## Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are

##### This topic has expert replies
Moderator
Posts: 7114
Joined: Thu Sep 07, 2017 4:43 pm
Followed by:23 members

### Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are

by BTGmoderatorDC » Thu Jan 05, 2023 9:52 pm

00:00

A

B

C

D

E

## Global Stats

Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are purchased at a 60 percent discount off American prices. She sells the bags to her friends at a price 25 percent higher than what she paid for them. After one trip, she sells bags to her friends that would have cost $4,000 in American stores. What is Bianca’s profit per bag? (A)$400
(B) $600 (C)$1,600
(D) $2,200 (E)$2,400

OA A

Source: Veritas Prep

### GMAT/MBA Expert

GMAT Instructor
Posts: 6810
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

### Re: Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are

by [email protected] » Wed Jan 11, 2023 9:39 am
BTGmoderatorDC wrote:
Thu Jan 05, 2023 9:52 pm
Whenever Bianca travels to Italy, she brings back Gucci bags to sell to her friends. The bags she buys in Italy are purchased at a 60 percent discount off American prices. She sells the bags to her friends at a price 25 percent higher than what she paid for them. After one trip, she sells bags to her friends that would have cost $4,000 in American stores. What is Bianca’s profit per bag? (A)$400
(B) $600 (C)$1,600
(D) $2,200 (E)$2,400

OA A

Source: Veritas Prep
Solution:

Note: We must assume that the question is asking about a single bag.

Since Bianca sold a bag that would have cost $4,000 in American stores, she actually paid 0.4 x 4,000 =$1,600 for the bag. She then sold the bag for 1.25 x 1600 = $2,000. Thus, she made a profit of$400.