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.
A manufacturer sells goods at $4 per unit to stockists after
[#permalink]
16 May 2019, 00:09
16 May 2019, 00:09
Expert Reply
00:00
Question Stats:
77% (00:58) correct
22% (01:10) wrong based on 18 sessions
Hide Show timer Statistics
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
Moderator
Joined: 02 Jan 2020
Status:GRE Quant Tutor
Posts: 1141
Given Kudos: 9
Location: India
Concentration: General Management
Schools: XLRI Jamshedpur, India - Class of 2014
GMAT 1: 700 Q51 V31
GPA: 2.8
WE:Engineering (Computer Software)
Re: A manufacturer sells goods at $4 per unit to stockists after
[#permalink]
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
Moderators:
