Free Practice Question
PS · Problem Solving
705-805
percent
A store sold 60 percent of the hats from a shipment of hats at a selling price that was 50 percent greater than the store's cost for each hat. Then the store reduced the selling price by 66 2/3 percent and sold 70 percent of the remaining hats at the reduced selling price. If the store did not sell any other hats from the shipment, then the store's gross profit from the sale of the hats from the shipment was what percent of the store's cost for the hats from the shipment?
Answer Choices
Correct answer marked belowA
1%
4%
Correct
C
9%
D
13%
E
25%
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Official Explanation
Official
Choosing the right numbers is very crucial to solve this question.
Let's assume that the number of hats in the shipment = 100.
A store sold 60 percent of the hats from a shipment of hats at a selling price that was 50 percent greater than the store's cost for each hat.
Number of hats sold = 60.
The initial selling price of the hats = times the store's cost for each hat.
Let's assume the stores cost for each hat = $2.
Cost price of 100 hats = $2 * 100 = $200.
The initial selling price of the hats = \frac{3}{2} * 2 = $3.…
Let's assume that the number of hats in the shipment = 100.
A store sold 60 percent of the hats from a shipment of hats at a selling price that was 50 percent greater than the store's cost for each hat.
Number of hats sold = 60.
The initial selling price of the hats = times the store's cost for each hat.
Let's assume the stores cost for each hat = $2.
Cost price of 100 hats = $2 * 100 = $200.
The initial selling price of the hats = \frac{3}{2} * 2 = $3.…
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What it 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.
Common trap
Overcomplicating the setup — most GMAT problems reward a direct, organized approach over brute calculation.
Related GMAT Topic Guides
Quant
TopicGMAT Quantitative Reasoning
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Difficulty
705-805
Type
PS
Category