BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Que: A merchant bought 2,400 fans for $30 each. He sold 60 percent of the fans for $40 each and the rest for $35......

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Elite Legendary Member
Posts: 3991
Joined: Fri Jul 24, 2015 2:28 am
Location: Las Vegas, USA
Thanked: 19 times
Followed by:37 members

Que: A merchant bought 2,400 fans for $30 each. He sold 60 percent of the fans for $40 each and the rest for $35......

by Max@Math Revolution » Sat Jan 09, 2021 9:18 pm

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

Que: A merchant bought 2,400 fans for $30 each. He sold 60 percent of the fans for $40 each and the rest for $35 each. What was the merchant’s average profit per fan?

(A) $6
(B) $8
(C) $9
(D) $10
(E) $12
Top
Source: — Problem Solving |
User avatar
Elite Legendary Member
Posts: 3991
Joined: Fri Jul 24, 2015 2:28 am
Location: Las Vegas, USA
Thanked: 19 times
Followed by:37 members

Re: Que: A merchant bought 2,400 fans for $30 each. He sold 60 percent of the fans for $40 each and the rest for $35....

by Max@Math Revolution » Mon Jan 11, 2021 9:16 pm
Solution: Cost price of 2,400 fans = $ (30 * 2400) = $72,000

Number of fans sold at $40 each = \(\frac{60}{100}\cdot2,400\ =\ 1,440\)

Thus, selling price of these 1,440 fans = $(1,440 * 40) = $57,600

Number of fans sold at $ 35 each = 2400 – 1440 = 960

Thus, selling of these 960 fans = $(960 * 35) = $33,600

Total selling price of 2,400 fans = $57,600 + $33, 600 = $91,200

Total profit: Selling price – Cost price = $91,200 - $72,000 = $19,200

Profit per fan: \(\frac{19,200}{2,400}\) = 8

Therefore, B is the correct answer.

Answer B
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8085
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

Re: Que: A merchant bought 2,400 fans for $30 each. He sold 60 percent of the fans for $40 each and the rest for $35....

by Scott@TargetTestPrep » Tue Jan 19, 2021 6:21 am
Max@Math Revolution wrote: ↑
Sat Jan 09, 2021 9:18 pm
 Que: A merchant bought 2,400 fans for $30 each. He sold 60 percent of the fans for $40 each and the rest for $35 each. What was the merchant’s average profit per fan?

(A) $6
(B) $8
(C) $9
(D) $10
(E) $12
Solution:

We can use 10 fans as the number of fans bought and sold, instead of 2,400 fans, the actual number of fans bought and sold.

Therefore, the cost is 30 x 10 = $300 and the revenue is 40 x 6 + 35 x 4 = 240 + 140 = $380. We see that the total profit is 380 - 300 = $80 and the average profit per fan is 80/10 = $8.

Answer: B

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage
Top
Post new topic Post Reply
• Page 1 of 1