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A book store bought copies of a new book by a popular author, in antic
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09 Apr 2022, 07:23
09 Apr 2022, 07:23
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A book store bought copies of a new book by a popular author, in anticipation of robust sales. The store bought 400 copies from their supplier, each copy at wholesale price W. The store sold the first 150 copies in the first week at 80% more than W, and then over the next month, sold a 100 more at 20% more than W. Finally, to clear shelf space, the store sold the remaining copies to a bargain retailer at 40% less than W. What was the bookstore’s net percent profit or loss on the entire lot of 400 books?
(A) 30% loss
(B) 10% loss
(C) 10% profit
(D) 20% profit
(E) 60% profit
(A) 30% loss
(B) 10% loss
(C) 10% profit
(D) 20% profit
(E) 60% profit
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Re: A book store bought copies of a new book by a popular author, in antic
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09 Apr 2022, 07:38
09 Apr 2022, 07:38
2
Carcass wrote:
A book store bought copies of a new book by a popular author, in anticipation of robust sales. The store bought 400 copies from their supplier, each copy at wholesale price W. The store sold the first 150 copies in the first week at 80% more than W, and then over the next month, sold a 100 more at 20% more than W. Finally, to clear shelf space, the store sold the remaining copies to a bargain retailer at 40% less than W. What was the bookstore’s net percent profit or loss on the entire lot of 400 books?
(A) 30% loss
(B) 10% loss
(C) 10% profit
(D) 20% profit
(E) 60% profit
(A) 30% loss
(B) 10% loss
(C) 10% profit
(D) 20% profit
(E) 60% profit
STRATEGY: Since the answer choices aren't in terms of the variable W, let's make matters easier for ourselves by assigning a convenient number to W.
Let's say W = $100
The store bought 400 copies from their supplier, each copy at wholesale price W ($100)
So, the total amount spent by the store = (400)($100) = $40,000
The store sold the first 150 copies in the first week at 80% more than W.... (= 80% more than $100 = $180)
So, the revenue for the first 150 copies = (150)($180) = $27,000
..., and then over the next month, sold a 100 more at 20% more than W (= 20% more than $100 = $120)
So, the revenue for the next 100 copies = (100)($120) = $12,000
Finally, to clear shelf space, the store sold the remaining copies to a bargain retailer at 40% less than W (= 40% less than $100 = $60)
So, the revenue for the last remaining 150 copies = (150)($60) = $9,000
What was the bookstore’s net percent profit or loss on the entire lot of 400 books?
The store spent a total of $40,000 purchasing the books.
The store's total revenue = $27,000 + $12,000 + $9,000 = $48,000
So, the store's profit = $48,000 - $40,000 = $8,000
So, the net percent profit = $8,000/$40,000 = 8/40 = 1/5 = 20%
Answer: D
gmatclubot
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09 Apr 2022, 07:38
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