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You are here: Home » GMAT Test Prep Problem » Profit Loss & Discounts » Question 2
profit, loss and discounts   Profit Loss : Finding the Selling Price (SP)
The question is a Math Problem Solving question in Arithmetic from the topic Profit and Loss.

Question 2
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 .

Explanatory Answer
The cost price of 1 apple = 1/10th 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

 


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