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# A shipment of 1500 heads of cabbage, each of which was approximately

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Senior Manager
Joined: 10 Nov 2010
Posts: 268
Location: India
Concentration: Strategy, Operations
GMAT 1: 520 Q42 V19
GMAT 2: 540 Q44 V21
WE: Information Technology (Computer Software)
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Kudos [?]: 78 [0], given: 22

A shipment of 1500 heads of cabbage, each of which was approximately [#permalink]  10 Feb 2011, 22:16
00:00

Difficulty:

35% (medium)

Question Stats:

82% (02:39) correct 18% (01:43) wrong based on 22 sessions
A shipment of 1500 heads of cabbage, each of which was approximately the same size was purchased for $600.The day the shipment arrived 2/3 of the heads were sold, each at 25% above the cost per head.The following day the rest were sold at a price per head equal to 10% less than the price each head sold for the day before.what was the gross profit on this shipment? a)$100
b) $115 c)$125
d) $130 e)$135

[Reveal] Spoiler:
cost=600

2/3(1500)=1000

Gross profit =4630-600=4030

But this answer is wrong.I think the method I am using is correct.

Where is the problem?
Pls help
[Reveal] Spoiler: OA

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Joined: 20 Dec 2010
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Kudos [?]: 1057 [1] , given: 376

Re: A shipment of 1500 heads of cabbage, each of which was approximately [#permalink]  11 Feb 2011, 01:36
1
KUDOS
Quote:
cost=600

1500\quad head = \$600 1 head = \frac{600}{1500} 2/3(1500)=1000 cost of 1000 heads=2.5*1.25*1000=3130 cost of rest 500 heads=3(500)=1500 Gross profit =4630-600=4030 But this answer is wrong.I think the method I am using is correct. Where is the problem? Pls help I recommend one should use fractions to solve this one rather than converting it into decimals Sol: 1500 heads ->$600
1 head -> $600/1500 1 head ->$(2/5)

25% more of (2/5) -> 125/100 * 2/5 = $(1/2) He sold 2/3*1500 = 1000 heads for$(1/2) per head
Total revenue by selling 1000 heads = 1000 * 1/2 = $500 Heads left: 500 Cost per head: 90% of the previous price: 90/100 * 1/2 =$(9/20)
Total revenue by selling 500 heads = 9/20 * 500 = 225

Total revenue after selling 1500 cabbage heads - 225+500 = $725 Money spent on the purchase:$600

Profit = 725-600 = $125 Ans: "C" _________________ Senior Manager Joined: 10 Nov 2010 Posts: 268 Location: India Concentration: Strategy, Operations GMAT 1: 520 Q42 V19 GMAT 2: 540 Q44 V21 WE: Information Technology (Computer Software) Followers: 5 Kudos [?]: 78 [0], given: 22 Re: A shipment of 1500 heads of cabbage, each of which was approximately [#permalink] 12 Feb 2011, 12:23 fluke wrote: Quote: Total number of heads=1500 cost=600 Cost per head=1500/600=2.5; not correct 1500\quad head = \$600

2/3(1500)=1000

Gross profit =4630-600=4030

But this answer is wrong.I think the method I am using is correct.

Where is the problem?
Pls help

I recommend one should use fractions to solve this one rather than converting it into decimals

Sol:
1500 heads -> $600 1 head ->$600/1500
1 head -> $(2/5) 25% more of (2/5) -> 125/100 * 2/5 =$(1/2)

He sold 2/3*1500 = 1000 heads for $(1/2) per head Total revenue by selling 1000 heads = 1000 * 1/2 =$500

Cost per head: 90% of the previous price: 90/100 * 1/2 = $(9/20) Total revenue by selling 500 heads = 9/20 * 500 = 225 Total revenue after selling 1500 cabbage heads - 225+500 =$725
Money spent on the purchase: $600 Profit = 725-600 =$125

Ans: "C"

Thanks
I was wrong while calculating cost per head
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Joined: 16 Nov 2010
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Location: United States (IN)
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Kudos [?]: 330 [0], given: 36

Re: A shipment of 1500 heads of cabbage, each of which was approximately [#permalink]  13 Feb 2011, 03:29
1.25 * 2/3 * 1500 * 600/1500 - Day 1 Total SP

0.9 * 1.25 * 1/3 * 1500 * 600/1500 - Day 2 total SP

=> Total SP = 600/1500 * 1500 * 1.25 (2/3 + 0.9 * 1/3)

= 600 * 5/4 * (2 + 0.9)/3

= 3000 * 2.9/12 = 725

=> Profit = 725 - 600 = \$ 125
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Re: A shipment of 1500 heads of cabbage, each of which was approximately [#permalink]  02 Jan 2015, 10:28
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Re: A shipment of 1500 heads of cabbage, each of which was approximately   [#permalink] 02 Jan 2015, 10:28
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