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

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Bombsante
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Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   13 Dec 2017, 05:58
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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
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C
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Bunuel
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Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   13 Dec 2017, 06:16
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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.

Answer: C.
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patriciadfer
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Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   13 Dec 2017, 06:42
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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
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JouviMat
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Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   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
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Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   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.


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Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   22 Jul 2021, 03:03
This is a very tricky question in the sense that it mentioned Gross profit on cost and not on sales. We are more used to using GP% over sales.

GP% (when given on sales) = (Sales-Cost)/Sales
GP% (when given on cost) = (Sales-Cost)/Cost

Substituting the values, we'll get the cost price as $32, and further the question can be solved.
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Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   29 Sep 2023, 10:40
Bombsante 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

R = 600/15 = 40

MP = 40/80*100 = 50

CP = 40/125*100 = 32

CP_15 = 15*32 ; CP_20 = 20*32 CP_35 = 1120

SP_20 = 50*20

SP_35 = 600 + 1000 = 1600

P is (1600 - 1120) = 480, Answer must be (C)
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Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink] New post   29 Sep 2023, 11:03
Easiest way to solve is 600/15=40 after discount price
Before discount price - 40/0.8=50
in first part profit per piece is 40-32=8
32 is calculated through as 40 is sp and cp is 40/1.25=32
Now profit is 8*15= 120
And In second part sp is 50 and profit is 18
18*20=360
Total p-360+120=480

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Re: Jack gave 20% discount on sale of 15 toys & generated revenue of 600$ [#permalink]
29 Sep 2023, 11:03
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