In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each...

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AAPL: Moderator; Posts: 2636; Joined: Sun Oct 29, 2017 2:08 pmFollowed by: 2 members

by AAPL » Tue Feb 11, 2020 6:05 am

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In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each. If 1,000 of these tools were sold in 1995 for $40 each and the remaining 800 were sold in 1996 for $50 each, how many greater was the gross profit on the tools sold in 1996 than the gross profit on those sold in 1995?

A. $0
B. $6,000
C. $8,000
D. $32,000
E. $40,000

OA B

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Source: Beat The GMAT — Problem Solving | Tue Feb 11, 2020 6:05 am

jbryant62: Junior | Next Rank: 30 Posts; Posts: 22; Joined: Wed Nov 23, 2016 4:04 pm; Thanked: 1 times

Re: In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each...

by jbryant62 » Tue Feb 11, 2020 10:50 am

AAPL wrote: ↑
Tue Feb 11, 2020 6:05 am
GMAT Prep

In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each. If 1,000 of these tools were sold in 1995 for $40 each and the remaining 800 were sold in 1996 for $50 each, how many greater was the gross profit on the tools sold in 1996 than the gross profit on those sold in 1995?

A. $0
B. $6,000
C. $8,000
D. $32,000
E. $40,000

OA B

1000 tools sold in 1995 at 40= 40000
800 tools sold in 1996 at 50= 40000

tools were purchased for $30 each.
the 1000 tools in 95 cost 30000
the 800 tools sold in 96 cost 24000

profit is revenue minus cost.

1995 40000-30000=10000

1996 40000-24000=16000

16000-10000=6000

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8139; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

Re: In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each...

by Scott@TargetTestPrep » Mon Feb 17, 2020 3:29 am

AAPL wrote: ↑
Tue Feb 11, 2020 6:05 am
GMAT Prep

In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each. If 1,000 of these tools were sold in 1995 for $40 each and the remaining 800 were sold in 1996 for $50 each, how many greater was the gross profit on the tools sold in 1996 than the gross profit on those sold in 1995?

A. $0
B. $6,000
C. $8,000
D. $32,000
E. $40,000

OA B

We can create the expression:

(800 x 50 - 800 x 30) - (1000 x 40 - 1000 x 30)

800(50 - 30) - 1000(40 - 30)

16000 - 10000 = 6,000

Answer: B

Scott Woodbury-Stewart
Founder and CEO
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