It is currently 21 Oct 2017, 18:26

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

If the gross profit of a certain company is 20 percent of the revenue

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Expert Post
Math Revolution GMAT Instructor
User avatar
P
Joined: 16 Aug 2015
Posts: 4142

Kudos [?]: 2902 [0], given: 0

GPA: 3.82
Premium Member CAT Tests
If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 07 Sep 2017, 01:50
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

67% (01:10) correct 33% (01:25) wrong based on 82 sessions

HideShow timer Statistics

[GMAT math practice question]

If the gross profit of a certain company is 20 percent of the revenue from sales of the company, what percent of the cost is the gross profit?

A. 20%
B. 25%
C. 30%
D. 35%
E. 40%
[Reveal] Spoiler: OA

_________________

MathRevolution: Finish GMAT Quant Section with 10 minutes to spare
The one-and-only World’s First Variable Approach for DS and IVY Approach for PS with ease, speed and accuracy.
Find a 10% off coupon code for GMAT Club members.
“Receive 5 Math Questions & Solutions Daily”
Unlimited Access to over 120 free video lessons - try it yourself
See our Youtube demo

Kudos [?]: 2902 [0], given: 0

Expert Post
Math Forum Moderator
avatar
P
Joined: 02 Aug 2009
Posts: 4986

Kudos [?]: 5507 [0], given: 112

Re: If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 07 Sep 2017, 02:36
MathRevolution wrote:
[GMAT math practice question]

If the gross profit of a certain company is 20 percent of the revenue from sales of the company, what percent of the cost is the gross profit?

A. 20%
B. 25%
C. 30%
D. 35%
E. 40%



Hi..

Be careful in such Q about the Cost, SP and on what will be the profit..
Profit =p
SP=s
Cost price=c
So s=p+c.... But p=20% of s=0.2s..
Substitute in equation
So s=0.2s+c.........c=s-0.2s=0.8s..
Profit/cost = 100*0.2s/0.8s=100/4=25%

B
_________________

Absolute modulus :http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html

Kudos [?]: 5507 [0], given: 112

2 KUDOS received
Director
Director
User avatar
P
Joined: 04 Dec 2015
Posts: 696

Kudos [?]: 303 [2], given: 261

Location: India
Concentration: Technology, Strategy
Schools: ISB '19, IIMA , IIMB, XLRI
WE: Information Technology (Consulting)
GMAT ToolKit User
Re: If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 07 Sep 2017, 08:09
2
This post received
KUDOS
1
This post was
BOOKMARKED
MathRevolution wrote:
[GMAT math practice question]

If the gross profit of a certain company is 20 percent of the revenue from sales of the company, what percent of the cost is the gross profit?

A. 20%
B. 25%
C. 30%
D. 35%
E. 40%

Method 1: Profit (\(P\)) \(=\) Sales price (\(S\)) \(-\) Cost price (\(C\))

Given, Profit \((P)\) is \(20\)% of Revenue from sales (ie; sales price) \(= \frac{20}{100}*S = \frac{1}{5}S\)

Substituting value of \(P\) in Profit equation we get;

\(\frac{1}{5}S = S - C\)

\(C = S - \frac{1}{5}S = \frac{5S-1S}{5} = \frac{4}{5}S\)
Required Percentage \(= (\frac{P}{C}) * 100 = (\frac{\frac{1}{5}S}{\frac{4}{5}S}) * 100 = \frac{100}{4} = 25\)%

Method 2: Profit (\(P\)) \(=\) Sales price (\(S\)) \(-\) Cost price (\(C\))

Let \(S = 100\)

Given \(P\) is \(20\)% of \(S = \frac{20}{100} * 100 = 20\)

\(P = S - C\)

\(20 = 100 - C\)

\(C = 100 - 20 = 80\)

Required percentage \(= (\frac{P}{C}) * 100 = \frac{20}{80} * 100 = \frac{100}{4} = 25\)%

Answer (B)...

_________________
Please Press "+1 Kudos" to appreciate. :-)

Kudos [?]: 303 [2], given: 261

Senior Manager
Senior Manager
User avatar
S
Joined: 25 Nov 2015
Posts: 254

Kudos [?]: 71 [0], given: 245

Location: India
GPA: 3.64
WE: Engineering (Energy and Utilities)
GMAT ToolKit User Premium Member Reviews Badge
If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 07 Sep 2017, 09:01
MathRevolution wrote:
[GMAT math practice question]

If the gross profit of a certain company is 20 percent of the revenue from sales of the company, what percent of the cost is the gross profit?

A. 20%
B. 25%
C. 30%
D. 35%
E. 40%



Let S-Sale, C=Cost
Profit P=\(\frac{20}{100}\)S
therefore S - C = \(\frac{20}{100}\) S
\(\frac{S}{C}= \frac{10}{8}\)
Profit % = \(\frac{(S-C)}{C}\) x 100 =(\(\frac{10}{8}\)-1) x 100= 25% (B)
_________________

When the going gets tough, the tough gets going...

Kudos [?]: 71 [0], given: 245

Expert Post
Math Revolution GMAT Instructor
User avatar
P
Joined: 16 Aug 2015
Posts: 4142

Kudos [?]: 2902 [0], given: 0

GPA: 3.82
Premium Member CAT Tests
Re: If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 10 Sep 2017, 18:24
=>
Let R be the revenue of the company. The profit is 0.2*R and the cost is 0.8*R.
The answer is (0.2*R) / (0.8*R) * 100 = 0.25 * 100 = 25(%).

Ans: B
_________________

MathRevolution: Finish GMAT Quant Section with 10 minutes to spare
The one-and-only World’s First Variable Approach for DS and IVY Approach for PS with ease, speed and accuracy.
Find a 10% off coupon code for GMAT Club members.
“Receive 5 Math Questions & Solutions Daily”
Unlimited Access to over 120 free video lessons - try it yourself
See our Youtube demo

Kudos [?]: 2902 [0], given: 0

Manager
Manager
User avatar
B
Status: love the club...
Joined: 24 Mar 2015
Posts: 178

Kudos [?]: 14 [0], given: 415

Re: If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 12 Sep 2017, 02:49
MathRevolution wrote:
[GMAT math practice question]

If the gross profit of a certain company is 20 percent of the revenue from sales of the company, what percent of the cost is the gross profit?

A. 20%
B. 25%
C. 30%
D. 35%
E. 40%


say sales price = 100
profit = 20
cost = 80

% = 20/80 x 100
25 %

hope this helps ..
cheers ..

Kudos [?]: 14 [0], given: 415

Senior Manager
Senior Manager
User avatar
G
Joined: 02 Jul 2017
Posts: 252

Kudos [?]: 59 [0], given: 60

Location: India
GMAT ToolKit User CAT Tests
Re: If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 12 Sep 2017, 03:34
Let Profit P, revenue R and Cost C
So as Profit= Revenue -Cost
P=R-C

Given P= 20% of R = 20/100 * R =R/5 => R=5P

Putting in above equation => P =5P-C => C=4P => P=C/4
=> P= 25/100 * C
=> P = 25% of C

Answer: B

Kudos [?]: 59 [0], given: 60

Expert Post
Target Test Prep Representative
User avatar
S
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 1545

Kudos [?]: 837 [0], given: 5

Re: If the gross profit of a certain company is 20 percent of the revenue [#permalink]

Show Tags

New post 15 Sep 2017, 10:11
MathRevolution wrote:
[GMAT math practice question]

If the gross profit of a certain company is 20 percent of the revenue from sales of the company, what percent of the cost is the gross profit?

A. 20%
B. 25%
C. 30%
D. 35%
E. 40%



Recall that profit = revenue - cost. Letting r = revenue and c = cost, we can create the following equation:

Profit = 0.2r

r - c = 0.2r

0.8r = c

Thus, gross profit is 0.2r/0.8r = 1/4 = 25% of cost.

Answer: B
_________________

Jeffery Miller
Head of GMAT Instruction

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Kudos [?]: 837 [0], given: 5

Re: If the gross profit of a certain company is 20 percent of the revenue   [#permalink] 15 Sep 2017, 10:11
Display posts from previous: Sort by

If the gross profit of a certain company is 20 percent of the revenue

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.