GMAT Math : Profit
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Example Questions
Example Question #151 : Word Problems
Read the problem below:
The German Club wants to make and sell cookies in order to raise $500 for a field trip. The equipment they want to use costs $400 to rent and to operate, and the ingredients for the cookies cost 45 cents per cookie. The German Club wants to sell the cookies for $2.25 each. At this price, how many cookies will they need to sell in order to earn back the money they paid for the ingredients and the equipment rental and make a profit of $500?
If 
The money raised from each cookie sold will be $2.25, so this is to be multilplied by number of cookies 
Example Question #152 : Word Problems
Read the problem below:
The Russian Club wants to make and sell cookies in order to raise $800 for a field trip. The equipment they want to use costs $350 to rent and to operate, and the ingredients for the cookies cost 35 cents per cookie. The Russian Club wants to sell the cookies for $1.75 each. At this price, how many cookies will they need to sell in order to earn back the money they paid for the ingredients and the equipment rental and make a profit of $800?
If 
Let 
They will sell the cookies for $1.75 each, thereby earning a revenue of
They want to earn at least $800, so the profit 
Replacing 
Example Question #153 : Word Problems
The Spanish Club wants to make and sell cookies in order to raise 
Let 
They will sell the cookies for $2.50 each, thereby earning a revenue of
They want to earn at least $1,000, so the profit 
Solve the inequality:
The Spanish Club will need to sell 800 cookies.
Example Question #151 : Word Problems
Adam buys 12 broken cell phones for $50 each. If he fixes the cell phones and sells them each for $80, what is his total profit?
$260
$960
$600
$360
$800
$360
Adam first buys 12 cell phones for $50 each, which means he spends:
12($50) = $600
He then sells the phones for $80 each, which means he earns:
12($80) = $960
The profit is the earnings minus the expenses, so Adam's profit is:
$960 - $600 = $360
Example Question #155 : Word Problems
It costs a company an average of 
The company makes an average net profit that is
So, to the nearest dollar, the company's net profit is 
Note: avoid the trap answer 
Example Question #11 : Calculating Profit
The stock we just bought soared 
A 55% increased of the unkown value 
So
Example Question #11 : Calculating Profit
Mary, a very respected day trader, has the following postions: She invested 
To solve this problem, we simply have to multiply each position by their respective rate.
Note that we use a negative rate if the value decreased.
The final answer is then given by following equation
Example Question #13 : Calculating Profit
We have just lost 
To find the amount invested prior to the loss set up a proportion that represents what is given mathematically.
To write 60 percent of something is the same as,
If this is equivalent to $6,000 then the statement to solve would read,
From here cross multiply and divide to solve for the amount invested prior to the loss.
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