Last visit was: 06 Oct 2024, 18:55 It is currently 06 Oct 2024, 18:55
Close
GMAT 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

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
SORT BY:
Date
Tags:
Show Tags
Hide Tags
Math Expert
Joined: 02 Sep 2009
Posts: 95949
Own Kudos [?]: 665790 [7]
Given Kudos: 87512
Send PM
Most Helpful Reply
GMAT Club Legend
GMAT Club Legend
Joined: 12 Sep 2015
Posts: 6797
Own Kudos [?]: 31560 [4]
Given Kudos: 799
Location: Canada
Send PM
General Discussion
GMAT Club Legend
GMAT Club Legend
Joined: 08 Jul 2010
Status:GMAT/GRE Tutor l Admission Consultant l On-Demand Course creator
Posts: 6059
Own Kudos [?]: 14256 [0]
Given Kudos: 125
Location: India
GMAT: QUANT+DI EXPERT
Schools: IIM (A) ISB '24
GMAT 1: 750 Q51 V41
WE:Education (Education)
Send PM
Senior Moderator - Masters Forum
Joined: 19 Jan 2020
Posts: 3120
Own Kudos [?]: 2854 [0]
Given Kudos: 1510
Location: India
GPA: 4
WE:Analyst (Internet and New Media)
Send PM
Re: A book dealer buys used books for prices ranging from $0.75 to $1.50 [#permalink]
Minimum Gross Profit is When the Cost Price is maximum and selling price is minimum.
The maximum cost price at which he can purchase a book = $1.5/book

The minimum selling price at which he can sell book is = $3/book

S.P. - C.P. = Profit
20(3)-20(1.5)
60-30
30$..
Answer is B

Posted from my mobile device
Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 6037
Own Kudos [?]: 4859 [0]
Given Kudos: 463
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Send PM
A book dealer buys used books for prices ranging from $0.75 to $1.50 [#permalink]
Bunuel
A book dealer buys used books for prices ranging from $0.75 to $1.50 and then sells them for prices ranging from $3.00 to $5.50. If the dealer were to sell 20 of these books, the minimum gross profit from this sale would be

A. $15
B. $30
C. $45
D. $50
E. $80


PS21158
\(GP_{Min} = SP_{Min} - CP_{Max}\)

Or, \(GP_{Min} = 20 ( 3.00 - 1.50 )\)

Or, \(GP_{Min} = 30\), Answer must be (B)
IESE School Moderator
Joined: 11 Feb 2019
Posts: 270
Own Kudos [?]: 179 [0]
Given Kudos: 53
Send PM
Re: A book dealer buys used books for prices ranging from $0.75 to $1.50 [#permalink]
Minimum profit when bought at the highest possible price and sold at a minimum price.

Minimum profit when all 20 books were bought at $1.50 and sold at $3.00 i.e. profit on each book will be $1.50 ($3.00 - $1.50).

Profit = 20 * 1.50 = $30.

B.
Target Test Prep Representative
Joined: 14 Oct 2015
Status:Founder & CEO
Affiliations: Target Test Prep
Posts: 19562
Own Kudos [?]: 23448 [0]
Given Kudos: 287
Location: United States (CA)
Send PM
Re: A book dealer buys used books for prices ranging from $0.75 to $1.50 [#permalink]
Expert Reply
Bunuel
A book dealer buys used books for prices ranging from $0.75 to $1.50 and then sells them for prices ranging from $3.00 to $5.50. If the dealer were to sell 20 of these books, the minimum gross profit from this sale would be

A. $15
B. $30
C. $45
D. $50
E. $80



The minimum profit for each book occurs when he sells the $1.50 (cost) books for $3.00 each, making $1.50 on each book. Thus, the minimum gross profit for selling 20 such books is 20 x $1.50 = $30.

Answer: B
Joined: 01 Dec 2018
Posts: 146
Own Kudos [?]: 148 [0]
Given Kudos: 333
Concentration: Entrepreneurship, Finance
Schools: HBS '21 ISB'22
GPA: 4
WE:Other (Retail Banking)
Send PM
Re: A book dealer buys used books for prices ranging from $0.75 to $1.50 [#permalink]
Bunuel
A book dealer buys used books for prices ranging from $0.75 to $1.50 and then sells them for prices ranging from $3.00 to $5.50. If the dealer were to sell 20 of these books, the minimum gross profit from this sale would be

A. $15
B. $30
C. $45
D. $50
E. $80


PS21158

Everyone is trying the typical method . Lately I discovered this new approach as I always get confused in min max calc I have turned these questions into min distance and max distance on NUMBER LINE .

we know profit = S.P - C.P so lets draw these values on number line
.75(CP)____1.50 (CP)___________3(sp)_________5.50(sp) Now to ensure minimum profit we can try minimise the distance between CP and SP . In other words we want to maximise the CP and minimize the SP .
Hence 20 (1.50 -3) = 30$
Tutor
Joined: 02 Oct 2015
Posts: 277
Own Kudos [?]: 67 [0]
Given Kudos: 9
Send PM
Re: A book dealer buys used books for prices ranging from $0.75 to $1.50 [#permalink]
Expert Reply
­Optimize for the lowest profit per book (highest cost and lowest sell price), and multiply by 20:

GMAT Club Bot
Re: A book dealer buys used books for prices ranging from $0.75 to $1.50 [#permalink]
Moderator:
Math Expert
95949 posts