Question: A wholesaler purchases “n” mobile phones from the manufacturer at a price of $120 per mobile and sells them to the retailer at a price of $180 per mobile. Because the payments are made online, the wholesaler needs to pay a transaction charge of 5% while purchasing from the manufacturer and selling to the retailer. What is the profit percentage of the wholesaler after purchasing and selling all the “n” mobile phones?
“A synchronized diving competition will feature 25 synchronized jumps of 2 divers each. At a minimum, how many divers are needed to ensure that each of the 25 jumps features a different combination of divers?”- is a topic of the GMAT Quantitative reasoning section of GMAT. This question has been taken from the book “GMAT Official Guide Quantitative Review”. To solve GMAT Problem Solving questions a student must have knowledge about a good amount of qualitative skills. The GMAT Quant topic in the problem-solving part requires calculative mathematical problems that should be solved with proper mathematical knowledge.
Answer: B
Solutions and Explanation
Approach Solution (1):
Let n = 1
Wholesaler pays transaction charges both during his purchase and his selling
Purchase amount including transaction charges = 120 + 5% = 126
Selling amount including tr. charges = 180 – 5% = 171 (since he loses 5% because of transaction)
(171 – 126) / 126 = 45/126 = 5/14 = 0.357 = 0.36 approx = 36%
Correct Option: B
Approach Solution (2):
Total cost price = 120 + 5% of 120 = 120 + (1/20) * 120 = 126
Net selling price = 180 – 5% of 180 = 180 – (1/20) * 180 = 171
Profit % = (171 – 126)/126 * 100 = 45/126 * 100 = 36%
Correct Option: B
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