A coffee shop purchased $800$ bags of coffee beans... | Free GMAT Practice Question | GMAT Panda

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A coffee shop purchased 800 bags of coffee beans at a price of 8 dollars each. On opening day, the shop sold 500 bags at 15 dollars each and sold 200 bags the following week at 6 dollars each. The shop donated the remaining bags to a local charity. What was the shop’s gross profit on the sale of these coffee beans?

Explanation	Calculations	Help
$We calculate the total cost by translating the purchase statement using the cost formula.$	$Cost = 8 \times 800 = 6400$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from bags sold on opening day by translating that sales statement.$	$Revenue_{1} = 15 \times 500 = 7500$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from bags sold the following week by translating that sales statement.$	$Revenue_{2} = 6 \times 200 = 1200$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We add the two revenue streams to find total revenue.$	$Total Revenue = 7500 + 1200 = 8700$
$We calculate gross profit by applying the profit formula.$	$Profit = 8700 - 6400 = 2300$	Theory & Tactics Method Card TRANS3-A Click to view full details

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C

A coffee shop purchased 800 bags of coffee beans at a price of 8 dollars each. On opening day, the shop sold 500 bags at 15 dollars each and sold 200 bags the following week at 6 dollars each. The shop donated the remaining bags to a local charity. What was the shop’s gross profit on the sale of these coffee beans?

Explanation	Calculations	Help
$We calculate the total cost by translating the purchase statement using the cost formula.$	$Cost = 8 \times 800 = 6400$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from bags sold on opening day by translating that sales statement.$	$Revenue_{1} = 15 \times 500 = 7500$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from bags sold the following week by translating that sales statement.$	$Revenue_{2} = 6 \times 200 = 1200$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We add the two revenue streams to find total revenue.$	$Total Revenue = 7500 + 1200 = 8700$
$We calculate gross profit by applying the profit formula.$	$Profit = 8700 - 6400 = 2300$	Theory & Tactics Method Card TRANS3-A Click to view full details

Scroll horizontally to view all columns

C