From the sale of sleeping bags, a retailer made a gross profit of 12 percent 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
Q/A-D
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profit and loss
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Ankitaverma
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We can plug in the answers, which represent the wholesale price.Ankitaverma wrote:From the sale of sleeping bags, a retailer made a gross profit of 12 percent 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
Q/A-D
When the correct wholesale price is increased by 12%, a selling price of $28 must be yielded.
Since 12% = 12/100 = 3/25, the correct answer choice must be a multiple of 25; otherwise, increasing the answer choice by 3/25 will not yield an integer value of 28.
Only D -- $25 -- is a multiple of 25.
The correct answer is D.
Answer choice D:
25 + (3/25)(25) = 25+3 = 28.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
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