GMAT Practice Question: A certain grocery purchased x pounds of produce for p dollars per pound. If y...
Question
A certain grocery purchased x pounds of produce for p dollars per pound. If y pounds of the produce had to be discarded due to spoilage and the grocery sold the rest for s dollars per pound, which of the following represents the gross profit on the sale of the produce?
- (x-y) s-x p
- (x-y) p-y s
- (s-p) y-x p
- x p-y s
- (x-y)(s-p)
Topics: profit/loss, expression formulas
Solution
Step 1
Find the total cost of purchasing all the produce.
\text{Cost} = x \times p
Step 2
Compute the total revenue from selling the unspoiled produce.
\text{Revenue} = (x - y) \times s
Step 3
Subtract the total cost from the total revenue to obtain gross profit.
\text{Gross Profit} = (x - y)s - xp
Answer
A. (x-y)s - xp
