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

[AAPL]

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

[jbryant62]

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

[Scott@TargetTestPrep]

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