Whenever Bianca travels to Italy she brings back Gucci bags that she sells to her friends. The bags she buys in Italy she gets at a 60% discount to American prices. She sells the bags to her friends at a 25% higher price than what she paid for them. After one trip, she sells bags to her friends that would have $4000 in American Stores. What is Bianca's profit?
400
600
1600
2200
2400
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- VP_RedSoxFan
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Working backwards, we can calculate that the $4000 in "American" prices was purchased in Italy by Bianca at 60% off, so $1,600 (don't confuse the discount amount with the actual cost here).
The question says that Bianca sells them for 25% more than she paid, which would exactly equal her profit...25% of $1,600 = $400
Answer = [A]
Hope this helps, good luck. Still love the username, makes me chuckle...
The question says that Bianca sells them for 25% more than she paid, which would exactly equal her profit...25% of $1,600 = $400
Answer = [A]
Hope this helps, good luck. Still love the username, makes me chuckle...
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Note: We must assume that the question is asking about a single bag.imadummy wrote:Whenever Bianca travels to Italy she brings back Gucci bags that she sells to her friends. The bags she buys in Italy she gets at a 60% discount to American prices. She sells the bags to her friends at a 25% higher price than what she paid for them. After one trip, she sells bags to her friends that would have $4000 in American Stores. What is Bianca's profit?
400
600
1600
2200
2400
Since Bianca sold a bag that would have cost $4,000 in American stores, she actually paid 0.4 x 4,000 = $1,600 for the bag. She then sold the bag for 1.25 x 1600 = $2,000. Thus, she made a profit of $400.
Answer: A
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