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1
13 00:00

Difficulty:   5% (low)

Question Stats: 88% (02:23) correct 12% (02:52) wrong based on 368 sessions

### HideShow timer Statistics A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for$30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio? A.$2
B. $3 C.$4
D. $5 E.$6

Originally posted by vksunder on 09 Oct 2008, 10:08.
Last edited by Bunuel on 18 Oct 2013, 00:26, edited 2 times in total.
Moved to PS forum and added the OA.
Veritas Prep GMAT Instructor D
Joined: 16 Oct 2010
Posts: 9446
Location: Pune, India
Re: A wholesaler bought 1,200 radios for $18 each. The [#permalink] ### Show Tags 13 3 vksunder wrote: A wholesaler bought 1,200 radios for$18 each. The wholesaler sold 60 percent of the radios for $30 each and the rest for$15 each. What was the wholesaler’s average (arithmetic mean) profit per radio?

A. $2 B.$3
C. $4 D.$5
E. $6 This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks! Responding to a pm: Yes, you can use weighted average here. You want to find the average selling price. 60% of radios were sold at$30 and 40% at $15. Average selling price = (30*0.6 + 15*0.4)/1 = 24 Average cost price =$18

Average profit = $6 _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > ##### Most Helpful Community Reply Intern  Joined: 09 Oct 2008 Posts: 19 Re: word prob [#permalink] ### Show Tags 6 FACTOR, FACTOR, FACTOR! Fractorization is your best friend (Do NOT attempt to solve equation, especially any multiplication until all the factorization is completed.) Total Cost: 1200*18 Sales1: 1200*(3/5)*30 = 1200*18 Sales2: 1200*(2/5)*15 = 1200*6 Ave profit = (Sales1 + Sales2 - Cost) / 1200 = ( (1200*18)+(1200*6)-(1200*18) ) / 1200 = (1200*6)/1200 = 6 The approach shows many details, but in reality all you need is the first line: "( (1200*18)+(1200*6)-(1200*18) ) / 1200", which should give you '6' right away after you cross them out. The only arithmetics I had to do were "3/5 * 30 = 18" and "2/5 * 15 = 6" Do simple arithmetic as you read the question! 18 and 6 were already written on my scratch paper by the time I read the word, "average" in the last sentense 1200 was never even involved The whole process should not take more than 30 sec. ##### General Discussion Senior Manager  Joined: 21 Apr 2008 Posts: 408 Schools: Kellogg, MIT, Michigan, Berkeley, Marshall, Mellon Re: word prob [#permalink] ### Show Tags 2 Hi guys, For me E mean price=(720*30+480*15)/1200=24 mean profit=24-18=$6

OA?

Cheers
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### Show Tags

A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for$30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio? A.$2
B. $3 C.$4
D. $5 E.$6

This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks![/quote]

TOTAL SALE PRICE - TOTAL COST / NO OF RADIOS SOLD = AVERAGE PROFIT /RADIO

TOTAL COST = 21,600, TOTAL SALE PRICE = 720*30+480*15 = 21600+7200 = 28800

28800-21600 / 1200 = 7200/1200 = 6

Manager  Joined: 04 Jan 2006
Posts: 249

### Show Tags

vksunder wrote:
A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for$30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio? A.$2
B. $3 C.$4
D. $5 E.$6

This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks!

Key to solve this question:
- Do not multiply 1,200 with the list price. It will make much longer to solve the problem.
- Try to set up basic equation to see the best possible way to solve the problem.

Profit = Revenue - Cost
Average Profit = (Revenue - Cost) / 1,200 ---------- (1)

Cost = 18 x 1,200 ---------- (2)

Revenue = (30 x 1,200 x 60%) + (15 x 1,200 x 40%) = 1,200 [(30 x 0.6) + (15 x 0.4)]
= 1,200(18 + 6) ---------- (3)

(3) - (2); Revenue - Cost = Profit = 1,200 [18+6] - (1,200 x 18) = 1,200x6 ---------- (4)

Put (4) in (1);
Average Profit = 1,200 x 6 / 1,200 = $6 per radio. The answer is E. Manager  Joined: 01 Jan 2013 Posts: 50 Location: India Re: A wholesaler bought 1,200 radios for$18 each. The  [#permalink]

### Show Tags

VeritasPrepKarishma wrote:
vksunder wrote:
A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for$30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio? A.$2
B. $3 C.$4
D. $5 E.$6

This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks!

Responding to a pm:

Yes, you can use weighted average here. You want to find the average selling price.
60% of radios were sold at $30 and 40% at$15.
Average selling price = (30*0.6 + 15*0.4)/1 = 24
Average cost price = $18 Average profit =$6

Thanks karishma,
I was able to identify weighted average concept here,but was unable to proceed.
Manager  Joined: 01 Jan 2013
Posts: 50
Location: India
Re: A wholesaler bought 1,200 radios for $18 each. The [#permalink] ### Show Tags VeritasPrepKarishma wrote: vksunder wrote: A wholesaler bought 1,200 radios for$18 each. The wholesaler sold 60 percent of the radios for $30 each and the rest for$15 each. What was the wholesaler’s average (arithmetic mean) profit per radio?

A. $2 B.$3
C. $4 D.$5
E. $6 This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks! Responding to a pm: Yes, you can use weighted average here. You want to find the average selling price. 60% of radios were sold at$30 and 40% at $15. Average selling price = (30*0.6 + 15*0.4)/1 = 24 Average cost price =$18

Average profit = $6 Using scale method 15$----4-----Average S.P-----6-----30$W1:W2 = 3:2 Average S.P = 15 + (3/5 X 15) = 24 Average profit = S.P - C.P = 24 - 18 = 6 Intern  Joined: 19 Nov 2012 Posts: 2 Re: A wholesaler bought 1,200 radios for$18 each. The  [#permalink]

### Show Tags

I think an easy way to answer this problem is to scale it down.
1,200 @ $18 60% @$30
40% @ $15 Right? It doesn't matter what number you base your percent on as long as it is a counting number. So instead of doing the calculations based on 1,200 radios, base the problem on 10 radios. Purchase Price 10 @$18 = $180 Sale Price 6 + 4 = 10 6 @$30 = $180 4 @$15 = $60$180 + $60 =$240

Sale Price - Purchase Price = Profit
$240 -$180 = $60 And because we based this problem on 10 radios to find the price per unit we divide$60 by 10

$60 / 10 =$6
Intern  Joined: 21 Dec 2012
Posts: 1

### Show Tags

((0.6.1200*30+0.4*1200*15)-18*1200)/1200=(18*1200+6*1200-18*1200)/1200=6
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Concentration: Finance
Re: A wholesaler bought 1,200 radios for $18 each. The [#permalink] ### Show Tags 1 vksunder wrote: A wholesaler bought 1,200 radios for$18 each. The wholesaler sold 60 percent of the radios for $30 each and the rest for$15 each. What was the wholesaler’s average (arithmetic mean) profit per radio?

A. $2 B.$3
C. $4 D.$5
E. $6 60% for a profit of 12 40% for a loss of -3 Ratio is 3:2 between both Now then, 12(3)-3(2)=30 So average 30/5=6 Hence answer is (E) Cheers J Manager  Joined: 06 Mar 2014 Posts: 228 Location: India GMAT Date: 04-30-2015 Re: A wholesaler bought 1,200 radios for$18 each. The  [#permalink]

### Show Tags

VeritasPrepKarishma wrote:
vksunder wrote:
A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for$30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio? A.$2
B. $3 C.$4
D. $5 E.$6

This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks!

Responding to a pm:

Yes, you can use weighted average here. You want to find the average selling price.
60% of radios were sold at $30 and 40% at$15.
Average selling price = (30*0.6 + 15*0.4)/1 = 24
Average cost price = $18 Average profit =$6

VeritasPrepKarishma

I approached this question using weighted average only, but a little variation.

Since we need to find profit/radio.

C1 = $$12 (30-18)$$
C2 =$$-3 (15 - 18)$$

w1 =$$.6$$
w2 = $$.4$$

$$Cavg$$ =$$(12*.6 + (-3) * .4 ) / .6+.4$$

$$Cavg = 6$$

Please let me know if it is alright.
Thank you
Veritas Prep GMAT Instructor D
Joined: 16 Oct 2010
Posts: 9446
Location: Pune, India
Re: A wholesaler bought 1,200 radios for $18 each. The [#permalink] ### Show Tags earnit wrote: VeritasPrepKarishma wrote: vksunder wrote: A wholesaler bought 1,200 radios for$18 each. The wholesaler sold 60 percent of the radios for $30 each and the rest for$15 each. What was the wholesaler’s average (arithmetic mean) profit per radio?

A. $2 B.$3
C. $4 D.$5
E. $6 This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks! Responding to a pm: Yes, you can use weighted average here. You want to find the average selling price. 60% of radios were sold at$30 and 40% at $15. Average selling price = (30*0.6 + 15*0.4)/1 = 24 Average cost price =$18

Average profit = $6 VeritasPrepKarishma I approached this question using weighted average only, but a little variation. Since we need to find profit/radio. C1 = $$12 (30-18)$$ C2 =$$-3 (15 - 18)$$ w1 =$$.6$$ w2 = $$.4$$ $$Cavg$$ =$$(12*.6 + (-3) * .4 ) / .6+.4$$ $$Cavg = 6$$ Please let me know if it is alright. Thank you Yes, you are calculating the weighted average of the profit - that's fine. _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > Manager  Joined: 28 Dec 2013 Posts: 68 Re: A wholesaler bought 1,200 radios for$18 each. The  [#permalink]

### Show Tags

VeritasPrepKarishma wrote:
vksunder wrote:
A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for$30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio? A.$2
B. $3 C.$4
D. $5 E.$6

This is an easy question but I wasnt able to complete it under 2 mins. Is there a shortcut? Thanks!

Responding to a pm:

Yes, you can use weighted average here. You want to find the average selling price.
60% of radios were sold at $30 and 40% at$15.
Average selling price = (30*0.6 + 15*0.4)/1 = 24
Average cost price = $18 Average profit =$6

why do we divide by 1 to get the $24? Target Test Prep Representative G Status: Head GMAT Instructor Affiliations: Target Test Prep Joined: 04 Mar 2011 Posts: 2822 Re: A wholesaler bought 1,200 radios for$18 each. The  [#permalink]

### Show Tags

vksunder wrote:
A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for$30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio? A.$2
B. $3 C.$4
D. $5 E.$6

60% of 1,200 is 0.6 x 1,200 = 720. If these 720 radios are sold for $30 each, they will generate a profit of 720 x (30 - 18) = 720 x 12 =$8,640.

The rest of 1,200 - 720 = 480 radios are sold for $15 each, but they will generate a loss of 480 x (18 - 15) = 480 x 3 =$1,440.

Therefore, the total net profit is 8,640 - 1,440 = $7,200, and thus the average profit per radio is 7,200/1,200 =$6.

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If you find one of my posts helpful, please take a moment to click on the "Kudos" button. Re: A wholesaler bought 1,200 radios for $18 each. The [#permalink] 17 Jul 2018, 16:43 Display posts from previous: Sort by # A wholesaler bought 1,200 radios for$18 each. The  