• NEW! FREE Beat The GMAT Quizzes
Hundreds of Questions Highly Detailed Reporting Expert Explanations
• 7 CATs FREE!
If you earn 100 Forum Points

Engage in the Beat The GMAT forums to earn

A. 24
B. 28.8
C. 40
D. 48
E. 57.6

OA D

Source: e-GMAT

### GMAT/MBA Expert

GMAT Instructor
Joined
25 Apr 2015
Posted:
2624 messages
Followed by:
18 members
43
BTGmoderatorDC wrote:
A craftsman sold his identical handcrafted items at a profit of 20 percent. Had he charged 20 percent more per item, his profit per item would have been $9.6 more. What price did he charge, in dollars, for each item? A. 24 B. 28.8 C. 40 D. 48 E. 57.6 OA D Source: e-GMAT We can let r = revenue (or sale price) and c = cost. Since profit = revenue - cost, his (original) profit would be (r - c). We are given that had the craftsman charged 20 percent more per item, his profit would have been$9.60 more. His new profit would be (1.2r - c), or (r - c + 9.6). Therefore:

1.2r - c = r - c + 9.6

0.2r = 9.6

2r = 96

r = 48

_________________

Scott Woodbury-Stewart
Founder and CEO
scott@targettestprep.com

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

• 5 Day FREE Trial
Study Smarter, Not Harder

Available with Beat the GMAT members only code

• Free Practice Test & Review
How would you score if you took the GMAT

Available with Beat the GMAT members only code

• FREE GMAT Exam
Know how you'd score today for $0 Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

Available with Beat the GMAT members only code

• Free Veritas GMAT Class
Experience Lesson 1 Live Free

Available with Beat the GMAT members only code

• 1 Hour Free
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• 5-Day Free Trial
5-day free, full-access trial TTP Quant

Available with Beat the GMAT members only code

• Free Trial & Practice Exam
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• Magoosh
Study with Magoosh GMAT prep

Available with Beat the GMAT members only code

• Get 300+ Practice Questions

Available with Beat the GMAT members only code

### Top First Responders*

1 Ian Stewart 66 first replies
2 Brent@GMATPrepNow 53 first replies
3 Jay@ManhattanReview 51 first replies
4 GMATGuruNY 27 first replies
5 ceilidh.erickson 20 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

### Most Active Experts

1 Scott@TargetTestPrep

Target Test Prep

192 posts
2 Max@Math Revolution

Math Revolution

94 posts
3 Brent@GMATPrepNow

GMAT Prep Now Teacher

89 posts
4 Ian Stewart

GMATiX Teacher

72 posts
5 Rich.C@EMPOWERgma...

EMPOWERgmat

70 posts
See More Top Beat The GMAT Experts