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

Question

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

Bunuel · Accepted Answer

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.

patriciadfer · Answer

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

JouviMat · Answer

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

ellenka · Answer

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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Suraj17018 · Answer

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.

Abhishek009 · Answer

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)

aaravarora2 · Answer

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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Gemmie · Answer

p: price
c: cost

p * \frac{4}{5} * 15 = \frac{5}{4} * 15 * c

=>  p * \frac{4}{5} = \frac{5}{4} * c

=>  p = \frac{25c}{16}

p * \frac{4}{5} * 15 = 600 
=> p * 12 = 600
=> p = 50
=>  c = \frac{16p}{25} = 32

profit on day 1:  \frac{1}{4} * 32 * 15 = 8 * 15 = 120

profit on day 2: (50 - 32) * 20 = 18 * 20 = 360

profit in 2 days: 120 + 360 = 480

HarshavardhanR · Answer

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SotJake · Answer

The following solution is based on a well known fact, that the  25% increase  and the  20% decrease  are inverses, i.e.  125\%*80\%=100\% .

Day 1: Sale of 15 toys w/ discount   
 
  Day 1's revenue  was  $600  from selling  15 toys . 
 The  price per unit w/ discount  is:  \frac{\$600}{15}=\$40 . 
 This is a  20% decrease  from the price per unit (w/o discount). 
 Also, it's a  25% increase  from the cost per unit.  
   The Reveal:   
 We invert the  % changes  and we find our unknowns: 
 
  Price per unit   = 125\% * \$40 = \$50 .  
  Cost per unit   = 80\% * \$40 = \$32 :   
   Day 2: Sale of 20 toys w/o discount   
 
 On Day 2, he sold  20 toys  at the marked price of  $50 per unit . 
  Day 2's revenue  is  $50 * 20 = $1000   
   Total Revenue and Cost:   
 
  Total revenue  over two days:  \$600 + \$1000 = \$1600  
  Total cost  for 15+20= 35   toys:   \$32 * 35 = \$1120 .  
   Finale:   
Now, subtract the total cost from the total revenue to find the total profit:
 
  Total Profit  = \$1600 - \$1120 = \$480    
So, the gross profit over two days is (C)  $480 .

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

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