Last visit was: 12 Jul 2024, 19:34 It is currently 12 Jul 2024, 19:34
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.
Close
Request Expert Reply
Confirm Cancel
SORT BY:
Date
Tags:
Show Tags
Hide Tags
Board of Directors
Joined: 01 Sep 2010
Posts: 4553
Own Kudos [?]: 33554 [5]
Given Kudos: 4551
Send PM
Math Expert
Joined: 02 Sep 2009
Posts: 94302
Own Kudos [?]: 640182 [0]
Given Kudos: 84576
Send PM
Senior Manager
Senior Manager
Joined: 07 Jul 2012
Posts: 281
Own Kudos [?]: 325 [2]
Given Kudos: 71
Location: India
Concentration: Finance, Accounting
GPA: 3.5
Send PM
Target Test Prep Representative
Joined: 04 Mar 2011
Status:Head GMAT Instructor
Affiliations: Target Test Prep
Posts: 3037
Own Kudos [?]: 6556 [0]
Given Kudos: 1646
Send PM
Re: A furniture store sells only two models or desks, model A and model B [#permalink]
Expert Reply
carcass wrote:
A furniture store sells only two models or desks, model A and model B The selling price of model A is $120, which is 30 percent of the selling price of model B If the furniture store sells 2,000 desks, \(\frac{3}{4}\) of which are model B, what is the furniture store's total revenue from the sale of desks?

(A) $114,000

(B) $186,000

(C) $294,000

(D) $380,000

(E) $660,000


We are given that the selling price of model A is $120, which is 30% of the selling price of model B. Thus, the selling price of model B is:

(0.3)B = 120

B = 120/0.3 = $400

We are also given that (3/4)(2,000) = 1500 model B desks were sold, and thus 2,000 - 1500 = 500 model A desks were sold.

Therefore, the total revenue for the desks is 120 x 500 + 400 x 1500 = 60,000 + 600,000 = 660,000 dollars.

Answer: E
GMAT Club Legend
GMAT Club Legend
Joined: 19 Dec 2014
Status:GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Posts: 21835
Own Kudos [?]: 11773 [1]
Given Kudos: 450
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Send PM
Re: A furniture store sells only two models or desks, model A and model B [#permalink]
1
Kudos
Expert Reply
Hi All,

We're told that a furniture store sells only two models of desks, model A and model B. The selling price of model A is $120, which is 30 percent of the selling price of the model B - and the furniture store sells 2,000 desks, 3/4 of which are model B. We're asked for the TOTAL revenue of the furniture store from the sale of desks. This question can be approached in a couple of different ways, but the answer choices are written in such a way that can beat it with a bit of critical thinking and a little Arithmetic.

To start, IF all 2000 desks were sold for $120 each, then the total revenue would be $240,000. That immediately eliminates Answers A and B.

The prompt tells us that the cost of a Model B desk is MORE THAN 3 TIMES that of a Model A desk AND that MOST of the desks sold are Model Bs...

IF we sold 1000 desks at $120 each and 1000 desks at $360 each, then the total revenue would be $120,000 + $360,000 = $480,000. However, the price of Model B is MORE than $360 AND we actually sold far MORE Model B desks than Model A desks. Thus, the revenue would be a LOT higher than $480,000. There's only one answer that fits...

Final Answer:

GMAT assassins aren't born, they're made,
Rich
User avatar
Non-Human User
Joined: 09 Sep 2013
Posts: 33953
Own Kudos [?]: 851 [0]
Given Kudos: 0
Send PM
Re: A furniture store sells only two models or desks, model A and model B [#permalink]
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.
GMAT Club Bot
Re: A furniture store sells only two models or desks, model A and model B [#permalink]
Moderator:
Math Expert
94302 posts