A souvenir vendor purchased 1,000 shirts for a special event at a price of 5USD each. The vendor...

Question

A souvenir vendor purchased 1,000 shirts for a special event at a price of 5USD each. The vendor sold 600 of the shirts on the day of the event for 12USD each and 300 of the shirts in the week following the event for 4USD each. The vendor was unable to sell the remaining shirts. What was the vendor's gross profit on the sale of these shirts?

GMAT Panda · Accepted Answer

3,400USD We calculate the total cost by translating the purchase statement using the cost formula. Cost = 5 1000 = 5000 We calculate the revenue from shirts sold on the day of the event by translating that sales statement. Revenue_1 = 12 600 = 7200 We calculate the revenue from shirts sold in the week following the event by translating that sales statement. Revenue_2 = 4 300 = 1200 We add the two revenue streams to find total revenue. Total Revenue = 7200 + 1200 = 8400 We calculate gross profit by applying the profit formula. Profit = 8400 - 5000 = 3400

Explanation	Calculations	Help
$We calculate the total cost by translating the purchase statement using the cost formula.$	$Cost = 5 \times 1000 = 5000$
$We calculate the revenue from shirts sold on the day of the event by translating that sales statement.$	$Revenue_{1} = 12 \times 600 = 7200$
$We calculate the revenue from shirts sold in the week following the event by translating that sales statement.$	$Revenue_{2} = 4 \times 300 = 1200$
$We add the two revenue streams to find total revenue.$	$Total Revenue = 7200 + 1200 = 8400$
$We calculate gross profit by applying the profit formula.$	$Profit = 8400 - 5000 = 3400$

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