Last visit was: 23 Apr 2026, 20:24 It is currently 23 Apr 2026, 20:24
Home
Messages
Tests
Schools
Events
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.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
   1   2   3   
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 23 Apr 2026
Posts: 109,785
Own Kudos:
810,878
 [1]
Given Kudos: 105,853
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,785
Kudos: 810,878
 [1]
M03-32 11 Feb 2024, 11:34
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
CoffeeNCream
I think this is a high-quality question and I agree with explanation. I'm sorry Bunuel, I have read this question solution and the discussion probably 50 times.

I am missing something here.

I understand 0.1a - 0.1b = 1000, so a - b = 10000

What I'm struggling with is the "cost price"

5 percent of TOTAL SALES = 1000, thus TOTAL SALES = 20 000

So how are we getting cost price = 20 000?


I saw Bunuel's response to this twice but I'm still at a loss.

Sorry, and thank you.
Show more
­The point is profit and loss are calculated from the cost price, not the sales price. So, a 5% profit of $1000 means we're looking at 5% of the cost price, not the sale price, leading to a total cost of $20,000.
User avatar
spy2206
User avatar
Joined: 24 Nov 2023
Last visit: 11 Apr 2026
Posts: 89
Own Kudos:
8
Given Kudos: 431
Posts: 89
Kudos: 8
M03-32 Updated on: 03 Jun 2024, 07:02
Originally posted by spy2206 on 03 Jun 2024, 00:09.
Last edited by spy2206 on 03 Jun 2024, 07:02, edited 1 time in total.
Kudos
Add Kudos
Bookmarks
Bookmark this Post
.
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 23 Apr 2026
Posts: 109,785
Own Kudos:
810,878
Given Kudos: 105,853
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,785
Kudos: 810,878
M03-32 03 Jun 2024, 00:15
Kudos
Add Kudos
Bookmarks
Bookmark this Post
 
sahitiyalavarthi
I think this is a poor-quality question. This question is from gmat club tests. On the gmat club page, Bunuel only agrees this question is worded wrong. Why are you guys taking so much money (99 dollars) and giving us all not old questions. Yesterday, I saw geometry question. These questions pool is not updated with gmat focus.
Show more

Where did I say that this question is "worded wrong"? The question was recently updated and its wording is fine!

Also, which geometry question did you encounter on the tests?

All quant questions were recently updated, and the tests do not contain any geometry questions.
User avatar
spy2206
User avatar
Joined: 24 Nov 2023
Last visit: 11 Apr 2026
Posts: 89
Own Kudos:
8
Given Kudos: 431
Posts: 89
Kudos: 8
M03-32 03 Jun 2024, 07:13
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel

sahitiyalavarthi
I think this is a poor-quality question. This question is from gmat club tests. On the gmat club page, Bunuel only agrees this question is worded wrong. Why are you guys taking so much money (99 dollars) and giving us all not old questions. Yesterday, I saw geometry question. These questions pool is not updated with gmat focus.
Where did I say that this question is "worded wrong"? The question was recently updated and its wording is fine!

Also, which geometry question did you encounter on the tests?

All quant questions were recently updated, and the tests do not contain any geometry questions.


 
Show more
­I am so sorry Bunuel. I don't know how I landed on the old version of this question which mentions "sale price" and was referring to that. My bad. I am very sorry and I deleted the earlier comment. 

And the question I was referring to was cube and percents. 

Sorry and thank you for your support. ­
User avatar
HarshavardhanR
User avatar
Joined: 16 Mar 2023
Last visit: 23 Apr 2026
Posts: 488
Own Kudos:
576
Given Kudos: 67
Status:Independent GMAT Tutor
Affiliations: Ex - Director, Subject Matter Expertise at e-GMAT
Products:
GMAT Club Tests
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 488
Kudos: 576
M03-32 15 Nov 2024, 05:40
Kudos
Add Kudos
Bookmarks
Bookmark this Post


Harsha
Show Spoiler
Attachment:
GMAT-Club-Forum-ldiial0o.png
GMAT-Club-Forum-ldiial0o.png [ 211.58 KiB | Viewed 267 times ]
User avatar
miag
User avatar
Verbal Forum Moderator
Joined: 10 Dec 2023
Last visit: 15 Feb 2026
Posts: 404
Own Kudos:
159
Given Kudos: 737
Location: India
Concentration: Marketing, Sustainability
Schools: Anderson '26 (A) Haas '26 (A) Kellogg '26 (A)
GMAT Focus 1: 675 Q87 V83 DI80
GPA: 3.2/4
Products:
My Reviews GMAT Club Tests
Expert
Expert reply
Schools: Anderson '26 (A) Haas '26 (A) Kellogg '26 (A)
GMAT Focus 1: 675 Q87 V83 DI80
Posts: 404
Kudos: 159
M03-32 18 Jan 2025, 05:55
Kudos
Add Kudos
Bookmarks
Bookmark this Post
why is it that the sum of cost price = 20,000 here and not sum of sales price? since its total sales? Bunuel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 23 Apr 2026
Posts: 109,785
Own Kudos:
810,878
 [1]
Given Kudos: 105,853
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,785
Kudos: 810,878
 [1]
M03-32 20 Jan 2025, 03:25
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
miag
why is it that the sum of cost price = 20,000 here and not sum of sales price? since its total sales? Bunuel
Show more

Profit and loss are calculated based on the cost price, not the sales price. The question states that the dealership made a 5% overall profit, which is applied to the total cost price of the two cars.

So, the total cost price of the two cars was $20,000, and the 5% profit on this amount equals $1,000. This is why the sum of the cost prices is considered here, not the sales prices.
User avatar
AVMachine
User avatar
Joined: 03 May 2024
Last visit: 26 Mar 2026
Posts: 190
Own Kudos:
154
Given Kudos: 40
Posts: 190
Kudos: 154
M03-32 03 Feb 2025, 16:21
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
A car dealership sold two cars: Car A at a 10% profit and Car B at a 10% loss, resulting into an overall profit of 5% from the two sales. If the dealership's profit from these two cars was $1,000, what was the initial cost of cars A and B?

A. $5,000 and $1,000
B. $9,000 and $5,000
C. $11,000 and $9,000
D. $15,000 and $5,000
E. $20,000 and $10,000
Show more

A(1+10/100) + B(1-10/100) = (A+B)(1+5/100);

Overall Profit: (A+B)(5/100) = 1000

Solve These two equations and you will get your answer as A = 15000; B = 5000;
User avatar
simooo123
User avatar
Joined: 30 Mar 2024
Last visit: 06 Jun 2025
Posts: 5
Own Kudos:
1
 [1]
Posts: 5
Kudos: 1
 [1]
M03-32 04 Feb 2025, 20:07
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I did not quite understand the question and I like the solution - it’s helpful. i think that the question should say what were the initial prices of cars A and B not costs. the word costs makes it confusing as profit margin is calculated on revenue not on costs
User avatar
bb
User avatar
Founder
Joined: 04 Dec 2002
Last visit: 23 Apr 2026
Posts: 43,154
Own Kudos:
83,717
Given Kudos: 24,677
Location: United States
GMAT 1: 750 Q49 V42
GPA: 3
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
GMAT 1: 750 Q49 V42
Posts: 43,154
Kudos: 83,717
M03-32 04 Feb 2025, 20:10
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Thanks for the feedback! I may have written this question a long time ago - sounds like something I would have done.
What if we change it to say "What was the dealer's cost for Cars A and B" - would that clarify the question in your view?

simooo123
I did not quite understand the question and I like the solution - it’s helpful. i think that the question should say what were the initial prices of cars A and B not costs. the word costs makes it confusing as profit margin is calculated on revenue not on costs
Show more
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 23 Apr 2026
Posts: 109,785
Own Kudos:
810,878
Given Kudos: 105,853
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,785
Kudos: 810,878
M03-32 04 Feb 2025, 23:47
Kudos
Add Kudos
Bookmarks
Bookmark this Post
bb
Thanks for the feedback! I may have written this question a long time ago - sounds like something I would have done.
What if we change it to say "What was the dealer's cost for Cars A and B" - would that clarify the question in your view?

simooo123
I did not quite understand the question and I like the solution - it’s helpful. i think that the question should say what were the initial prices of cars A and B not costs. the word costs makes it confusing as profit margin is calculated on revenue not on costs
Show more

I think the question is fine as it is. Also, profit and loss are calculated based on the cost price, not the sales price.
User avatar
simooo123
User avatar
Joined: 30 Mar 2024
Last visit: 06 Jun 2025
Posts: 5
Own Kudos:
1
Posts: 5
Kudos: 1
M03-32 05 Feb 2025, 07:35
Kudos
Add Kudos
Bookmarks
Bookmark this Post
My understunding is that when it says at a 10% profit it means that the product what sold at let's say 15000 and the profit was 1500 which is 10% of 15000 which means that cost accounted to 15000-1500 = 13500.
I think that the question asking for costs makes it confusing as it is actually asking for the sale price
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 23 Apr 2026
Posts: 109,785
Own Kudos:
810,878
Given Kudos: 105,853
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,785
Kudos: 810,878
M03-32 05 Feb 2025, 07:38
Kudos
Add Kudos
Bookmarks
Bookmark this Post
simooo123
My understunding is that when it says at a 10% profit it means that the product what sold at let's say 15000 and the profit was 1500 which is 10% of 15000 which means that cost accounted to 15000-1500 = 13500.
I think that the question asking for costs makes it confusing as it is actually asking for the sale price
Show more

I tried explaining several times in this thread:

Profit and loss are calculated based on the cost price, not the sales price. The question states that the dealership made a 5% overall profit, which is applied to the total cost price of the two cars.
User avatar
simooo123
User avatar
Joined: 30 Mar 2024
Last visit: 06 Jun 2025
Posts: 5
Own Kudos:
1
Posts: 5
Kudos: 1
M03-32 05 Feb 2025, 07:47
Kudos
Add Kudos
Bookmarks
Bookmark this Post
simooo123
My understunding is that when it says at a 10% profit it means that the product what sold at let's say 15000 and the profit was 1500 which is 10% of 15000 which means that cost accounted to 15000-1500 = 13500.
I think that the question asking for costs makes it confusing as it is actually asking for the sale price
Show more
never mind i checked I had a misunderstunding of what at a 10% profit meant. It actually means 10% markup above the cost of the good.
User avatar
simooo123
User avatar
Joined: 30 Mar 2024
Last visit: 06 Jun 2025
Posts: 5
Own Kudos:
1
Posts: 5
Kudos: 1
M03-32 05 Feb 2025, 07:56
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
simooo123
My understunding is that when it says at a 10% profit it means that the product what sold at let's say 15000 and the profit was 1500 which is 10% of 15000 which means that cost accounted to 15000-1500 = 13500.
I think that the question asking for costs makes it confusing as it is actually asking for the sale price

I tried explaining several times in this thread:

Profit and loss are calculated based on the cost price, not the sales price. The question states that the dealership made a 5% overall profit, which is applied to the total cost price of the two cars.
Show more
I think this misunderstunding stems from the general idea that profit margin is calculated over revenue: profit/revenue *100

but in this cause when it says "at a profit of" it is calculated on costs of purchase of the good rather than on revenue
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 23 Apr 2026
Posts: 109,785
Own Kudos:
810,878
Given Kudos: 105,853
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,785
Kudos: 810,878
M03-32 05 Feb 2025, 07:59
Kudos
Add Kudos
Bookmarks
Bookmark this Post
simooo123
Bunuel
simooo123
My understunding is that when it says at a 10% profit it means that the product what sold at let's say 15000 and the profit was 1500 which is 10% of 15000 which means that cost accounted to 15000-1500 = 13500.
I think that the question asking for costs makes it confusing as it is actually asking for the sale price

I tried explaining several times in this thread:

Profit and loss are calculated based on the cost price, not the sales price. The question states that the dealership made a 5% overall profit, which is applied to the total cost price of the two cars.
I think this misunderstunding stems from the general idea that profit margin is calculated over revenue: profit/revenue *100

but in this cause when it says "at a profit of" it is calculated on costs of purchase of the good rather than on revenue
Show more

Profit and profit margin are different:

• Profit percentage is calculated based on cost price:
Profit Percentage = (Profit / Cost Price) * 100

• Profit margin is calculated based on selling price (revenue):
Profit Margin = (Profit / Revenue) * 100
User avatar
Backoftheclass
User avatar
Joined: 12 Dec 2024
Last visit: 10 Apr 2025
Posts: 7
Given Kudos: 13
Posts: 7
Kudos: 0
M03-32 08 Feb 2025, 22:22
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I like the solution - it’s helpful.
User avatar
MoeKo
User avatar
Joined: 12 Feb 2025
Last visit: 30 Mar 2025
Posts: 14
Own Kudos:
1
Given Kudos: 169
Posts: 14
Kudos: 1
M03-32 17 Mar 2025, 09:15
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I like the solution - it’s helpful.
User avatar
adityaprateek15
User avatar
Joined: 26 May 2023
Last visit: 23 Apr 2026
Posts: 346
Own Kudos:
170
Given Kudos: 323
Location: India
Schools: Ross '26 Tepper '26 McCombs '26
GPA: 2.7
Products:
Forum Quiz
Schools: Ross '26 Tepper '26 McCombs '26
Posts: 346
Kudos: 170
M03-32 17 Apr 2025, 11:56
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I like the solution - it’s helpful.
User avatar
Philp9
User avatar
Joined: 09 Apr 2025
Last visit: 25 Mar 2026
Posts: 1
Given Kudos: 6
Location: Brazil
Schools: Wharton
Schools: Wharton
Posts: 1
Kudos: 0
M03-32 21 Apr 2025, 07:30
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I like the solution - it’s helpful.
   1   2   3   
Moderators:
Bunuel
Math Expert
109785 posts
bb
Founder
43154 posts