A certain store purchased grills for $50 each and lawn chairs for $5 e

Question

A certain store purchased grills for $50 each and lawn chairs for $5 each and then sold each grill and each chair. The store's gross profit on each grill was 30 percent of its purchase price, and the store's gross profit on each chair was 50 percent of its purchase price. If the store sold 5 times as many chairs as grills and if the store's total gross profit on the grills and chairs was $550, what was the store's total revenue from the sale of the grills and chairs?

A. $1,530

B. $1,800

C. $2,050

D. $2,100

E. $2,360

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Official Answer

C

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chetan2u · Accepted Answer

Let there be x grills sold, then 5x chairs are sold.

Profit on each grill: 30% of 50 or $15
Profit on each chair: 50% of 5 or $2.5

Total profit = 15*x + 2.5*5x = 27.5x = 550 
x = 20

Thus revenue generated = cost + profit 
50*20 + 5*100 + 550 = 1500 + 550 = $2050

C

If we were to give slightly lucrative wrong options, 1500 would surely be an option.

Sanyam_Maheshwari · Answer

Let's denote the number of grills purchased as = G 
and the number of lawn chairs purchased as = C

Given:

Purchase price for each grill = $50
Purchase price for each lawn chair = $5
The store's gross profit on each grill is 30% of its purchase price, so the profit per grill is 0.30 *50 = $15.
The store's gross profit on each chair is 50% of its purchase price, so the profit per chair is 0.50 * 5 = $2.50.

Now, the store sold 5 times as many chairs as grills, so 
C=5G.

The total gross profit on grills is 0.3*50 = $15
on chairs is 0.5*5 = $2.50

and the total gross profit on both is given as $550.

So, we can set up the equation:
15G+2.50C=550

Now, substitute 
C=5G into the equation:
15G+2.50(5G)=550

Solve for G 
G=20
C=5G=5×20=100

The total revenue from the sale of grills is 20 *(50 + 15) = 20 * 65 = $1300.
The total revenue from the sale of chairs is 100 * (5 + 2.50) = 100 * 7.50 = $750.

Therefore, the store's total revenue from the sale of grills and chairs is $1300 + $750 = $2050.

Vishalp05 · Answer

I took 3 minutes and 10 seconds to solve this one. Is it possible to do it in under 2 minutes with a shorter approach? Experts, please share your guidance.

ariyanak · Answer

KarishmaB   chetan2u   ScottTargetTestPrep  is there a faster way to do this?

nosaj · Answer

Also tried thinking about this, but the main takeaway for me here is that

Figure out quantity 
1) You're given total profit, 2) you know the total profit per item, 3) you know the ratio of items - therefore you can figure out the quantity of items

Figure out revenue 
1) Cost + Profit = Revenue (not how we commonly look at it... but good old GMAT sure makes simple concepts hard)
2) Use quantity and multiply against cost

sunet233 · Answer

Given:

Grills 
 Chairs 
 
  Cost = $50 
 Cost = $5 
 
  Profit = 30% of 50 = 15 
 Profit = 50% of 5 = 2.5 
 
  SP= 50+15 = 65 
 SP= 5+2.5 = 7.5

As store sold 5 times as many chairs as grills, x= 5x

Total Profit = P1 * No. of grills + P2 * No. of Chairs
 
550 = 15x + 2.5*(5x)
550 = 27.5x
x = 20

So, if x= 20 then 5x = 100
RG = 20*65 = 1300
RC = 100*7.5 = 750

Total = 1300+ 750 = 2050

A certain store purchased grills for $50 each and lawn chairs for $5 e

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Grills	Chairs
Cost = $50	Cost = $5
Profit = 30% of 50 = 15	Profit = 50% of 5 = 2.5
SP= 50+15 = 65	SP= 5+2.5 = 7.5

GMAT Problem Solving (PS) Questions

A certain store purchased grills for $50 each and lawn chairs for $5 e

Prep Toolkit

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My Rewards