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You are here: Home » GMAT Test Prep Problem » Profit Loss & Discounts » Question 2

The question is a Math Problem Solving question in Arithmetic from the topic Profit and Loss.

Sam buys 10 apples for $1. At what price should he sell a dozen apples if he wishes to make a profit of 25%?

1. $0.125
2. $1.25
3. $0.25
4. $1.5
5. $1.8
   
   

The correct choice is (D) and the correct answer is $1.5 .

The cost price of 1 apple = th of a dollar or $0.10.
As Sam wishes to make a profit of 25%, his selling price per apple will be 0.10 + 25% of 0.10 = $0.125.

If the selling price of 1 apple is $0.125, then the selling price of a dozen apples = 12 * 0.125

= $1.5