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# Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$

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Intern
Joined: 03 Oct 2012
Posts: 34
Location: India
WE: Brand Management (Pharmaceuticals and Biotech)
Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$  [#permalink]

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13 Dec 2017, 05:58
1
2
00:00

Difficulty:

75% (hard)

Question Stats:

48% (03:03) correct 52% (02:19) wrong based on 45 sessions

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Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$. He earned 25% profit on this sale. Next day he sold 20 toys without any discount. what is his gross profit in two days?

a) 240 \$
b) 360 \$
c) 480 \$
d) 510 \$
e) 550 \$

Question Source: Expert's Global practice test
Math Expert
Joined: 02 Sep 2009
Posts: 53709
Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$  [#permalink]

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13 Dec 2017, 06:16
JackMasterNone wrote:
Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$. He earned 25% profit on this sale. Next day he sold 20 toys without any discount. what is his gross profit in two days?

a) 240 \$
b) 360 \$
c) 480 \$
d) 510 \$
e) 550 \$

Question Source: Expert's Global practice test

He earned 25% profit --> cost of 15 toys = \$600/1.25 = \$480 (cost*1.25 = sales). So, cost of 1 toy = \$480/15 = \$32.

Profit from 15 toys = \$600 - \$480 = \$120.

Undiscounted price for 15 toys = \$600/0.8 = \$750.
Undiscounted price for 20 toys = \$750*20/15 = \$1,000.

Profit from 20 toys = \$1,000 - \$32*20 = \$360.

Total profit = \$120 + \$360 = \$480.

_________________
Intern
Joined: 03 Dec 2017
Posts: 5
Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$  [#permalink]

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13 Dec 2017, 06:42
First day:
Total Revenues = 600
Price = 600/15 = 40
Total Cost = Total Revenes * (1-0,25) = 600*0,75 = 450
Cost per unit = 450/15=30
Total Profit = 600-450=150

Second day:
Price = 40/(1-discount) = 40/0.8 = 50
Cost per unit = 30
Total revenues = 20*50=1000
Total cost=20*30=600
Total profit = 1000-600=400

Profit of two days = 150+400=550
Option E
Intern
Joined: 24 Nov 2016
Posts: 32
Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$  [#permalink]

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13 Dec 2017, 07:38
revenue = price x qt

Day 1

600 = 0,8p x 15
P = 50

Profit = revenue - cost, but as the exercise stated that the profit is 25% of sales I assumed a profit of \$ 150

Day 2

50 x 20 = 1000

Profit = 250

Total Profit = \$ 400

Why it didn't work?

i didnt' get the formula that Bunuel applied
Intern
Joined: 19 Jan 2012
Posts: 1
Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$  [#permalink]

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13 Dec 2017, 12:47
The wording should be clarified: 25% profit on this sale --> 25% profit on the cost he paid for the toys. In this case, 1.25 x cost = 600, cost = 480 and profit is 600 - 480 = 120 for day 1.

Sent from my iPhone using GMAT Club Forum mobile app
Jack gave 20% discount on sale of 15 toys & generated revenue of 600\$   [#permalink] 13 Dec 2017, 12:47
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