BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

A department store receives a shipment of 1,000 shirts, for

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 2632
Joined: Sun Oct 29, 2017 2:08 pmFollowed by: 2 members
by AAPL » Fri Aug 31, 2018 5:24 am

Timer

00:00

Answers

A

B

C

D

E

Stats

Difficulty—

Princeton Review

A department store receives a shipment of 1,000 shirts, for which it pays $9,000. The store sells the shirts at a price 80 percent above cost for one month, after which it reduces the price of the shirts to 20 percent above cost. The store sells 75 percent of the shirts during the first month and 50 percent of the remaining shirts afterward. How much gross income did sales of the shirts generate?

A. $10,000
B. $10,800
C. $12,150
D. $13,500
E. $16,200

OA D.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
Legendary Member
Posts: 2214
Joined: Fri Mar 02, 2018 2:22 pmFollowed by: 5 members

edited:

by deloitte247 » Sun Sep 02, 2018 12:08 am
Store receives 1000 shirts and pays $9000
$$1\ shirt=\frac{$9000}{1000}=$9$$

For 1 month, the store sells 80% above the cost.
Selling price of 1 shirt for 1 month = [80% of $9] + $9
$$=\left[\frac{80}{100}\cdot9\right]+9$$
$$=7.2+9$$
$$=$16.2$$
Thus, 75% of the shirts were sold in the first month.
$$i.e\ 75\%\ of\ 1000\ =\ \frac{75}{100}\cdot1000=750$$
$$So,\ 750shirts\ were\ sold\ for\ =\ $16.2\cdot750$$
$$=\ $12150$$
After this month, the store sells the shirt at 20% above the cost.
Selling price of 1 shirt now become = [20% of $9] + $9
$$\left[\frac{20}{100}\cdot$9\right]+9$$ $$ $1.8+$9= $10.8$$

50% of the remaining shirts were sold during this period.
Remaining shirt = 1000 - 750 =250
$$50\%\ of\ 250\ =\ \frac{50}{100}\cdot250\ =125shirts$$
125 shirts were sold for = $10.8 x 125 = $1.350

Therefore, Total gross income income = $12,150 + $1,350
$$=$13,500$$
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8136
Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members
Location: Los Angeles, CA
Thanked: 43 times

by Scott@TargetTestPrep » Tue Sep 11, 2018 4:17 pm
AAPL wrote:Princeton Review

A department store receives a shipment of 1,000 shirts, for which it pays $9,000. The store sells the shirts at a price 80 percent above cost for one month, after which it reduces the price of the shirts to 20 percent above cost. The store sells 75 percent of the shirts during the first month and 50 percent of the remaining shirts afterward. How much gross income did sales of the shirts generate?

A. $10,000
B. $10,800
C. $12,150
D. $13,500
E. $16,200
We are given that a department store receives a shipment of 1,000 shirts, for which it pays $9,000. Thus, the cost per shirt is 9 dollars.

Since the store sells the shirts at a price 80 percent above cost for one month, the selling price for that month is 1.8 x 9 = $16.20. Since 75 percent of the shirts, or 0.75 x 1,000 = 750 shirts, are sold during this month, the revenue earned is 750 x 16.2 = $12,150.

After that month, 50% of the remaining shirts, or 0.5 x 250 = 125 shirts, are sold at a cost of 1.2 x 9 = $10.80. The revenue earned from the sale of these shirts is 125 x 10.8 = $1,350.

Thus, the gross income earned was $12,150 + $1,350 = $13,500.

Answer: D

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

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

ImageImage
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1