Last visit was: 24 Apr 2026, 06:23 It is currently 24 Apr 2026, 06:23
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 24 Apr 2026
Posts: 109,813
Own Kudos:
810,987
 [2]
Given Kudos: 105,870
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,813
Kudos: 810,987
 [2]
Kudos
Add Kudos
2
Bookmarks
Bookmark this Post
User avatar
imeanup
Joined: 15 Jun 2017
Last visit: 24 Mar 2026
Posts: 452
Own Kudos:
Given Kudos: 8
Location: India
Posts: 452
Kudos: 635
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Naksha
Joined: 20 Oct 2022
Last visit: 04 Oct 2023
Posts: 10
Own Kudos:
Given Kudos: 34
Posts: 10
Kudos: 1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Regor60
Joined: 21 Nov 2021
Last visit: 19 Apr 2026
Posts: 529
Own Kudos:
Given Kudos: 462
Posts: 529
Kudos: 420
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Naksha
Can anyone please explain the answer

Posted from my mobile device


Profit is the difference between sales price and cost.

Let's compare the choices.

D has about the same cost as E, but E has a significantly higher sales price, so E is certainly more profitable than D. D is eliminated.

C has about the same cost as A but also has a significantly lower sales price, so C is eliminated.

B has a marginally higher sales price than E but has a significantly higher cost, so B is eliminated.

E and A now remain.

Imagine a horizontal line drawn through E and a vertical line through A.

If the distance from E to the point of intersection is greater than the distance from A to the point of intersection, then the increase in cost going to A exceeds the difference in price going to A, which would make E more profitable.

Looking at the chart, this is obviously the case, so E is the most profitable.
Moderators:
Math Expert
109813 posts
Tuck School Moderator
853 posts