M7MBA wrote:Jack gave 20% discount on the sale of 15 toys and generated revenue of 600$. He earned 25% profit on this sale. Next day he sold 20 toys without any discount. What is his gross profit in two days?
a) 240 $
b) 360 $
c) 480 $
d) 510 $
e) 550 $
First day:
$600 in revenue yields a profit of 25% = 1/4.
Implication:
The $600 in revenue is equal to 5/4 of the cost of 15 toys:
600 = (5/4)C
C = 480.
Thus:
Profit for the 15 toys on the first day = (revenue) - (cost) = 600-480 = 120.
Second day:
The $600 first-day revenue includes a discount of 20% = 1/5.
Implication:
$600 is equal to 4/5 of the normal revenue for 15 toys:
600 = (4/5)R
R = 750.
Normal profit for 15 toys = (normal revenue) - (cost of 15 toys) = 750-480 = 270.
Since 15 toys normally generate $270 in profit, the normal profit per toy = 270/15 = 18.
Thus, the normal profit yielded by 20 toys sold on the second day = 18*20 = 360.
Total profit for the two days = (first-day profit) + (second-day profit) = 120 + 360 = 480.
The correct answer is
C.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at
[email protected].
Student Review #1
Student Review #2
Student Review #3
