The wholesale cost of a certain coat was $90, but when 15 of the coats were purchased by a retailer, the cost was...

[AAPL]

GMAT Prep

The wholesale cost of a certain coat was $90, but when 15 of the coats were purchased by a retailer, the cost was reduced so that the total cost of the coats was $1,200. By how much was the wholesale cost of each coat reduced?

A. $6
B. $10
C. $20
D. $80
E. $150

OA B

[Brent@GMATPrepNow]

GMAT Prep

The wholesale cost of a certain coat was $90, but when 15 of the coats were purchased by a retailer, the cost was reduced so that the total cost of the coats was $1,200. By how much was the wholesale cost of each coat reduced?

A. $6
B. $10
C. $20
D. $80
E. $150

OA B

ORIGINAL cost per coat = $90

When 15 of the coats were purchased by a retailer, the cost was reduced so that the total cost of the coats was $1,200.
DISCOUNTED cost per coat = $1,200/15 = $80

By how much was the wholesale cost of each coat reduced?
Cost reduction (per coat) = $90 - $80 = $10

Answer: B

Cheers,
Brent

[Scott@TargetTestPrep]

GMAT Prep

The wholesale cost of a certain coat was $90, but when 15 of the coats were purchased by a retailer, the cost was reduced so that the total cost of the coats was $1,200. By how much was the wholesale cost of each coat reduced?

A. $6
B. $10
C. $20
D. $80
E. $150

OA B

Solution:

When 15 coats were purchased, the wholesale cost per coat was 1200/15 = $80, which is a 90 - 80 = $10 reduction in price from the cost of a single coat.

Answer: B