Last visit was: 23 Apr 2026, 08:56 It is currently 23 Apr 2026, 08:56
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
kevincan
User avatar
GMAT Instructor
Joined: 04 Jul 2006
Last visit: 23 Apr 2026
Posts: 1,603
Own Kudos:
2,035
 [1]
Given Kudos: 158
GRE 1: Q170 V170
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
GRE 1: Q170 V170
Posts: 1,603
Kudos: 2,035
 [1]
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
User avatar
Dereno
Joined: 22 May 2020
Last visit: 23 Apr 2026
Posts: 1,398
Own Kudos:
Given Kudos: 425
Products:
Posts: 1,398
Kudos: 1,373
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
kevincan
User avatar
GMAT Instructor
Joined: 04 Jul 2006
Last visit: 23 Apr 2026
Posts: 1,603
Own Kudos:
Given Kudos: 158
GRE 1: Q170 V170
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
GRE 1: Q170 V170
Posts: 1,603
Kudos: 2,035
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Dereno
Joined: 22 May 2020
Last visit: 23 Apr 2026
Posts: 1,398
Own Kudos:
1,373
 [1]
Given Kudos: 425
Products:
Posts: 1,398
Kudos: 1,373
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
kevincan
Five Kudos if anybody can provide a 20 second solution!
Thanks Kevin for raising it.

Initial case 80% is sold at 800, while 20% is sold at 560.

Case 2: 90% sold at 800. The additional 10% is from the discounted lot moving to full amount. So, moving you bring the discounted amount back to the total. That’s 240.

So, it brings 10% ( 800-560) = 10%(240) = $24 in excess.

So, the actual profit is $20. Now it’s $20+$24 = $44.
User avatar
egmat
User avatar
e-GMAT Representative
Joined: 02 Nov 2011
Last visit: 22 Apr 2026
Posts: 5,632
Own Kudos:
Given Kudos: 707
GMAT Date: 08-19-2020
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 5,632
Kudos: 33,433
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Quote:

EverCool purchased several portable air conditioners and sold 4/5 of them in June at the recommended retail price of $800. In July, it sold the remaining units at a 30% discount.

If EverCool’s average profit was $20 per air conditioner, what would the average profit per air conditioner have been if EverCool had sold 9/10 of the units at the recommended retail price and the remaining units at a 30% discount?

A. $36
B. $40
C. $44
D. $48
E. $56

Let's pick 10 units to make the math clean (works with both 4/5 and 9/10).

Step 1: Find the cost per unit using the original scenario.

The discounted price is 70% of $800 = $560.

Original scenario: 4/5 of 10 = 8 units sold at $800, and 2 units sold at $560.

Total revenue = (8 × $800) + (2 × $560) = $6,400 + $1,120 = $7,520

Average revenue per unit = $7,520 ÷ 10 = $752

Since average profit was $20, the cost per unit = $752$20 = $732.

Step 2: Calculate the new average profit.

New scenario: 9/10 of 10 = 9 units at $800, and 1 unit at $560.

Total revenue = (9 × $800) + (1 × $560) = $7,200 + $560 = $7,760

Average revenue per unit = $7,760 ÷ 10 = $776

New average profit = $776$732 = $44.

Answer: C

Key Insight: The cost per unit never changes — only the revenue mix changes. So the entire problem boils down to: (1) use the original scenario to back-solve for cost, then (2) plug the new sales mix in to find new average profit. Picking a smart number of units (like 10) keeps the fractions simple.
Moderators:
Math Expert
109778 posts
Tuck School Moderator
853 posts