GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 19 Oct 2018, 00:42

### 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

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

# A department store receives a shipment of 1,000 shirts, for which it p

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

SVP
Status: Preparing GMAT
Joined: 02 Nov 2016
Posts: 1729
Location: Pakistan
GPA: 3.39
A department store receives a shipment of 1,000 shirts, for which it p  [#permalink]

### Show Tags

08 Mar 2017, 04:10
1
00:00

Difficulty:

25% (medium)

Question Stats:

87% (02:40) correct 13% (02:27) wrong based on 31 sessions

### HideShow timer Statistics

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

_________________

Official PS Practice Questions
Press +1 Kudos if this post is helpful

Senior Manager
Joined: 19 Apr 2016
Posts: 274
Location: India
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE: Web Development (Computer Software)
A department store receives a shipment of 1,000 shirts, for which it p  [#permalink]

### Show Tags

08 Mar 2017, 04:18
1
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

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
Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 3886
Location: United States (CA)
Re: A department store receives a shipment of 1,000 shirts, for which it p  [#permalink]

### Show Tags

10 Mar 2017, 10:34
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

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.

_________________

Scott Woodbury-Stewart
Founder and CEO

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Re: A department store receives a shipment of 1,000 shirts, for which it p &nbs [#permalink] 10 Mar 2017, 10:34
Display posts from previous: Sort by

# A department store receives a shipment of 1,000 shirts, for which it p

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.