GRE Prep Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2509
Given Kudos: 1058
GPA: 3.39
A vendor sells specialty gift baskets at a price of $50.00 per basket,
[#permalink]
21 May 2021, 08:25
21 May 2021, 08:25
Expert Reply
00:00
Question Stats:
60% (01:58) correct
40% (03:09) wrong based on 5 sessions
Hide Show timer Statistics
A vendor sells specialty gift baskets at a price of $50.00 per basket, which represents a markup of 25% above the cost to produce each basket. The vendor prepared and delivered an order of 120 baskets to a customer. However, that customer returned 15 baskets and requested a partial refund. How much should the vendor refund per basket so that the vender makes a 20% profit on the initial cost of the 120 baskets?
A. $10
B. $16
C. $20
D. $34
E. $40
A. $10
B. $16
C. $20
D. $34
E. $40
Re: A vendor sells specialty gift baskets at a price of $50.00 per basket,
[#permalink]
22 May 2021, 04:30
22 May 2021, 04:30
1
SP of total 120 baskets is 50*120 = 6000
SP is marked 25% above Manufacturing Price(MP)
So MP is 50/1.25 = 40
Cost of making 120 baskets is 120*40 = 4800
Profit on entire transaction after refund is 20% of 4800 = 960
So the SP of baskets after refund should be 4800+960 = 5760
Refund to be given = 6000-5760 = 240
Refund/basket = 240/15 = 16
SP is marked 25% above Manufacturing Price(MP)
So MP is 50/1.25 = 40
Cost of making 120 baskets is 120*40 = 4800
Profit on entire transaction after refund is 20% of 4800 = 960
So the SP of baskets after refund should be 4800+960 = 5760
Refund to be given = 6000-5760 = 240
Refund/basket = 240/15 = 16
gmatclubot
Re: A vendor sells specialty gift baskets at a price of $50.00 per basket, [#permalink]
22 May 2021, 04:30
Moderators:
