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A grocery store purchased crates of 40 oranges each

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A grocery store purchased crates of 40 oranges each

by AAPL » Mon Apr 02, 2018 4:30 am

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A grocery store purchased crates of 40 oranges each for $5.00 per crate and then sold each orange for $0.20. What was the store's gross profit on each crate of oranges?

A. $3.00
B. $6.00
C. $8.00
D. $10.00
E. $13.00

The OA is A.

I get the solution as follows,

Price per crate is $5.

Revenue per crate = 0.2 * 40 = 8.

Profit per crate = 8 - 5 = 3. Option A.

Has anyone another approach to solve this PS question? Regards!
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by Jay@ManhattanReview » Mon Apr 02, 2018 10:48 pm
AAPL wrote:A grocery store purchased crates of 40 oranges each for $5.00 per crate and then sold each orange for $0.20. What was the store's gross profit on each crate of oranges?

A. $3.00
B. $6.00
C. $8.00
D. $10.00
E. $13.00

The OA is A.

I get the solution as follows,

Price per crate is $5.

Revenue per crate = 0.2 * 40 = 8.

Profit per crate = 8 - 5 = 3. Option A.

Has anyone another approach to solve this PS question? Regards!
There is nothing much in the question. What you did is all fine.

-Jay
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by [email protected] » Wed Apr 04, 2018 4:05 pm
Hi All,

We're told that a grocery store purchased crates of 40 oranges each for $5.00 per crate and then sold each orange for $0.20. We're asked for the store's gross PROFIT on each crate of oranges. The most direct approach for most Test Takers would be to figure out the total amount that the 40 oranges sold for and then subtract $5 from that total. There are other ways to handle the given information though - and you can do a bit of estimation and use the answer choices to your advantage to avoid having to do a lot of math.

If we purchase 40 oranges for $5, then we know that each orange costs MORE than 10 cents each. We're selling each orange for 20 cents each though, so the profit per orange would be LESS than 100%. By extension, the overall profit would have to be LESS than $5 (since that's what we spent to purchase the oranges in the first place). There's only one answer that's less than $5.....

Final Answer: A

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hi

by Jeff@TargetTestPrep » Thu Apr 05, 2018 4:20 pm
AAPL wrote:A grocery store purchased crates of 40 oranges each for $5.00 per crate and then sold each orange for $0.20. What was the store's gross profit on each crate of oranges?

A. $3.00
B. $6.00
C. $8.00
D. $10.00
E. $13.00
Each crate of oranges costs 5 dollars, and each crate is sold for 40 x 0.2 = 8 dollars, so the profit, per crate, is 3 dollars.

Answer: A

Jeffrey Miller
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by deloitte247 » Sun Apr 15, 2018 8:21 am
A crate of 40 oranges cost $5.00
Selling price per orange = $0.20
Therefore, total selling price of one crate of 40 oranges = 40 * $0.20 = $8.00
Then, Gross profit per crate = selling price per crate - cost price per crate
= $ (8-5) = $3 (option A)
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