Last visit was: 12 Jul 2025, 11:45 It is currently 12 Jul 2025, 11:45
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
User avatar
jade3
Joined: 19 Nov 2007
Last visit: 27 Dec 2010
Posts: 96
Own Kudos:
884
 [29]
Given Kudos: 1
Posts: 96
Kudos: 884
 [29]
2
Kudos
Add Kudos
26
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
h2polo
Joined: 13 Aug 2009
Last visit: 08 Mar 2012
Posts: 102
Own Kudos:
364
 [8]
Given Kudos: 16
Posts: 102
Kudos: 364
 [8]
4
Kudos
Add Kudos
4
Bookmarks
Bookmark this Post
General Discussion
User avatar
pierrealexandre77
Joined: 10 Sep 2009
Last visit: 26 Nov 2009
Posts: 32
Own Kudos:
365
 [2]
Given Kudos: 10
Posts: 32
Kudos: 365
 [2]
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
amit2k9
Joined: 08 May 2009
Last visit: 18 Jun 2017
Posts: 538
Own Kudos:
Given Kudos: 10
Status:There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Posts: 538
Kudos: 624
Kudos
Add Kudos
Bookmarks
Bookmark this Post
profit '95 = 1000*40 - 1000*30= 10,000
profit '96 = 800 * 50 - 800 *30 = 16,000
Thus difference = 6000.B
avatar
strateGmat
Joined: 13 Jan 2018
Last visit: 22 Jul 2022
Posts: 2
Own Kudos:
1
 [1]
Given Kudos: 38
Posts: 2
Kudos: 1
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hello, I was uncertain about Gross Profit and Net Profit. I chose Answer A, "0" because the sales in 1995 was 40,000.
1000 * 40 = 40,000
In 1996 sales was also 40,000. 800 * 50 = 40,000. So there was no difference. I thought that was Gross profit.

My thinking is that NET profit is the one that would factor on the initial cost of buying all for $30 each.
Thus the NET profit in 1995 is $10 profit * 1000 = $10,000
ANd NET profit in 1996 is $20 * 800 = $16,000

When do I use NET profit vs GROSS profit?
User avatar
ScottTargetTestPrep
User avatar
Target Test Prep Representative
Joined: 14 Oct 2015
Last visit: 11 Jul 2025
Posts: 21,091
Own Kudos:
26,143
 [1]
Given Kudos: 296
Status:Founder & CEO
Affiliations: Target Test Prep
Location: United States (CA)
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 21,091
Kudos: 26,143
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
jade3
In 1995 a certain store had 1,800 tools in stock that had been purchased for $30 each. If 1,000 of these tools were sold in 1995 for $40 each and the remaining 800 were sold in 1996 for $50 each, how many greater was the gross profit on the tools sold in 1996 than the gross profit on those sold in 1995?

A. $0
B. $6,000
C. $8,000
D. $32,000
E. $40,000

We can create the expression:

(800 x 50 - 800 x 30) - (1000 x 40 - 1000 x 30)

800(50 - 30) - 1000(40 - 30)

16000 - 10000 = 6,000

Answer: B
User avatar
shyam30
Joined: 20 Feb 2019
Last visit: 26 Aug 2021
Posts: 5
Own Kudos:
Given Kudos: 95
Location: Viet Nam
Concentration: Social Entrepreneurship, Nonprofit
GPA: 2
Posts: 5
Kudos: 10
Kudos
Add Kudos
Bookmarks
Bookmark this Post
"how many greater was the gross profit"

How can this be an OG question?

Posted from my mobile device
User avatar
MathRevolution
User avatar
Math Revolution GMAT Instructor
Joined: 16 Aug 2015
Last visit: 27 Sep 2022
Posts: 10,078
Own Kudos:
18,736
 [2]
Given Kudos: 4
GMAT 1: 760 Q51 V42
GPA: 3.82
Expert
Expert reply
GMAT 1: 760 Q51 V42
Posts: 10,078
Kudos: 18,736
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
1995 cost price: 1,000 * 30 = 30,000 and 800 * 30 = 24,000

1995 selling price: 1,000 * 40 = 40,000

Profit 1995: 40,000 - 30,000 = 10,000



1996 selling price: 800 * 50 = 40,000

Profit 1996: 40,000 - 24,000 = 16,000



Profit 1996 - 1995: 16,000 - 10,000 = 6,000

Answer B
User avatar
DanTheGMATMan
Joined: 02 Oct 2015
Last visit: 11 Jul 2025
Posts: 353
Own Kudos:
Given Kudos: 9
Expert
Expert reply
Posts: 353
Kudos: 168
Kudos
Add Kudos
Bookmarks
Bookmark this Post
­Straightforward. One gross profit minus another:

User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 37,371
Own Kudos:
Posts: 37,371
Kudos: 1,010
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Moderators:
Math Expert
102636 posts
PS Forum Moderator
688 posts