A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch

Question

A trader bought 1500 chairs for $24 each. He sold 40 percent of the chairs for $60 each and the rest for $30 each. What was the trade’s average profit per chair?

(A) $5
(B) $8
(C) $10
(D) $12
(E) $18

GMATinsight · Answer

1500 chairs for $24 each i.e. Total Cost = 1500*24 = 36000

40% chair = 600 @ $60 = 36000
60% chair = 900 @ $30 = 27000

Total Revenue = 36000+27000 = 63000

Total Profit = Revenue - cost = 63000 - 36000 = 27000

Average Profit per chair = 27000/1500 = $18

Answer: option E

BrentGMATPrepNow · Answer

A trader bought 1500 chairs for $24 each.  
TOTAL expense = (1500)(24) = (3000)(12) =  $36,000

ASIDE: What's with the step that says "(1500)(24) = (3000)(12)"??? 
This is a time-saving tip that can make some products easier to calculate 
See the video below for more.

He sold 40 percent of the chairs for $60 each and the rest for $30 each.   
40% of 1500 chairs = 600 chairs
So, 600 chairs sold for $60 each, and the remaining 900 chairs sold for $30 each

So, revenue = (600)($60) + (900)($30)
= $36,000 + $27,000
=  $63,000

Profit =  $63,000  -  $36,000 
=   $27,000

What was the trade’s average profit  per chair ?  
Profit per chair = (total profit)/(total number of chairs)
=   $27,000  /1500
= $18

Answer: E

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ArjunJag1328 · Answer

Total cost = 1500 x 24 = 36,000

60% of the chairs were sold at $60
=>600x60
=>$36,000

Remaining chairs were sold at $30
=>900x30
=>$27,000

Total revenue = 36,000+27,000 = $63000
Selling price of a chair = 63000/1500 = $42

Average profit per chair = 42-24 =$18

Answer is E

yoannnesme · Answer

To  save time , simply find the  weighted average  of the profit for each chair.

40% of the time he made a profit of 60-24=36.
60% of the time he made a profit of 30-24=6.

In average, he made a profit of 40%(36)+60%(6) = 4*3.6 + 3.6 = 5*3 + 5*0.6 = 18.

Answer E.

ScottTargetTestPrep · Answer

The trader sold 40 percent of 1500 chairs, which is 1500 x 0.4 = 600 chairs for 60 dollars each. Thus, the remaining 900 chairs were sold for 30 dollars each.

Using the weighted average formula, we calculate the average revenue per chair:

(600 x 60 + 900 x 30)/1500 = (36000 + 27000)/1500 = 63000/1500 = $42

Since Profit = Revenue - Cost, we see that the average profit per chair is 42 - 24 = $18.

Answer: E

Abhishek009 · Answer

\frac{600*60 + 900*30 - 1500*24}{1500}

=  \frac{36000 + 27000 - 36000}{1500}

=  \frac{27000}{1500}

=  18] , Answer must be (E)

bumpbot · Answer

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A trader bought 1500 chairs for $24 each. He sold 40 percent of the ch

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