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gross profit on the tools

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Manager
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Joined: 19 Nov 2007
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gross profit on the tools [#permalink] New post 12 Nov 2009, 01:29
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

75% (01:24) correct 25% (00:00) wrong based on 8 sessions
In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each. If 1,000 of these tools were sold in 1995 for $40 each and the remaining 800 were sold in 1996 for $50 each, how many greater was the gross profit on the tools sold in 1996 than the gross profit on those sold in 1995?

A. $0
B. $6,000
C. $8,000
D. $32,000
E. $40,000
Manager
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Joined: 10 Sep 2009
Posts: 119
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Kudos [?]: 16 [0], given: 10

Re: gross profit on the tools [#permalink] New post 12 Nov 2009, 01:33
Profit = Revenue - Charge


P(1995) = 40.1000 - 30.1000 = 10.000
P(1996) = 50.800 - 30.800 = 20.800 = 16.000

Ans is 6000$
Manager
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Joined: 13 Aug 2009
Posts: 204
Schools: Sloan '14 (S)
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Re: gross profit on the tools [#permalink] New post 12 Nov 2009, 01:51
The keyword here is "Gross Profit":

Gross Profit = (Selling Price - Original Price)*(# of Items Sold)

So lets figure out what the Gross Profit for 1995:

GP1995 = (40-30)*(1000) = 10000

And the Gross Profit for 1996:

GP1996 = (50-30)*(800) = 16000

So the difference would be:

16000-10000 = 6000

ANSWER: B. 6000
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Re: gross profit on the tools [#permalink] New post 01 May 2011, 21:51
profit '95 = 1000*40 - 1000*30= 10,000
profit '96 = 800 * 50 - 800 *30 = 16,000
Thus difference = 6000.B
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Re: gross profit on the tools   [#permalink] 01 May 2011, 21:51
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