vita60 wrote:
A florist buys roses in bulk to be sold at a retail price of $30 per dozen, earning a 25 percent profit. Of the 288 roses purchased by the florist, 24 could not be sold due to wilting, and an additional 12 were sold at half of the retail price due to age. Approximately what percentage of the total profits that would have been made if all of the roses were sold at full price was lost as a result of the roses that were not sold and those that were sold for half price?
A 12.5
B 36
C 40
D 52
E 68
Profit = 25%
Selling price = $30/dozen
Cost price = $24/dozen (for a profit of 25% of amount $6/dozen)
Of the 288/12 = 24 dozens,
21 dozens were sold at $6 profit,
2 dozens were not sold so there was a loss of $24*2 = $48 on them
and 1 dozen were sold at $15 so a loss of $9.
Profit if all roses were sold at full price = 24*6 = $144
Actual profit = 21*6 - 48 - 9 = 69
Reduction in profit = 144 - 69 = 75
% of total profit lost = 75/144 * 100 = more than 50%
Answer (D)
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Karishma
Veritas Prep GMAT Instructor
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