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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

NEW question from GMAT® Quantitative Review 2019

(PS00812)

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Re: A rug manufacturer produces rugs at a cost of $75 per rug. What is the [#permalink] ### Show Tags 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] ### Show Tags 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 (PS00812) 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. Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 3825 Location: United States (CA) A rug manufacturer produces rugs at a cost of$75 per rug. What is the  [#permalink]

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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

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Re: A rug manufacturer produces rugs at a cost of $75 per rug. What is the [#permalink] ### Show Tags 21 Sep 2018, 21:07 $$Cost=75*150=11250$$ $$Revenue= (\frac{2}{3}*150)*(150)+(\frac{1}{3}*150)*(200)=15000+10000=25000$$ $$Profit=Revenue-Cost=25000-11250=13750$$ _________________ Eric Thomas, "When you want to succeed as bad as you want to breathe, then you'll be successful." Re: A rug manufacturer produces rugs at a cost of$75 per rug. What is the &nbs [#permalink] 21 Sep 2018, 21:07
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