A craftsman sold his identical handcrafted items at a profit of 20 percent. Had he charged 20 percent more per item, his profit per item would have been $9.6 more. What price did he charge, in dollars, for each item?

Correct answer marked below

28.8

Correct

57.6

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Explanation

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Official Explanation

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Let

x

be the cost price of each item.

Original selling price with 20% profit:

\frac{6}{5}x

Original profit per item:

\frac{6}{5}x - x = 0.2x

If he charged 20% more per item, the new selling price would be:

\frac{6}{5} \times \frac{6}{5}x = \frac{36}{25}x

New profit per item:

\frac{36}{25}x - x = \frac{11}{25}x

According to the problem, the new profit is $9.6 more than the original profit:…

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What this question tests

Your ability to apply GMAT math concepts to solve a multi-step problem quickly and accurately. At the 705-805 level, accuracy and speed both matter.

Overcomplicating the setup — most GMAT problems reward a direct, organized approach over brute calculation.