From the sale of sleeping bags, a retailer made a gross profit of 12% of the wholesale cost. If each sleeping bag was...

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BTGmoderatorLU: Moderator; Posts: 2650; Joined: Sun Oct 15, 2017 1:50 pmFollowed by: 6 members

by BTGmoderatorLU » Mon Jan 25, 2021 5:13 pm

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Source: GMAT Paper Tests

From the sale of sleeping bags, a retailer made a gross profit of 12% of the wholesale cost. If each sleeping bag was sold for $28, what was the wholesale cost per bag?

A. 3.00
B. 3.36
C. 24.64
D. 25.00
E. 31.36

The OA is D

Source: Beat The GMAT — Problem Solving | Mon Jan 25, 2021 5:13 pm

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Re: From the sale of sleeping bags, a retailer made a gross profit of 12% of the wholesale cost. If each sleeping bag wa

by Scott@TargetTestPrep » Fri Feb 05, 2021 3:57 pm

BTGmoderatorLU wrote: ↑
Mon Jan 25, 2021 5:13 pm
Source: GMAT Paper Tests

From the sale of sleeping bags, a retailer made a gross profit of 12% of the wholesale cost. If each sleeping bag was sold for $28, what was the wholesale cost per bag?

A. 3.00
B. 3.36
C. 24.64
D. 25.00
E. 31.36

The OA is D

Solution:

Since the retailer made a profit of 12% of the wholesale cost:

profit = 0.12(cost)

revenue - cost = 0.12(cost)

28 - cost = 0.12(cost)

28 = 1.12c

28/1.12 = c

25 = c = wholesale cost

Answer: D

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