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If the total cost of 20 pairs of shoes is equal to the total revenue g

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If the total cost of 20 pairs of shoes is equal to the total revenue generated from the sale of 25 pairs of shoes, what is the percent of profit or loss made on the sale of each pair of shoes, assuming each pair of shoes cost the same dollar amount and each pair of shoes sold for the same dollar amount?

A 25% loss
B 25% profit
C 20% loss
D 20% profit
E 5% profit
[Reveal] Spoiler: OA

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If the total cost of 20 pairs of shoes is equal to the total revenue g [#permalink]

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New post 10 Sep 2017, 10:54
If the total cost of 20 pairs of shoes is equal to the total revenue generated from the sale of 25 pairs of shoes, what is the percent of profit or loss made on the sale of each pair of shoes, assuming each pair of shoes cost the same dollar amount and each pair of shoes sold for the same dollar amount?

A 25% loss
B 25% profit
C 20% loss
D 20% profit
E 5% profit



Cost of 20 = Rev of 25

100 = 100. Therefore cost of making a shoe is 5 (100/20) and revenue of a shoe is 4 (100/25).
With an average cost of 5 and revenue of 4 per shoe, eliminate B,D,E. These are profits when this scenario involves loss.
The loss is 1. 1/5 equals the loss as a percent of sale. There C is correct.

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Re: If the total cost of 20 pairs of shoes is equal to the total revenue g [#permalink]

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New post 15 Sep 2017, 00:44
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Cost of 1 shoe =C
Revenue generate from 1 shoe = R

as given : 20*C =25*R
=> \(R = \frac{4}{5}C\)
profit/loss % =\(\frac{R-C}{C}*100 = \frac{\frac{4}{5}C -C}{C}*100 = \frac{-1}{5}*100\) = -20% = 20% loss

Answer: C

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If the total cost of 20 pairs of shoes is equal to the total revenue g [#permalink]

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New post 15 Sep 2017, 09:51
SajjadAhmad wrote:
If the total cost of 20 pairs of shoes is equal to the total revenue generated from the sale of 25 pairs of shoes, what is the percent of profit or loss made on the sale of each pair of shoes, assuming each pair of shoes cost the same dollar amount and each pair of shoes sold for the same dollar amount?

A 25% loss
B 25% profit
C 20% loss
D 20% profit
E 5% profit

Pick a multiple of 20 and 25 for the total cost and the total revenue, because they are equal, such that when the total amount is divided by the number of pairs, the result will be a round number.

Total cost (for 20) = $200
Total revenue (for 25) = $200

COST per pair of shoes:
$200/20 = $10

REVENUE per pair of shoes:
$200/25 = $8

Profit per pair = Revenue per pair - cost per pair

Assess loss or gain. Different methods:

1. Revenue < Cost = Loss. If he sold for $8 and his cost was $10, he sold at 80% of cost. He lost 20%.

2. Change/original * 100

Profit per pair is
$8 - $10 = -$2 per pair
He lost money.

Percent decrease: \(\frac{Change}{original}\) * 100

\(\frac{-2}{10}\) * 100 = (-20%)

3. (New - Old)/Old * 100:

\(\frac{(New - Old)}{Old}\) * 100 =

\(\frac{(8-10)}{10}\) * 100 =

(-.20) * 100 = (-20%) = 20% loss

ANSWER C

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Re: If the total cost of 20 pairs of shoes is equal to the total revenue g [#permalink]

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New post 15 Sep 2017, 10:08
Cost of 20 pairs of shoes = Sales from 25 pairs of shoes

CP x 20 = SP x 25

SP/CP = 20/25 = 4/5 = 0.8 = 80% which means 20% loss.

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Re: If the total cost of 20 pairs of shoes is equal to the total revenue g [#permalink]

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New post 21 Sep 2017, 14:51
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SajjadAhmad wrote:
If the total cost of 20 pairs of shoes is equal to the total revenue generated from the sale of 25 pairs of shoes, what is the percent of profit or loss made on the sale of each pair of shoes, assuming each pair of shoes cost the same dollar amount and each pair of shoes sold for the same dollar amount?

A 25% loss
B 25% profit
C 20% loss
D 20% profit
E 5% profit


We can let c = cost per pair of shoes and r = revenue per pair of shoes, and thus:

20c = 25r

4c = 5r

4c/5 = r

Thus:

Profit = r - c

Profit = 4c/5 - c

Profit = 4c/5 - 5c/5

Profit = -c/5 = -(1/5)c

Thus, we see a loss of 20%.

Answer: C
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Re: If the total cost of 20 pairs of shoes is equal to the total revenue g   [#permalink] 21 Sep 2017, 14:51
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