A grocer bought 10 dozen bottles of jam at $18 per dozen from the wholesale market. The grocer found This topic has expert replies Senior | Next Rank: 100 Posts Posts: 38 Joined: 19 Jul 2020 A grocer bought 10 dozen bottles of jam at$18 per dozen from the wholesale market. The grocer found

by Mikrislac » Sun Aug 02, 2020 3:55 pm

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A grocer bought 10 dozen bottles of jam at $18 per dozen from the wholesale market. The grocer found that 10 bottles were broken and had to be thrown away. At what price per bottle should he sell, so as to make a profit of 10%, if he also spent$24 on transportation costs?

A. $2.04 B.$2.25

C. $2.44 D.$2.50

E. $2.92 GMAT/MBA Expert GMAT Instructor Posts: 3007 Joined: 22 Aug 2016 Location: Grand Central / New York Thanked: 470 times Followed by:32 members Re: A grocer bought 10 dozen bottles of jam at$18 per dozen from the wholesale market. The grocer found

by [email protected] » Sun Aug 02, 2020 10:26 pm
Mikrislac wrote:
Sun Aug 02, 2020 3:55 pm
A grocer bought 10 dozen bottles of jam at $18 per dozen from the wholesale market. The grocer found that 10 bottles were broken and had to be thrown away. At what price per bottle should he sell, so as to make a profit of 10%, if he also spent$24 on transportation costs?

A. $2.04 B.$2.25

C. $2.44 D.$2.50

E. $2.92 Total cost of 10 dozen bottles, incl. of transportation cost = 180 + 24 =$204

Cost of 10 bottles = 10*18/12 = $15 No. of bottles remaining to be sold = 10*12 – 10 = 110 Say the selling price of per bottle =$x

Thus,

Percentage profit = [(110x – 204)/204]*100% = 10%

x = $2.04 Correct answer: A Hope this helps! -Jay _________________ Manhattan Review GMAT Prep Locations: GMAT Prep Denver | SAT Prep Miami | GMAT Prep Europe | TOEFL Prep Los Angeles | and many more... Schedule your free consultation with an experienced GMAT Prep Advisor! Click here. Senior | Next Rank: 100 Posts Posts: 38 Joined: 19 Jul 2020 Re: A grocer bought 10 dozen bottles of jam at$18 per dozen from the wholesale market. The grocer found

by Mikrislac » Mon Aug 03, 2020 10:12 am
The total cost price (CP) of the ten dozen bottles at $18 a bottle is equal to 10*$18 or $180. The transportation costs equal$24. So, the total CP = $180 +$24 = $204. Since the grocer earned a profit of 10%, this must mean that they earned a profit earned of$20.4 (10% of $204). So, the grocer's selling price (SP) would have been$204 + $20.4 or,$224.4.

Since the grocer lost 10 bottles with no earned profit on these bottles, there were only (120 - 10) = 110 bottles to be sold. Therefore, the grocer should sell each of the remaining bottles at $224.4/110 =$2.04 to earn a profit of 10%.