Solutions

Get detailed explanations to advanced GMAT questions.



Question

A wholesaler bought 1,200 radios for $18 each. The wholesaler sold 60 percent of the radios for $30 each and the rest for $15 each. What was the wholesaler’s average (arithmetic mean) profit per radio?


 

Option A:

$2

Option B:

$3

Option C:

$4

Option D:

$5

Option E:

$6

Difficulty Level

Easy

Solution

Option E is the correct answer.


Option Analysis

60% of radios were sold at $30 and 40% at $15.

Average selling price = (30*0.6 + 15*0.4)/1 = 24

Average cost price = $18

Average profit = $6


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