A book store-bought copies of a new book by a popular author, in anticipation of robust sales. The store-bought 400 copi

M7MBA wrote: ↑
Sat Aug 01, 2020 6:06 am
A book store-bought copies of a new book by a popular author, in anticipation of robust sales. The store-bought 400 copies from their supplier, each copy at wholesale price $W.$ The store sold the first 150 copies in the first week at 80% more than $W,$ and then over the next month, sold a 100 more at 20% more than $W.$ Finally, to clear shelf space, the store sold the remaining copies to a bargain retailer at 40% less than $W.$ What was the bookstore’s net percent profit or loss on the entire lot of 400 books?

(A) 30% loss
(B) 10% loss
(C) 10% profit
(D) 20% profit
(E) 60% profit

[spoiler]OA=D[/spoiler]

Source: Magoosh

STRATEGY: Since the answer choices aren't in terms of the variable W, let's make matters easier for ourselves by assigning a convenient number to W. have
Let's say W = $100

The store bought 400 copies from their supplier, each copy at wholesale price W ($100)
So, the total amount spent by the store = (400)($100) = $40,000

The store sold the first 150 copies in the first week at 80% more than W.... (= 80% more than $100 = $180)
So, the revenue for the first 150 copies = (150)($180) = $27,000

..., and then over the next month, sold a 100 more at 20% more than W (= 20% more than $100 = $120)
So, the revenue for the next 100 copies = (100)($120) = $12,000

Finally, to clear shelf space, the store sold the remaining copies to a bargain retailer at 40% less than W (= 40% less than $100 = $60)
So, the revenue for the last remaining 150 copies = (150)($60) = $9,000

What was the bookstore’s net percent profit or loss on the entire lot of 400 books?
The store spent a total of $40,000 purchasing the books.
The store's total revenue = $27,000 + $12,000 + $9,000 = $48,000

So, the store's profit = $48,000 - $40,000 = $8,000

So, the net percent profit = $8,000/$40,000 = 8/40 = 1/5 = 20%

Answer: D

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