A souvenir vendor purchased 1,000 shirts for a special event at a pric

Question

A souvenir vendor purchased 1,000 shirts for a special event at a price of $5 each. The vendor sold 600 of the shirts on the day of the event for $12 each and 300 of the shirts in the week following the event for $4 each. The vendor was unable to sell the remaining shirts. What was the vendor's gross profit on the sale of these shirts?

A. $1,000
B. $2,200
C. $2,700
D. $3,000
E. $3,400

NEW question from GMAT® Quantitative Review 2019

(PS11468)

A. $1,000
B. $2,200
C. $2,700
D. $3,000
E. $3,400

NEW question from GMAT® Quantitative Review 2019 
(PS11468)

Bismarck · Answer

OA:E
 Cost = 1000*5 =5000 
 Revenue = 600*12 + 300*4 = 7200+1200=8400 
 Gross profit = Revenue -Cost = 8400-5000=3400 Dollars

ScottTargetTestPrep · Answer

The cost to the vendor for the shirts was 1,000 x 5 = $5,000.

Revenue from sales was 600 x 12 + 300 x 4 = 7200 + 1200 = $8,400.

Thus, the gross profit = revenue - cost = $8,400 - $5,000 = $3,400.

Answer: E

GeorgeKo111 · Answer

hello,

given: purchased 1000 shirts each for 5$, we have a total cost of 5000$

600 shirts were sold for 12 dollars each so 600*12=7200$

300 shirts were sold for 4$ each so 300*4=1200$

total revenue= 7200$+1200$=8400$

gross profit= 8400$-5000$=3400$

EgmatQuantExpert · Answer

Solution

Given:  
 • A souvenir vendor purchased 1,000 shirts for a special event at a price of $5 each.
• The vendor sold 600 of the shirts on the day of the event for $12 each.
 o And, 300 of the shirts in the week following the event for $4 each. 
• The vendor was unable to sell the remaining shirts

To find:  
 • Vendor's gross profit on the sale of these shirts
 
  Approach and Working:  
 • Vendor Cost price for buying the shirts = 1000 * 5 = $5000
• Total selling price of purchasing the shirts = 600 *12 +300 *4 =7200 +1200 = $8400 
Hence, gross profit = Total selling price – Total cost price = 8400 -5000 =$3,400

Hence, the correct answer is option E.
 
  Answer: E

ScottTargetTestPrep · Answer

The gross profit is:

600 x 12 + 300 x 4 - 1,000 x 5 = 7200 + 1200 - 5000 = 8400 - 5000 = 3400

Answer: E

Nipungupta9081 · Answer

Answer E

1000 shirts * 5 each = 5000 total cost for shirts

out of 1000 shopkeeper sold ( Revenue ) = 600 * 12 + 300 * 4 
 = 7200 + 1200 
 = 8400
Gross Profit = Revenue - Cost
 = 8400 - 5000 
 = 3400

hkkat · Answer

1000 units ,$5 each ( cost)

sold 600 for $12 each

600 *12 - 600*5 = 4200

sold 300 for $4 each

300*4 - 300*5 = -300

gross profit:

4200 - 300 - 100*5 = 3900
 ^ the remaining 100 at the cost of $5 each

MHIKER · Answer

Bunuel  and all experts

According to the Accounting formula
Gross Profit = Revenue (sales) - Cost of goods sold (100 units were not sold)
In this problem cost of goods sold is 5*900=4500, and total revenue is $8400
So, the Gross profit should be $3900, which is not among the answer choices. 
Why is GMAT differing from an established way of calculation?

AnirudhaS · Answer

cost price = $5*1000 = $5000
sell price = ($12*600)+($4*300)=$7200 + $1200 = $8400
profit = $8400-$5000=$3400

Answer:  E

MBAHOUSE · Answer

To calculate the vendor's gross profit, we need to calculate the total revenue from shirt sales and then subtract the total cost of purchasing the shirts.

1. Revenue from shirts sold on the day of the event:
Number of shirts sold = 600
Selling price per shirt = $12
Total revenue = 600 shirts x $12/shirt = $7200

2. Revenue from shirts sold in the week following the event:
Number of shirts sold = 300
Selling price per shirt = $4
Total revenue = 300 shirts x $4/shirt = $1200

3. Total revenue from all shirts sold:
Total revenue = $7200 + $1200 = $8400

Now, let's calculate the cost of purchasing all the shirts:
Number of shirts purchased = 1000
Cost per shirt = $5
Total cost = 1000 shirts x $5/shirt = $5000

Finally, calculate the gross profit:
Gross profit = Total revenue - Total cost = $8400 - $5000 = $3400

So, the vendor's gross profit on the sale of these shirts is $3400.

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A souvenir vendor purchased 1,000 shirts for a special event at a pric

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