An art supply store buys a case of 144 pens at a wholesale price of $1

Question

An art supply store buys a case of 144 pens at a wholesale price of $1 per pen. The pens are then offered for sale at a retail price 50% greater than the wholesale price. 100 of the pens are sold at this new price, and the remaining pens are sold at a 50% discount from the retail price. What is the store’s approximate profit on the pens, expressed as a percentage of the wholesale cost?

A. 30%
B. 40%
C. 50%
D. 60%
E. 70%

A. 30%
B. 40%
C. 50%
D. 60%
E. 70%

v12345 · Answer

SP of 100 pens = 1.5 * 100 = 150
SP of 44 pens = 1.5/2 * 44 = 0.75*44 = 33
Total SP = 183
CP = 144
Profit = 183-144 = 39
Profit % = 39/144 * 100 = 27.1% (approx 30%)

Hence, OA is (A).

sood1596 · Answer

Wholesale cost = 144 $

Sale at retail price at 50% greater discount = $1.5

SP of 100 pens = $150

Discounted cost = $0.75
SP of remaining 44 pens = 33

Total selling price of pens at retail price = 183

Profit = 183 - 144 = 39

Profit percentage = 39/144 *100 = somewhere near 26-28 percent

Answer -A

It would be great if someone could help me approximate the calculation in a faster way. Thanks

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Varunsawhney8 · Answer

Wholesale Cost of 144 Pen = 144

Now Retail price per Pen costs 1.5 Rs = 144*1.5= 216

Given
100 @ 1.5 = 150
and 44 @ 0.75 = 33

Total Sale Price= 183

Answer= 183-144/144*100=30%

GMATWhizTeam · Answer

Solution 
 • Wholesale cost = $1 per pen
 o So, total wholesale cost = 144*1 = $144 
• 100 pens were sold at the retail price 50% greater than the whole sale price.
 o So, selling price of one pen = $1.5
o Selling price of 100 pens = 100*1.5 = $150 
• Remaining pens = 144 – 100 = 44 are sold at 50% discount from the retail price.
 o So, selling price of a pen = $ \frac{1.5}{2} 
o Selling price of 44 pens =  44*\frac{1.5}{2}  = $33 
• Thus, total selling price = $(150+33) = $183
• Profit % on the wholesale cost =  \frac{183 – 144}{144}*100 =\frac{39}{144}*100  
 o  \frac{39}{144}*100  will be slightly greater than  \frac{36}{144}*100 = 25 % , 
 o So, the approximate percentage =30%    
Thus, the correct answer is  Option A.

ScottTargetTestPrep · Answer

Solution:

The total cost of the 144 pens is 144 x 1 = $144.

The retail price of the first 100 pens sold is $1.50 each whereas that of the remaining 44 pens is ½ x 1.5 = $0.75 each. Therefore, the total revenue of the 144 pens is 100 x 1.5 + 44 x 0.75 = 150 + 33 = $183 and the total profit is 183 - 144 = $39.

Therefore, the profit as a percentage of the cost is:

39/144 x 100 ≈ 27 percent

Of all the answer choices, 30% is the closest to 27%, so 30% is the correct answer.

Answer: A

An art supply store buys a case of 144 pens at a wholesale price of $1

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An art supply store buys a case of 144 pens at a wholesale price of $1

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