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08 Mar 2017, 04:10
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
78% (03:15) correct
22%
(03:22)
wrong
based on 232
sessions
History
Date
Time
Result
Not Attempted Yet
A department store receives a shipment of 1,000 shirts, for which it pays $9,000. The store sells the shirts at a price 80 percent above cost for one month, after which it reduces the price of the shirts to 20 percent above cost. The store sells 75 percent of the shirts during the first month and 50 percent of the remaining shirts afterward. How much gross income did sales of the shirts generate?
(A) $10,000
(B) $10,800
(C) $12,150
(D) $13,500
(E) $16,200
(A) $10,000
(B) $10,800
(C) $12,150
(D) $13,500
(E) $16,200
0akshay0
Joined: 19 Apr 2016
Last visit: 14 Jul 2019
Posts: 192
Given Kudos: 59
Location: India
Schools: Jindal '20 Kelley '20 Broad '20 Carey '20 Mays '20
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE:Web Development (Computer Software)
08 Mar 2017, 04:18
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SajjadAhmad
0.75*1000 ------ 75% of 1000
0.25*1000*0.5 ------ half of the remaining 25% of 1000
9 ----- price of each tshirt
1.8 ----- 80 percent above cost
1.2 ----- 20 percent above cost
gross income = 0.75*1000*9*1.8 + 0.25*1000*0.5*1.2*9 = 12150 + 1350 = 13500
Hence option D is correct
Hit Kudos if you liked it
General Discussion
10 Mar 2017, 10:34
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SajjadAhmad
We are given that a department store receives a shipment of 1,000 shirts, for which it pays $9,000. Thus, the cost per shirt is 9 dollars per shirt.
Since the store sells the shirts at a price 80 percent above cost for one month, the selling price for that month is 1.8 x 9 = $16.20. Since 75 percent of the shirts or 0.75 x 1,000 = 750 shirts are sold during this month, the revenue earned is 750 x 16.2 = $12,150.
After that month, 50% of the remaining shirts or 0.5 x 250 = 125 shirts are sold at a cost of 1.2 x 9 = $10.80. The revenue earned from the sale of these shirts is 125 x 10.8 = $1,350.
Thus, the gross income earned was $12,150 + $1,350 = $13,500.
Answer: D
