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A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch

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A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch  [#permalink]

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New post 24 Sep 2018, 04:46
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A trader bought 1500 chairs for $24 each. He sold 40 percent of the chairs for $60 each and the rest for $30 each. What was the trade’s average profit per chair?

(A) $5
(B) $8
(C) $10
(D) $12
(E) $18

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Re: A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch  [#permalink]

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New post 24 Sep 2018, 06:26
Bunuel wrote:
A trader bought 1500 chairs for $24 each. He sold 40 percent of the chairs for $60 each and the rest for $30 each. What was the trade’s average profit per chair?

(A) $5
(B) $8
(C) $10
(D) $12
(E) $18


1500 chairs for $24 each i.e. Total Cost = 1500*24 = 36000

40% chair = 600 @ $60 = 36000
60% chair = 900 @ $30 = 27000

Total Revenue = 36000+27000 = 63000

Total Profit = Revenue - cost = 63000 - 36000 = 27000

Average Profit per chair = 27000/1500 = $18

Answer: option E
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Re: A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch  [#permalink]

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New post 24 Sep 2018, 08:52
Top Contributor
Bunuel wrote:
A trader bought 1500 chairs for $24 each. He sold 40 percent of the chairs for $60 each and the rest for $30 each. What was the trade’s average profit per chair?

(A) $5
(B) $8
(C) $10
(D) $12
(E) $18


A trader bought 1500 chairs for $24 each.
TOTAL expense = (1500)(24) = (3000)(12) = $36,000

ASIDE: What's with the step that says "(1500)(24) = (3000)(12)"???
This is a time-saving tip that can make some products easier to calculate
See the video below for more.


He sold 40 percent of the chairs for $60 each and the rest for $30 each.
40% of 1500 chairs = 600 chairs
So, 600 chairs sold for $60 each, and the remaining 900 chairs sold for $30 each

So, revenue = (600)($60) + (900)($30)
= $36,000 + $27,000
= $63,000

Profit = $63,000 - $36,000
= $27,000

What was the trade’s average profit per chair?
Profit per chair = (total profit)/(total number of chairs)
= $27,000/1500
= $18

Answer: E

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Re: A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch  [#permalink]

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New post 25 Sep 2018, 01:12
Total cost = 1500 x 24 = 36,000

60% of the chairs were sold at $60
=>600x60
=>$36,000

Remaining chairs were sold at $30
=>900x30
=>$27,000

Total revenue = 36,000+27,000 = $63000
Selling price of a chair = 63000/1500 = $42

Average profit per chair = 42-24 =$18

Answer is E
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Re: A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch  [#permalink]

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New post 25 Sep 2018, 03:30
To save time, simply find the weighted average of the profit for each chair.

40% of the time he made a profit of 60-24=36.
60% of the time he made a profit of 30-24=6.

In average, he made a profit of 40%(36)+60%(6) = 4*3.6 + 3.6 = 5*3 + 5*0.6 = 18.

Answer E.
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Re: A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch  [#permalink]

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New post 27 Sep 2018, 16:24
Bunuel wrote:
A trader bought 1500 chairs for $24 each. He sold 40 percent of the chairs for $60 each and the rest for $30 each. What was the trade’s average profit per chair?

(A) $5
(B) $8
(C) $10
(D) $12
(E) $18


The trader sold 40 percent of 1500 chairs, which is 1500 x 0.4 = 600 chairs for 60 dollars each. Thus, the remaining 900 chairs were sold for 30 dollars each.

Using the weighted average formula, we calculate the average revenue per chair:

(600 x 60 + 900 x 30)/1500 = (36000 + 27000)/1500 = 63000/1500 = $42

Since Profit = Revenue - Cost, we see that the average profit per chair is 42 - 24 = $18.

Answer: E
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Re: A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch &nbs [#permalink] 27 Sep 2018, 16:24
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