | Mon May 25, 2020 7:35 am

GMAT/MBA Expert

Brent@GMATPrepNow: GMAT Instructor; Posts: 16207; Joined: Mon Dec 08, 2008 6:26 pm; Location: Vancouver, BC; Thanked: 5254 times; Followed by:1268 members; GMAT Score:770

Re: A book dealer buys used books for prices ranging

by Brent@GMATPrepNow » Thu May 28, 2020 9:18 am

BTGModeratorVI wrote: ↑
Mon May 25, 2020 7:35 am
A book dealer buys used books for prices ranging from $0.75 to $1.50 and then sells them for prices ranging from $3.00 to $5.50. If the dealer were to sell 20 of these books, the minimum gross profit from this sale would be

A. $15
B. $30
C. $45
D. $50
E. $80

Answer: B
Source: GMAT prep

Profit = (sale price) - (original purchase price)

In order to MINIMIZE the profit, we must MAXIMIZE the original purchase price, and MINIMIZE the sale price.

MAXIMIZE the original purchase price
The original purchase price ranges from $0.75 to $1.50
So the MAXIMUM original purchase price (per book) = $1.50

MINIMIZE the sale price
The sale price ranges from $3.00 to $5.50
So the MINIMUM sale price (per book) = $3.00

So the minimum profit (per book) = $3.00 - $1.50 = $1.50

If the dealer were to sell 20 of these books, the minimum gross profit from this sale would be
If the minimum profit (per ONE book) = $1.50
Then the minimum profit for TWENTY books = (20)($1.50) = $30

Answer: B

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8083; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

Re: A book dealer buys used books for prices ranging

by Scott@TargetTestPrep » Thu May 28, 2020 3:32 pm

BTGModeratorVI wrote: ↑
Mon May 25, 2020 7:35 am
A book dealer buys used books for prices ranging from $0.75 to $1.50 and then sells them for prices ranging from $3.00 to $5.50. If the dealer were to sell 20 of these books, the minimum gross profit from this sale would be

A. $15
B. $30
C. $45
D. $50
E. $80

Answer: B
Source: GMAT prep

Solution:

The minimum profit for each book occurs when he sells the $1.50 (cost) books for $3.00 each, making $1.50 on each book. Thus, the minimum gross profit for selling 20 such books is 20 x $1.50 = $30.

Answer: B

Scott Woodbury-Stewart
Founder and CEO
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