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# A book store bought copies of a new book by a popular author

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Magoosh GMAT Instructor
Joined: 28 Dec 2011
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A book store bought copies of a new book by a popular author  [#permalink]

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08 Jan 2014, 12:56
00:00

Difficulty:

35% (medium)

Question Stats:

77% (02:37) correct 23% (03:18) wrong based on 149 sessions

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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

For more practice problems on percents, as well as the OE for this particular question, see:
http://magoosh.com/gmat/2013/gmat-quant ... -percents/

Mike

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Mike McGarry
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Re: A book store bought copies of a new book by a popular author  [#permalink]

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08 Jan 2014, 13:22
3
C.P. = 400W
S.P. = 1.8W*150 + 1.2W*100 + 0.6W*150 = 480W
Since, S.P. > C.P., there is net profit.
Profit = S.P. - C.P. = 480W - 400W = 80W
Profit % = (Profit/C.P.)*100 = (80W/400W)*100 = 20%

So, the correct answer is D.
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Re: A book store bought copies of a new book by a popular author  [#permalink]

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08 Jan 2014, 19:54
[[w(150)(1.8)+w(100)(1.2)+w(150)(0.6)]/400w] - 1

[50[(3)(1.8) + (2)(1.2) + (3)(0.6)] / (50)(8)] - 1

[(5.4 + 2.4 + 1.8)/8] - [8/8]

+1.6/8

+20%
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Re: A book store bought copies of a new book by a popular author  [#permalink]

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15 Jul 2017, 06:07
The percentage profit does not depend on how many books the person bought or at what price the person bought if we know the above.
Say the person purchased 4 books at $10 each. Here w = 10 . So according to the question the person sold (150/400)*4 books at$18, 100/400* 4 books at $12 and remaining 150 at$6.
So the rev = 1.5*18+1.5*6+12 = 27+12+9 = 48.
Cost is \$40 = 4*10. % profit is 20%.
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Re: A book store bought copies of a new book by a popular author  [#permalink]

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12 Apr 2019, 10:15
The store bought 400 copies, each copy at wholesale price W => CP = 400W.
The store sold the first 150 copies at 80% more than W = $$SP_1$$ = 150 x 1.80W = 270W.
sold a 100 more at 20% more than W = $$SP_2$$ = 100 x 1.20W = 120W.
sold the remaining copies( 400 - 150 -100 ) to a bargain retailer at 40% less than W. = $$SP_3$$ = 150 x 0.60W = 90W.
SP = 270W + 120W + 90W = 480W.

Profit = SP - CP = 480W - 400W = 80W.

Profit % = $$\frac{80W}{400W} X 100$$ = 20.

Re: A book store bought copies of a new book by a popular author   [#permalink] 12 Apr 2019, 10:15
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