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A rug manufacturer produces rugs at a cost of $75 per rug. What is the

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New post 30 Jul 2018, 01:10
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A rug manufacturer produces rugs at a cost of $75 per rug. What is the manufacturer's gross profit from the sale of 150 rugs if 2/3 of the rugs are sold for $150 per rug and the rest are sold for $200 per rug?


A. $10,350
B. $11,250
C. $13,750
D. $16,250
E. $17,800


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Re: A rug manufacturer produces rugs at a cost of $75 per rug. What is the  [#permalink]

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New post 30 Jul 2018, 03:54
Bunuel wrote:
A rug manufacturer produces rugs at a cost of $75 per rug. What is the manufacturer's gross profit from the sale of 150 rugs if 2/3 of the rugs are sold for $150 per rug and the rest are sold for $200 per rug?


C.P = 75 * 150 = 11250

2/3 of 150 = 2/3 * 150 = 100
Remaining rugs = 150 - 100 = 50

Therefore,
S.P = 100 * 150 + 50 * 200 = 25000

Profit = S.P - C.P = 25000 - 11250 = 13750

Hence, C.
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Re: A rug manufacturer produces rugs at a cost of $75 per rug. What is the  [#permalink]

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New post 30 Jul 2018, 03:55
Bunuel wrote:
A rug manufacturer produces rugs at a cost of $75 per rug. What is the manufacturer's gross profit from the sale of 150 rugs if 2/3 of the rugs are sold for $150 per rug and the rest are sold for $200 per rug?


A. $10,350
B. $11,250
C. $13,750
D. $16,250
E. $17,800


NEW question from GMAT® Quantitative Review 2019


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Total production cost = 150*75 = 11250

Selling price of the 2/3 of 150 rugs = 100 * 150 =- 15000

Selling price of 50 rugs = 50*200 =10000

Total sales = 10000 + 15000 = 25000

Gross profit = 25000 - 11250 = 13750

The best answer is C.
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A rug manufacturer produces rugs at a cost of $75 per rug. What is the  [#permalink]

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New post 10 Aug 2018, 18:51
Bunuel wrote:
A rug manufacturer produces rugs at a cost of $75 per rug. What is the manufacturer's gross profit from the sale of 150 rugs if 2/3 of the rugs are sold for $150 per rug and the rest are sold for $200 per rug?


A. $10,350
B. $11,250
C. $13,750
D. $16,250
E. $17,800


We see that ⅔ of the 150 rugs, or 100 rugs, are sold for $150 each, and the remaining 50 rugs are sold for $200 each. Since profit = revenue - cost, we have:

Profit = (100 x 150 + 50 x 200) - (150 x 75)

Profit = 15,000 + 10,000 - 11,250

Profit = 13,750

Answer: C
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Re: A rug manufacturer produces rugs at a cost of $75 per rug. What is the  [#permalink]

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New post 21 Sep 2018, 21:07
\(Cost=75*150=11250\)
\(Revenue= (\frac{2}{3}*150)*(150)+(\frac{1}{3}*150)*(200)=15000+10000=25000\)
\(Profit=Revenue-Cost=25000-11250=13750\)
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Re: A rug manufacturer produces rugs at a cost of $75 per rug. What is the  [#permalink]

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New post 10 Dec 2018, 20:01
Easy this one,

*Profit = (total) selling prices - (total) costs

We have: Total cost of 150 rugs = 75 x 150 = 11250

150 rugs sold 2/3 <=> 100 rugs were sold with the price of $150 each.

=> 100 rugs = 100x150= $15000

The 50 rugs rest are sold with the price of $200 each => 50 rugs= 50 x200= $10000

=> G.profit= (15000+10000) - 11250= $ 13750

Answer C.
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Re: A rug manufacturer produces rugs at a cost of $75 per rug. What is the   [#permalink] 10 Dec 2018, 20:01
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