GMAT Quant Questions | Profit Loss Q11

The given question is a GMAT 500-600 level problem solving question from the topic Profit & Loss. This GMAT quant question tests the concept of computing the selling price of an article. An easy GMAT arithmetic word problem.

Question 11: 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

Video Explanation

Explanatory Answer | GMAT Profit Loss Q11

The cost price of 1 apple = $\\frac{1}{10}) or $0.10.
Because Sam wishes to make a profit of 25%, selling price per apple should be 0.10 + 25% of 0.10
= 0.1 + 0.025 = $0.125.
If the selling price of 1 apple is $0.125, the selling price of a dozen apples = 12 × 0.125 = $1.5

Selling price of a dozen apples is $1.5

Choice D is the correct answer.