A retailer purchased eggs at $2.80 per dozen and sold the eggs at 3 eg

Question

A retailer purchased eggs at $2.80 per dozen and sold the eggs at 3 eggs for $0.90. What was the retailer's gross profit from purchasing and selling 5 dozen eggs? (1 dozen eggs = 12 eggs)

A. $0.90
 
B. $2.40
 
C. $4.00
 
D. $11.30
 
E. $12.00

NEW question from GMAT® Official Guide 2019 
(PS09707)

Iakovos1995 · Accepted Answer

The cost for the 5 dozens equals 5*2.8=14
From a dozen, the retailer can create 4 packages of 3 eggs. Hence, the profit from selling the 5 dozens equals 0.9*4*5=18

Gross Profit = Revenue - Cost = 18 - 14 = 4

The correct answer is C.

Mega1234 · Answer

Cost price of 1 dozen = $2.8
Selling price of 1 dozen =$0.9*12/3 = $3.6

Profit on 1 dozen = $0.8

Profit on 5 dozens = $0.8*5 = $4; option C

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KSBGC · Answer

we know,

Selling price - cost price = profit

cost price :

per dozen cost price is given but we are asked to find out the profit of 5 dozen.

5*2.80 = 14.00.

Selling price:

selling price of 3 eggs has given. We know 1 dozen = 12 eggs.

(12/3)*0.90 = 3.60., the price of 1 dozen.

3.60*5 = 18.00 , the price of 5 dozen.

Profit = 18 - 14 = 4

Thus the best answer is C.

magbot · Answer

Selling price of 3 eggs -> 3x = .90
Selling price of 12 -> 12x = 3.60
Cost of 12 -> 2.80
Difference = 3.60 - 2.80 = 0.8 = profit
For 5 dozen, 0.8 * 5 = 4.00 = profit

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ScottTargetTestPrep · Answer

We see that the retailer sold each egg for $0.90/3 = $0.30, and hence sold the eggs for $0.30 x 12 = $3.60 per dozen. Thus, the profit per dozen of eggs is 3.60 - 2.80 = $0.80, and so the gross profit for 5 dozen eggs is 0.80 x 5 = $4.00.

Answer: C

Abhishek009 · Answer

Cost of 60 eggs is 2.80*5 = $ 14

The selling price of 60 eggs is 20*0.90 = $ 18

So, The retailer's gross profit from the sale of 60 eggs is $4, answer must be (C)

albertocalvou87 · Answer

One option is:

1.Take the values (cost: 2.80 $) of the dozen, and represent the cost of a package of 3 (There are 4 packages of 3 in a dozen) = 2.8$ / 3 = 0.7 $
2.Now you can compare it with the sale price of 0.9 $ for a package of 3. Therefore the profit is 0.9 $ - 0.7 $ = 0.2$
3. Multiply the profit of the package * 4 (packages of 3 within a dozen) = 0.2$ * 4 = 0.8$ (This is the profit per dozen)
4. Multiply the profit per dozen per the total dozens sold (5) = 0.8 $ * 5 = 4.0$

Answer: C

Hope this helps!

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BijayKru · Answer

(1 dozen eggs = 12 eggs)
3 egg * 0.90 =3.60 sale
profit = sale - purchase

3.60-2.80 =80

for 5 dozen =0.80*5= 4.00

avigutman · Answer

Video solution from Quant Reasoning: Subscribe for more: https://www.youtube.com/QuantReasoning? ... irmation=1 https://www.youtube.com/watch?v=xWG9marMGgc

dylanl1218 · Answer

Total Margin = Total Revenue - Total Cost

Since we need to sell 12 * 5 = 60 eggs it will be helpful to calculate the revenue per egg, and cost per eggs and multiply each by total eggs sold of 60.

Calculation of Revenue per egg = (9/10) ($) / 3 (Eggs) = 9 $/30 eggs = Revenue of $3 per 10 eggs
Calculation of Cost per egg = (28/10) $ / 12 (Eggs) = 28 $/120 eggs = Cost of $7 per 30 eggs

Total Revenue = (3 $ / 10 eggs) * 60 eggs = $18
Total Cost = (7 $ / 30 eggs) * 60 eggs = $14

Margin = $18 - $14 = $4

GMATinsight · Answer

Answer: Option C

Video solution by  GMATinsight

https://www.youtube.com/watch?v=_wJj0c8Ge7E

Archit3110 · Answer

SP per dozen = .9*4 ; 3.6
so gross profit = ( 3.6-2.8) * 5 ; $4
option C

sushi600 · Answer

2,80 * 5 = The buying price of 5 dozen eggs.
3,60 * 5 = The selling price of 5 dozen eggs.

3,60 - 2,80 = 0,80.

0,80 * 5 = 4.

Answer is. C.

Aditim12 · Answer

cost price = 2.80/12 * 60 = 14
selling price = .9/3*60 = 18
Profit = sp-cp = 18-14 =  4 
 option C

jkolachi · Answer

Purchase Price: $2.80 per dozen (12 eggs) 
Sale Price = $0.30 per egg ($0.9 /3). --> $0.3 * 12 = $3.6 per dozen.
$3.6 - $2.8 = $0.8 per dozen. 
$0.8 * 5 = $4.00

MBAHOUSE · Answer

You always need to adequate the units. The comparison between cost and selling price needs to be in terms of dozen eggs.

bumpbot · Answer

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A retailer purchased eggs at $2.80 per dozen and sold the eggs at 3 eg

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A retailer purchased eggs at $2.80 per dozen and sold the eggs at 3 eg

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