GRE Math : Profit Margin

Study concepts, example questions & explanations for GRE Math

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前女友ample Questions

前女友ample Question #1 :Profit Margin

玛丽买了一辆汽车从一个意思是推销员谁指控her 12% over the original price of a $15,000 car. Luke buys the same car from a much nicer salesman who gives him an 8% discount off of the original price. How much more does Mary spend on the car than Luke does?

Possible Answers:

$2500

$1200

$3000

$2000

Correct answer:

$3000

前女友planation:

12% of 15,000 is 0.12 * 15,000 = 1800.

8% of 15,000 is 0.08 * 15,000 = 1200; therefore in total, Mary spent 1800 + 1200 = $3000 more.

前女友ample Question #1 :Profit Margin

A grade school pays Mr. Day a salary of $24,585 per school year. Each school year contains 165 days. Suppose Mr. Day is sick for a week (5 work days) and the school doesn't have to pay him for those days. Instead, they must pay a substitute teacher to teach his classes. They pay the substitute $90 per day. Totally, how much does the school save for the week Mr. Day is sick?

Possible Answers:

The answer cannot be determined from the given information.

The school must pay $59 extra for the substitute teacher.

$59

$205

$295

Correct answer:

$295

前女友planation:

Divide Mr. Day's salary by 165 to determine how much the school pays him per day: Mr. Day makes $149 per day. They only have to pay substitute $90 per day, saving them $59 per day. To figure out how my they save totally, multiply by 5 to get how much they save for the week Mr. Day is sick: $295.

前女友ample Question #1 :How To Find Amount Of Profit

What percentage of profit is made on a product sold for $20 if its overall production cost was $17.50?

Possible Answers:

87.5%

25%

14.29%

15.252%

46.67%

Correct answer:

14.29%

前女友planation:

To find the profit percentage, you must first determine the amount of profit made on this transaction. If the sale price was $20 and the production cost $17.50, then the profit made was: 20 -17.5 = $2.50. The profit percentage is determined by dividing the amount of profit made by the original price, or 2.5 / 17.5 = (approx.) 0.14286 or 14.29%.

前女友ample Question #51 :体育rcentage

Manufacturer X has a base monthly operating cost of $30,000. It makes only one product, which costs $5 per piece in addition to the base operational costs for the plant. These products are each sold for $15 apiece. How many products must the company sell in order to break even in any given month?

Possible Answers:

3.,000

2,000

10,000

2,500

1,500

Correct answer:

3.,000

前女友planation:

Begin by translating your problem into an equation. What we want to ascertain is the situation when the profit equals exactly 0. The profit and loss for a given month can be summarized by the following equation:

(Total product revenue) - (Base operating costs) - (Individual costs for products) = 0

Given our data, we can rewrite this:

15 * x - 30,000 - 5 * x = 0

Combine like terms:

10 * x - 30,000 = 0

Isolate x:

10 * x = 30,000; x = 3,000.

Therefore, the manufacturer must sell at least 3,000 items per month in order to "break even."

前女友ample Question #1 :Profit Margin

A new t-shirt has a total cost of 8 dollars for a given retailer. Its current price is $15. If the retailer discounts the cost of the shirt by 20%, how many must it sell in order to make the same amount of profit as when it sold 300 of the shirts at the original price?

Possible Answers:

3.60

525

3.95

None of the other answers

400

Correct answer:

525

前女友planation:

First, we must ascertain the original profit. Per shirt, the retailer made 15 – 8, or $7. Selling 300 shirts, it made a profit of $2,100.

The new price, discounted by 20% is equal to 80% of the original price, or 15 * 0.8 = $12. This yields a profit of $4 per shirt.

To ascertain the number of sales needed to make $2,100 in profit, we must solve the following equation:

4x = 2100; x = 525 shirts

前女友ample Question #51 :体育rcentage

A laptop computer costs $235 to manufacture. If it is sold for $578, what is the percent of profit made on the item?

Possible Answers:

53.38%

59.34%

3.43%

245.96%

145.96%

Correct answer:

145.96%

前女友planation:

The amount of profit made on the item is 578 – 235 = $343. This is 343/235 or (approximately) 1.4596, which is 145.96% of the original price.

前女友ample Question #1 :How To Find Amount Of Profit

Sally buys a dress that is a 20% discount from the original price. If she sells it at a 10% markup from her purchase price and profits $10 from the sale, what was the original price of the dress?

Possible Answers:

110

100

125

20

120

Correct answer:

125

前女友planation:

Set Original = O

and Discount = D

then

D = (1 – 20%) x O = 0.80 x O

and Profit = $10 so:

10 = ((1 + 10%) x D) – D = 1.1 * D – D = 0.1D

D = 100

and O = D / 0.8 = 125

前女友ample Question #1 :How To Find Amount Of Profit

A shirt costs $12 to manufacture. If the marketing and sales costs are a 75% addition to this manufacturing cost. What is the minimum price necessary for making a 50% profit?

Possible Answers:

$18

$31.5

$10.5

$16.5

$21

Correct answer:

$31.5

前女友planation:

根据提示,我们知道the additional marketing and sales costs are 12 * 0.75 = 9; therefore, the total cost for purchase and sale is 12 + 9 = $21. To make a 50% profit, we must make 21 * 0.5, or $10.5, on the sale; thus the shirt must be sold for 21 + 10.5, or $31.5.

前女友ample Question #1 :How To Find Amount Of Profit

A factory has fixed costs of $25,000 per month. It manufactures widgets at a total manufacturing cost of $45 per widget. They are sold at $60. How many widgets must be sold in any given month in order to break even?

Possible Answers:

1666

555

1753

1667

556

Correct answer:

1667

前女友planation:

Let's first represent the total costs per month:

C = 25000 + 45n, where n is the number of widgets manufactured.

The profit can be represented as 60n – C or 60n – 25000 – 45n = 15n – 25000. Now, we merely have to solve this for 0 in order to find the "break even" line.

15n – 25000 = 0 → 15n = 25000 → n = 1666.67. We must sell a whole number of widgets, so it must be 1667.

前女友ample Question #10 :Profit Margin

A boy with a lemonade stand sells cups of lemonade for a quarter each. He has boughtworth of supplies and is able to makeof lemonade with the supplies. If he has to pay a business tax offor each cup he sells, how many cups will he have to sell in order to break even?

Possible Answers:

Correct answer:

前女友planation:

To solve this problem we must first find out how cups he must sell without tax to break even. If each cup of lemonade costs a quarter and he has spent $20 on supplies, that means in order to make back the original $20 he spent, he must sell. Due to this 4% business tax, he must sell 4% more in order to break even. To find that amount, we simply multiply that 4% by the number of cups he must sell without tax to break even,. He must sell an additional 3.2 cups in order to break even, however it is impossible to sell 0.2 of a cup of lemonade, therefore he must sell a minimum of 84 cups of lemonade in order to break even.

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