A retailer purchased $800$ caps at a price of $4$ ... | Free GMAT Practice Question | GMAT Panda

👋 Hi! I'm GMAT Panda. Ask me anything about this question, or click a button below to get started!

A retailer purchased 800 caps at a price of 4 dollars each. The retailer sold 500 caps on the opening day for 10 dollars each and 200 caps in the following week for 5 dollars each, and was unable to sell the remaining caps. What was the retailer’s gross profit on these caps?

Explanation	Calculations	Help
$We calculate the total cost by translating the purchase statement using the cost formula.$	$Cost = 4 \times 800 = 3200$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from caps sold on the opening day by translating that sales statement.$	$Revenue_{1} = 10 \times 500 = 5000$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from caps sold in the following week by translating that sales statement.$	$Revenue_{2} = 5 \times 200 = 1000$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We add the two revenue streams to find total revenue.$	$Total Revenue = 5000 + 1000 = 6000$
$We calculate gross profit by applying the profit formula.$	$Profit = 6000 - 3200 = 2800$	Theory & Tactics Method Card TRANS3-A Click to view full details

Scroll horizontally to view all columns

B

A retailer purchased 800 caps at a price of 4 dollars each. The retailer sold 500 caps on the opening day for 10 dollars each and 200 caps in the following week for 5 dollars each, and was unable to sell the remaining caps. What was the retailer’s gross profit on these caps?

Explanation	Calculations	Help
$We calculate the total cost by translating the purchase statement using the cost formula.$	$Cost = 4 \times 800 = 3200$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from caps sold on the opening day by translating that sales statement.$	$Revenue_{1} = 10 \times 500 = 5000$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We calculate the revenue from caps sold in the following week by translating that sales statement.$	$Revenue_{2} = 5 \times 200 = 1000$	Theory & Tactics Method Card TRANS3-B Click to view full details
$We add the two revenue streams to find total revenue.$	$Total Revenue = 5000 + 1000 = 6000$
$We calculate gross profit by applying the profit formula.$	$Profit = 6000 - 3200 = 2800$	Theory & Tactics Method Card TRANS3-A Click to view full details

Scroll horizontally to view all columns

B