GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 24 Apr 2019, 05:05

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

Word Problem - A craftsman sold his identical handcrafted items at a p

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
e-GMAT Representative
User avatar
D
Joined: 04 Jan 2015
Posts: 2812
Word Problem - A craftsman sold his identical handcrafted items at a p  [#permalink]

Show Tags

New post 22 Jan 2017, 01:14
1
5
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

50% (02:13) correct 50% (02:25) wrong based on 88 sessions

HideShow timer Statistics

Q.)
A craftsman sold his identical handcrafted items at a profit of 20 percent. Had he charged 20 percent more per item, his profit per item would have been $9.6 more. What price did he charge, in dollars, for each item?

    A. 24
    B. 28.8
    C. 40
    D. 48
    E. 57.6

Thanks,
Saquib
Quant Expert
e-GMAT

Register for our Free Session on Number Properties (held every 3rd week) to solve exciting 700+ Level Questions in a classroom environment under the real-time guidance of our Experts :)

Image

_________________
e-GMAT Representative
User avatar
D
Joined: 04 Jan 2015
Posts: 2812
Word Problem - A craftsman sold his identical handcrafted items at a p  [#permalink]

Show Tags

New post Updated on: 27 Jan 2017, 23:50

Originally posted by EgmatQuantExpert on 22 Jan 2017, 01:16.
Last edited by EgmatQuantExpert on 27 Jan 2017, 23:50, edited 1 time in total.
Director
Director
User avatar
D
Joined: 05 Mar 2015
Posts: 999
Re: Word Problem - A craftsman sold his identical handcrafted items at a p  [#permalink]

Show Tags

New post 22 Jan 2017, 12:04
EgmatQuantExpert wrote:
Q.)
A craftsman sold his identical handcrafted items at a profit of 20 percent. Had he charged 20 percent more per item, his profit per item would have been $9.6 more. What price did he charge, in dollars, for each item?

    A. 24
    B. 28.8
    C. 40
    D. 48
    E. 57.6

Thanks,
Saquib
Quant Expert
e-GMAT

Register for our Free Session on Number Properties (held every 3rd week) to solve exciting 700+ Level Questions in a classroom environment under the real-time guidance of our Experts :)

Image


Let x be CP of item
then profit of 20% over already increased 20% of Cost price = (6/5)^2*x
profit @ only 20% increase = (6/5)*x-x = 0.2x
per stem
(6/5)^2*x = 0.2x+9.2
6x/25=9.6
x=40
thus initially he charge 20% profit over $40
(6/5)*40 = $48

Ans D
e-GMAT Representative
User avatar
D
Joined: 04 Jan 2015
Posts: 2812
Re: Word Problem - A craftsman sold his identical handcrafted items at a p  [#permalink]

Show Tags

New post 27 Jan 2017, 23:49
Hey,

PFB the official solution.


Given:

    • Let the Cost Price of each item be\(C\) dollars and the selling price be \(S\)dollars
    • If Selling Price is \(20\)% more, profit per item is $\(9.6\) more

To find:

    • \(S =\)?


Approach:

    1. To find the value of S, we need to draft an equation in terms of S.
    2. We’re given the relation between Old Profit (when the selling price is S) and the New Profit (when the selling price is 20% greater than S). We’ll use this relation to draft an equation in terms of S.

Working Out:

    • New Selling Price = \(S + 20% * S = S + 0.2S = 1.2S\)
    • New Profit = (Old Profit) + $\(9.6\)
      o New profit = New SP – CP \(= 1.2S – C\)
      o Old profit = Old SP – CP\(= S - C\)
    • So, \((1.2S – C) = (S – C) + 9.6\)• \(0.2S = 9.6\)
    • \(S = \frac{9.6}{0.2}\)
    • \(S = 48\)

Looking at the answer choices, we see that the correct answer is Option D

Thanks,
Saquib
Quant Expert
e-GMAT

Register for our Free Session on Number Properties (held every 3rd week) to solve exciting 700+ Level Questions in a classroom environment under the real-time guidance of our Experts :)

Image
_________________
Senior Manager
Senior Manager
avatar
G
Status: Countdown Begins...
Joined: 03 Jul 2016
Posts: 287
Location: India
Concentration: Technology, Strategy
Schools: IIMB
GMAT 1: 580 Q48 V22
GPA: 3.7
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge
Re: Word Problem - A craftsman sold his identical handcrafted items at a p  [#permalink]

Show Tags

New post 28 Jan 2017, 00:40
1
1
The price after 20% percent profit = 1.2x

Another 20% profit means 1.2x/5 = 0.24x = 9.6

x = 40.

So the original price = 40 + 40/5 = 48.
Intern
Intern
avatar
B
Joined: 10 Nov 2018
Posts: 12
Re: Word Problem - A craftsman sold his identical handcrafted items at a p  [#permalink]

Show Tags

New post 26 Mar 2019, 02:23
Hello Saqib,

Its not clear from the stem that 20% more on the Selling price of 1.2C (which will make the selling price 1.44C), or 20% extra of CP on the selling price (which will make the selling price 1.2C+.2C = 1.4C)

Only thing mentioned is : Had he charged 20 percent more per item

Kindly explain, to understand better.
Intern
Intern
avatar
B
Joined: 19 Nov 2016
Posts: 9
GMAT ToolKit User
Re: Word Problem - A craftsman sold his identical handcrafted items at a p  [#permalink]

Show Tags

New post 30 Mar 2019, 03:13
EgmatQuantExpert wrote:
Hey,

PFB the official solution.


Given:

    • Let the Cost Price of each item be\(C\) dollars and the selling price be \(S\)dollars
    • If Selling Price is \(20\)% more, profit per item is $\(9.6\) more

To find:

    • \(S =\)?


Approach:

    1. To find the value of S, we need to draft an equation in terms of S.
    2. We’re given the relation between Old Profit (when the selling price is S) and the New Profit (when the selling price is 20% greater than S). We’ll use this relation to draft an equation in terms of S.

Working Out:

    • New Selling Price = \(S + 20% * S = S + 0.2S = 1.2S\)
    • New Profit = (Old Profit) + $\(9.6\)
      o New profit = New SP – CP \(= 1.2S – C\)
      o Old profit = Old SP – CP\(= S - C\)
    • So, \((1.2S – C) = (S – C) + 9.6\)• \(0.2S = 9.6\)
    • \(S = \frac{9.6}{0.2}\)
    • \(S = 48\)

Looking at the answer choices, we see that the correct answer is Option D



Could you please explain why
So, \((1.2S – C) = (S – C) + 9.6\)• \(0.2S = 9.6\)

I just couldnt get it.
GMAT Club Bot
Re: Word Problem - A craftsman sold his identical handcrafted items at a p   [#permalink] 30 Mar 2019, 03:13
Display posts from previous: Sort by

Word Problem - A craftsman sold his identical handcrafted items at a p

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


cron
Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.