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A manufacturer sells goods at $4 per unit to stockists after
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16 May 2019, 00:09
16 May 2019, 00:09
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Question Stats:
76% (00:56) correct
23% (01:10) wrong based on 17 sessions
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A manufacturer sells goods at $4 per unit to stockists after a 10% profit. The stockists then sell the goods to distributors at 25% profit. The distributor adds a 20% profit on it and sells it to a retailer.
At what price (per unit) did the retailer purchase the goods?
(A) 0.6
(B) 6
(C) 6.3
(D) 6.6
(E) 7
At what price (per unit) did the retailer purchase the goods?
(A) 0.6
(B) 6
(C) 6.3
(D) 6.6
(E) 7
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Re: A manufacturer sells goods at $4 per unit to stockists after
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07 Jun 2020, 03:17
07 Jun 2020, 03:17
A manufacturer sells goods at $4 per unit to stockists after a 10% profit -> now the catch here is that $4 already includes the 10% profit which manufacturer has charged to the stockist
The stockists then sell the goods to distributors at 25% profit = Purchase price for stockist * (1 + \(\frac{25}{100}\)
= Purchase price for stockist * 1.25 = $4 *1.25 = $5
The distributor adds a 20% profit on it and sells it to a retailer = Purchase price * 1.2 = $5 *1.2 = $6
So, Answer will be B
Hope it helps!
The stockists then sell the goods to distributors at 25% profit = Purchase price for stockist * (1 + \(\frac{25}{100}\)
= Purchase price for stockist * 1.25 = $4 *1.25 = $5
The distributor adds a 20% profit on it and sells it to a retailer = Purchase price * 1.2 = $5 *1.2 = $6
So, Answer will be B
Hope it helps!
gmatclubot
Re: A manufacturer sells goods at $4 per unit to stockists after [#permalink]
07 Jun 2020, 03:17
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