Last visit was: 19 Nov 2025, 11:07 It is currently 19 Nov 2025, 11:07
Home
GMAT
Messages
Tests
Schools
Events
Rewards
Chat
My Profile
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.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
Sub 505 Level|   Word Problems|                  
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,311
 [27]
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,311
 [27]
A company sells radios for $15.00 each. It costs the company $14.00 pe 30 Jul 2018, 00:17
3
Kudos
Add Kudos
24
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

5% (low)

Question Stats:

85% (01:31) correct 15% (01:34) wrong based on 1358 sessions

History

Date
Time
Result
Not Attempted Yet
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


(PS01949)­
ShowHide Answer
Official Answer
D
Most Helpful Reply
User avatar
ScottTargetTestPrep
User avatar
Target Test Prep Representative
Joined: 14 Oct 2015
Last visit: 19 Nov 2025
Posts: 21,716
Own Kudos:
26,996
 [8]
Given Kudos: 300
Status:Founder & CEO
Affiliations: Target Test Prep
Location: United States (CA)
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 21,716
Kudos: 26,996
 [8]
A company sells radios for $15.00 each. It costs the company $14.00 pe 10 Aug 2018, 18:56
8
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500
Show more

The gross profit for 1,000 radios is:

15 x 1000 - 14 x 1000 = 1000(15 - 14) = $1000

The gross profit for 2,000 radios is:

15 x 2000 - 13.5 x 2000 = 2000(15 - 13.5) = 2000 x 1.5 = $3000.

The difference is $2000.

Answer: D
User avatar
KSBGC
User avatar
Joined: 31 Oct 2013
Last visit: 10 Mar 2022
Posts: 1,246
Own Kudos:
1,456
 [6]
Given Kudos: 635
Concentration: Accounting, Finance
GPA: 3.68
WE:Analyst (Accounting)
Posts: 1,246
Kudos: 1,456
 [6]
A company sells radios for $15.00 each. It costs the company $14.00 pe 30 Jul 2018, 01:17
5
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Bunuel
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


NEW question from GMAT® Quantitative Review 2019


(PS01949)
Show more


Selling price per radio = 15

Phase 1:

production cost of 1000 radios = 14*1000 = 14000

Total selling price of 1000 radios = 15*1000 = 15000

Profit = 1000

Phase 2 :

total selling price of 2000 = 15*2000 = 30000

Total production cost of 2000 radios = 13.50*2000 = 27000

Profit = 30000 -27000 = 3000

Difference in profit = 3000 -1000 = 2000

The best answer is D.
General Discussion
User avatar
Bismarck
User avatar
Joined: 18 Jun 2018
Last visit: 15 Mar 2023
Posts: 217
Own Kudos:
464
 [3]
Given Kudos: 35
Posts: 217
Kudos: 464
 [3]
A company sells radios for $15.00 each. It costs the company $14.00 pe 30 Jul 2018, 01:28
1
Kudos
Add Kudos
2
Bookmarks
Bookmark this Post
Bunuel
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


NEW question from GMAT® Quantitative Review 2019


(PS01949)
Show more

OA:D

1st case: production and sale of 1,000 radios
Selling price/unit = $15.00
Cost price/unit = $14.00
Profit /unit = $1.00
Profit on 1000 units = $1.00*1000 =$1000

2nd case: production and sale of 2,000 radios
Selling price/unit = $15.00
Cost price/unit = $13.50
Profit /unit = $1.50
Profit on 2000 units = $1.50*2000 =$3000

Difference in gross profit = $3000-$1000 =$2000
User avatar
AdityaHongunti
User avatar
Joined: 20 Sep 2016
Last visit: 31 Mar 2021
Posts: 551
Own Kudos:
1,054
Given Kudos: 632
Location: India
Concentration: Strategy, Operations
Schools: Boston U '22 (S) Smeal "22 (S) Krannert '22 (I) Katz '22 (I) UC Davis '22 (S)
GPA: 3.6
WE:Operations (Consumer Packaged Goods)
Schools: Boston U '22 (S) Smeal "22 (S) Krannert '22 (I) Katz '22 (I) UC Davis '22 (S)
Posts: 551
Kudos: 1,054
A company sells radios for $15.00 each. It costs the company $14.00 pe 16 Aug 2018, 23:45
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Shorter way:
SP= $15.00 Each

CP 1= 14.00 EACH
CP 2= 13.5 EACH.

now instead of considering 1000 and 2000 just consider 1 and 2 as ratio would be constant.

>> Profit= 15(1) -14(1) = 1

>>Profit = 15(2)- 13.5(2)= 3
( As twice the amount is produced and sold)

Answer >> 3-1= 2

Posted from my mobile device
avatar
sunngupt11
avatar
Joined: 01 May 2017
Last visit: 12 Aug 2023
Posts: 24
Own Kudos:
2
Given Kudos: 86
Posts: 24
Kudos: 2
A company sells radios for $15.00 each. It costs the company $14.00 pe 05 Jan 2019, 01:08
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The gross profit for 1,000 radios is:

15 x 1000 - 14 x 1000 = 1000(15 - 14) = $1000

The gross profit for 2,000 radios is:

15 x 2000 - 13.5 x 2000 = 2000(15 - 13.5) = 2000 x 1.5 = $3000.

The difference is:

3000$ - 1000$ = $2000.

Answer: D
User avatar
jjoy12
User avatar
Joined: 30 Apr 2014
Last visit: 21 Feb 2021
Posts: 4
Own Kudos:
2
Given Kudos: 33
Schools: AGSM '18 IIMA IIMB IIMC
Schools: AGSM '18 IIMA IIMB IIMC
Posts: 4
Kudos: 2
A company sells radios for $15.00 each. It costs the company $14.00 pe 16 Mar 2019, 04:06
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
A company sells radios for $15.00 each. It costs the company $14.00 per radio to produce 1,000 radios and $13.50 per radio to produce 2,000 radios. How much greater will the company's gross profit be from the production and sale of 2,000 radios than from the production and sale of 1,000 radios?

A. $500
B. $1,000
C. $1,500
D. $2,000
E. $2,500


NEW question from GMAT® Quantitative Review 2019


(PS01949)
Show more

Answer

Scenario 1: ( For 1000 Nos Radio production )

Selling Price for Radio = $ 15
Cost per Radio = $ 14
Profit per Radio = $1------------- A

Scenario 2 ( For 2000 Nos Radio production )

Selling Price for Radio = $ 15
Cost per Radio = $ 13.5
Profit per Radio = $1.5------------- B

Difference in Profit from 2000 nos production to 1000 Nos Production

=($ 1.5 *2000 nos) - ($ 1 *1000 nos)
=$ 3000 - $1000 = $ 2000

Hence Answer D.

Please give +1 Kudos if you like this approach :) :)
User avatar
Nipungupta9081
User avatar
School Moderator - INSEAD Masters
Joined: 07 Jan 2020
Last visit: 10 Aug 2025
Posts: 501
Own Kudos:
273
Given Kudos: 193
Location: India
GPA: 4
WE:Analyst (Accounting)
Posts: 501
Kudos: 273
A company sells radios for $15.00 each. It costs the company $14.00 pe 23 Aug 2020, 04:08
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Answer D

Production cost of 1000 radios = 14*1000 = 14000

Total selling price of 1000 radios = 15*1000 = 15000

Profit for 1st batch = 15000 - 14000 = 1000

Production cost of 1000 radios = 13.50 * 2000 = 27000

Total selling Cost of 1000 radios = 15 * 2000 = 30000

Profit for 2nd batch = 3000

The difference between the 2 batches would be = 3000 - 1000 = 2000
avatar
Aparna05
avatar
Joined: 04 Apr 2020
Last visit: 10 Jul 2025
Posts: 18
Own Kudos:
35
Given Kudos: 221
Location: India
Concentration: General Management, Technology
Schools: Schulich Sep'22 Intake Rotman '24 Desautels McGill MMA "24 HEC Montreal
Products:
My Reviews
Schools: Schulich Sep'22 Intake Rotman '24 Desautels McGill MMA "24 HEC Montreal
Posts: 18
Kudos: 35
A company sells radios for $15.00 each. It costs the company $14.00 pe 04 Sep 2021, 07:05
Kudos
Add Kudos
Bookmarks
Bookmark this Post
SP of 1 radio is $15

CP of 1 radio if 1000 radios are produced=$14
Hence here profit of $1 is made per radio.
CP of 1000 radios is $14000
And SP for 1000 radios is $15000
Gross Profit=SP-CP=$15000-$14000=$1000

CP of 1 radio if 2000 radios are produced=$13.50
Here profit of $1.5 is made per radio
CP of 2000 radios is $27000
SP of 2000 radios is $30000
Gross Profit=SP-CP=$30000-$27000=$3000

Hence company makes a $3000-$1000=$2000 more in the second case.

IMO D is the correct choice
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 38,589
Own Kudos:
1,079
Posts: 38,589
Kudos: 1,079
A company sells radios for $15.00 each. It costs the company $14.00 pe 18 Feb 2025, 09:19
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Moderators:
Bunuel
Math Expert
105390 posts
Krunaal
Tuck School Moderator
805 posts