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Math Expert
Joined: 02 Sep 2009
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A farmer produced 750 bushels of a certain crop at a cost of $20 per [#permalink] ### Show Tags 28 Jun 2017, 02:41 00:00 Difficulty: 25% (medium) Question Stats: 78% (02:04) correct 22% (01:53) wrong based on 55 sessions ### HideShow timer Statistics A farmer produced 750 bushels of a certain crop at a cost of$20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop?

(A) $11250 (B)$13375
(C) $15000 (D)$18750
(E) $26250 _________________ Intern Joined: 30 Mar 2017 Posts: 38 Location: United States (FL) Re: A farmer produced 750 bushels of a certain crop at a cost of$20 per  [#permalink]

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28 Jun 2017, 03:11
1

**Notice that the problem is asking for profit so we have to subtract cost from revenue**

Find the total cost:
750 * 20 = 15000

Break the cost up into 1/3rds of production
15000/3 = 5000

2/3rds of the crops are sold for double their cost
10000*2 - 5000*2 = 10000

1/3 is sold for 25% more than cost
5000*1.25 - 5000 = 1250

10000+1250 = 11250

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Re: A farmer produced 750 bushels of a certain crop at a cost of $20 per [#permalink] ### Show Tags 28 Jun 2017, 03:17 2/3 (750) * 40 + (750/3) * 25 =$20,000 + $6,250 =$26,250

Gross Profit = $26,250 - (750*$20) = $26,250 -$15,000 = $11,250. Ans - A. _________________ I used to think the brain was the most important organ. Then I thought, look what’s telling me that. Senior Manager Joined: 28 May 2017 Posts: 283 Concentration: Finance, General Management A farmer produced 750 bushels of a certain crop at a cost of$20 per  [#permalink]

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Updated on: 28 Jun 2017, 05:55
Bunuel wrote:
A farmer produced 750 bushels of a certain crop at a cost of $20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop? (A)$11250
(B) $13375 (C)$15000
(D) $18750 (E)$26250

Short Cut Method

On $$\frac{2}{3}$$ of production, Gross profit earned was = 100% of $20 =$20
On $$\frac{1}{3}$$ of production, Gross profit earned was = $25% of 20 =$5
Weighted average of Gross Profit/Bushel = $$\frac{2}{3}$$ 20 + $$\frac{1}{3}$$ 5 = $$\frac{45}{3}$$ = 15
Total Gross Profit = 15 x 750 = 11250

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Originally posted by elegantm on 28 Jun 2017, 04:39.
Last edited by elegantm on 28 Jun 2017, 05:55, edited 2 times in total.
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A farmer produced 750 bushels of a certain crop at a cost of $20 per [#permalink] ### Show Tags 28 Jun 2017, 05:25 If the cost of production per bushel is x$
From the question stem we know that
CP : 750x
SP : $$500(2x) + 250(\frac{5x}{4}) = 1000x + (\frac{1250x}{4}) = \frac{5250x}{4}$$

Profit earned(due to sale of bushel) =$$\frac{5250x}{4}- 750x$$ = $$\frac{(5250x - 3000x)}{4} = \frac{2250x}{4}$$

Since we are given the cost of producing the bushel = 20$(in question stem, putting x=20$)

Cost : $$2250*\frac{20}{4}$$ = 2250*5 = 11250$(Option A) _________________ You've got what it takes, but it will take everything you've got Board of Directors Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 4382 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) A farmer produced 750 bushels of a certain crop at a cost of$20 per  [#permalink]

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28 Jun 2017, 08:14
Bunuel wrote:
A farmer produced 750 bushels of a certain crop at a cost of $20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop? (A)$11250
(B) $13375 (C)$15000
(D) $18750 (E)$26250

Total cost of production = $15000 Quote: If the farmer sold (2/3)rd of the bushels for double their production cost Selling price of 2/3 rd of the bushels = 10000*2 => 20000 Quote: sold the remaining bushels at 25 percent above their production cost Selling price of remaining is $$\frac{125}{100}*5000$$ = 6250 Gross Profit = $$20000 + 6250 - 15000$$ So, Gross Profit is (A) 11250 _________________ Thanks and Regards Abhishek.... PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only ) Retired Moderator Joined: 19 Mar 2014 Posts: 934 Location: India Concentration: Finance, Entrepreneurship GPA: 3.5 Re: A farmer produced 750 bushels of a certain crop at a cost of$20 per  [#permalink]

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29 Jun 2017, 00:48
A farmer produced 750 bushels of a certain crop at a cost of $20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop? Cost of Producing 750 Bushels $$= 750 * 20 = 15,000$$ 2/3 Bushels $$= 750 * \frac{2}{3} = 500$$ 2/3 Bushels sold at double the cost $$= 20 * 2 = 40$$ Profit per Bushels for 2/3 sold at double cost $$= 40 - 20 = 20$$ Total Profit by selling 2/3 Bushels at double cost $$= 500 * 20 = 10,000$$ ------------------------(1) Remaining, or 1/3 of Bushels sold at 5% profit $$= 20 + \frac{5}{100} * 20 = 20 + 5 = 25$$ Profit per Bushels for 1/3 sold at 5% profit $$= 25 - 20 = 5$$ Total profit by selling 1/3 Bushels at 5% profit $$= 5 * 250 = 1,250$$ ------------------------(1) From (1) & (2) Total Profit $$10,000 + 1,250 = 11,250$$ Hence, Answer is A _________________ "Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent." Best AWA Template: https://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html#p470475 Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 4890 Location: United States (CA) Re: A farmer produced 750 bushels of a certain crop at a cost of$20 per  [#permalink]

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30 Jun 2017, 08:21
Bunuel wrote:
A farmer produced 750 bushels of a certain crop at a cost of $20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop? (A)$11250
(B) $13375 (C)$15000
(D) $18750 (E)$26250

We are given that the farmer sold 2/3 of the bushels for double their production cost; thus, he sold them for:

750(2/3)(40) = (500)(40) = $20,000 He also sold the remaining 1/3 of the bushels at 25 percent above their product cost; thus, he sold them for: (750)(1/3)(1.25)(20) = (250)(25) =$6,250

His cost is 750(20) = $15,000. Thus, the profit was: 20,000 + 6,250 - 15,000=$11,250

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Re: A farmer produced 750 bushels of a certain crop at a cost of $20 per [#permalink] ### Show Tags 12 Feb 2019, 04:04 Bunuel wrote: A farmer produced 750 bushels of a certain crop at a cost of$20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop?

Initial price = 750 * 20 = 15000

New price = 500 * 40(double of 20) + 250 *25 ( 25 percent above their production cost) = 26250

Profit = 26250 - 15000
$11250 _________________ If you notice any discrepancy in my reasoning, please let me know. Lets improve together. Quote which i can relate to. Many of life's failures happen with people who do not realize how close they were to success when they gave up. Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 8880 Location: Pune, India Re: A farmer produced 750 bushels of a certain crop at a cost of$20 per  [#permalink]

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12 Feb 2019, 04:29
Bunuel wrote:
A farmer produced 750 bushels of a certain crop at a cost of $20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop? (A)$11250
(B) $13375 (C)$15000
(D) $18750 (E)$26250

Using weighted average:

100% profit on (2/3)rd of the bushels and 25% profit on (1/3)rd of the bushels.

$$Aavg = \frac{100*(2/3) + 25*(1/3)}{1} = 75$$

Average profit is 75% over the entire crop.
$$Profit = (\frac{75}{100}) * (750*20) = 11250$$

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Re: A farmer produced 750 bushels of a certain crop at a cost of $20 per [#permalink] ### Show Tags 12 Feb 2019, 05:02 Bunuel wrote: A farmer produced 750 bushels of a certain crop at a cost of$20 per bushel. If the farmer sold (2/3)rd of the bushels for double their production cost and sold the remaining bushels at 25 percent above their production cost, what was the farmer’s gross profit on the sale of the crop?

(A) $11250 (B)$13375
(C) $15000 (D)$18750
(E) $26250 total investment = 750 * 20 ; 15,000 out of 750 ; 2/3 ; 500 were sold at 40$ = 20,000 and other 250 @ 1.25 * 20 = 25 * 250 = 6250
total earned = 20,000+6250 = 26250
gross profit = 26500-15000; 11250
IMO A
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