GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 17 Feb 2019, 10:47

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 in February
PrevNext
SuMoTuWeThFrSa
272829303112
3456789
10111213141516
17181920212223
242526272812
Open Detailed Calendar
  • Free GMAT Algebra Webinar

     February 17, 2019

     February 17, 2019

     07:00 AM PST

     09:00 AM PST

    Attend this Free Algebra Webinar and learn how to master Inequalities and Absolute Value problems on GMAT.
  • Valentine's day SALE is on! 25% off.

     February 18, 2019

     February 18, 2019

     10:00 PM PST

     11:00 PM PST

    We don’t care what your relationship status this year - we love you just the way you are. AND we want you to crush the GMAT!

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

 
Math Revolution GMAT Instructor
User avatar
V
Joined: 16 Aug 2015
Posts: 6949
GMAT 1: 760 Q51 V42
GPA: 3.82
Premium Member
If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

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

Difficulty:

  15% (low)

Question Stats:

74% (01:22) correct 26% (01:51) wrong based on 154 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%

_________________

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.
"Only $149 for 3 month Online Course"
"Free Resources-30 day online access & Diagnostic Test"
"Unlimited Access to over 120 free video lessons - try it yourself"

Math Expert
User avatar
V
Joined: 02 Aug 2009
Posts: 7334
Premium Member Reviews Badge
Re: If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

New post 07 Sep 2017, 01:36
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
_________________

1) Absolute modulus : http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
2)Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html
3) effects of arithmetic operations : https://gmatclub.com/forum/effects-of-arithmetic-operations-on-fractions-269413.html
4) Base while finding % increase and % decrease : https://gmatclub.com/forum/percentage-increase-decrease-what-should-be-the-denominator-287528.html


GMAT Expert

Director
Director
User avatar
D
Joined: 04 Dec 2015
Posts: 740
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, 07:09
3
1
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. :-)
Retired Moderator
User avatar
V
Status: Preparing for GMAT
Joined: 25 Nov 2015
Posts: 989
Location: India
GPA: 3.64
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

New post 07 Sep 2017, 08:01
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)
_________________

Please give kudos, if you like my post

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

Math Revolution GMAT Instructor
User avatar
V
Joined: 16 Aug 2015
Posts: 6949
GMAT 1: 760 Q51 V42
GPA: 3.82
Premium Member
Re: If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

New post 10 Sep 2017, 17:24
=>
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.
"Only $149 for 3 month Online Course"
"Free Resources-30 day online access & Diagnostic Test"
"Unlimited Access to over 120 free video lessons - try it yourself"

Senior Manager
Senior Manager
User avatar
S
Status: love the club...
Joined: 24 Mar 2015
Posts: 273
Re: If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

New post 12 Sep 2017, 01:49
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 ..
Current Student
User avatar
P
Joined: 02 Jul 2017
Posts: 293
Concentration: Entrepreneurship, Technology
GMAT 1: 730 Q50 V38
GMAT ToolKit User
Re: If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

New post 12 Sep 2017, 02:34
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
Target Test Prep Representative
User avatar
G
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2827
Re: If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

New post 15 Sep 2017, 09:11
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

Manager
Manager
avatar
B
Joined: 12 Apr 2017
Posts: 59
Location: United States
Concentration: Finance, Operations
GPA: 3.1
Re: If the gross profit of a certain company is 20 percent of the revenue  [#permalink]

Show Tags

New post 30 Jan 2019, 11:45
It helps to know
Revenue 100%
less: cost 80%
---------
Gross Profit 20%

Question what is Gross Profit as a % of cost = 20% /80% = 1/4 = 25%
GMAT Club Bot
Re: If the gross profit of a certain company is 20 percent of the revenue   [#permalink] 30 Jan 2019, 11:45
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  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| 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®.