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bacali: Master | Next Rank: 500 Posts; Posts: 245; Joined: Thu Aug 16, 2007 12:41 pm

by bacali » Tue Nov 25, 2008 8:06 am

A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for $30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio?

A. $2
B. $3
C. $4
D. $5
E. $6

oa: e

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Source: Beat The GMAT — Problem Solving | Tue Nov 25, 2008 8:06 am

gmataug08: Master | Next Rank: 500 Posts; Posts: 105; Joined: Sat May 17, 2008 8:12 pm; Thanked: 6 times

by gmataug08 » Tue Nov 25, 2008 8:24 am

cost = 1200 x 18 = 21600

selling price at 30 =
.6(1200) x 30 = 21600

hence the 40%sold at 15 is all profit.

so the average profit per radio = .4(1200) x 15 / 1200 = $6

that would be choice E

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