A craftsman sold his identical handcrafted items at a profit

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pm; Followed by:23 members

A craftsman sold his identical handcrafted items at a profit

by BTGmoderatorDC » Sun May 12, 2019 4:27 am

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A craftsman sold his identical handcrafted items at a profit of 20 percent. Had he charged 20 percent more per item, his profit per item would have been $9.6 more. What price did he charge, in dollars, for each item?

A. 24
B. 28.8
C. 40
D. 48
E. 57.6

OA D

Source: e-GMAT

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Source: Beat The GMAT — Problem Solving | Sun May 12, 2019 4:27 am

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by Scott@TargetTestPrep » Tue May 14, 2019 6:22 pm

BTGmoderatorDC wrote:A craftsman sold his identical handcrafted items at a profit of 20 percent. Had he charged 20 percent more per item, his profit per item would have been $9.6 more. What price did he charge, in dollars, for each item?

A. 24
B. 28.8
C. 40
D. 48
E. 57.6

OA D

Source: e-GMAT

We can let r = revenue (or sale price) and c = cost.

Since profit = revenue - cost, his (original) profit would be (r - c). We are given that had the craftsman charged 20 percent more per item, his profit would have been $9.60 more. His new profit would be (1.2r - c), or (r - c + 9.6). Therefore:

1.2r - c = r - c + 9.6

0.2r = 9.6

2r = 96

r = 48

Answer: D

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