The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is
Correct Answer: C
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You’ll find tons of practice questions, explanations for GMAT Official Guide questions, and strategies on our GMAT Question of the Day page.
Here are a few other extra challenging GMAT questions with in depth explanations:
Here’s a tough function question from the GMAT Prep tests 1 and 2:
And a very challenging word problem from the Official Guide. Almost no-one gets this one on the first try but there is a somewhat simple way through it:
Last Sunday a certain store sold copies of Newspaper A for $1.00 each and copies of Newspaper B for $1.25 each, and the store sold no other newspapers that day. If r percent of the store’s revenues from newspaper sales was from Newspaper A and if p percent of the newspapers that the store sold were copies of newspaper A, which of the following expresses r in terms of p?
Tanya’s letters from the GMAT Prep tests. This one often gets GMAT tutoring students caught up in a tangled net. With combinatorics it’s important to stay practical. We’ll take a look at how to do that in the explanation:
Tanya prepared 4 different letters to be sent to 4 different addresses. For each letter, she prepared an envelope with its correct address. If the 4 letters are to be put into the 4 envelopes at random, what is the probability that only 1 letter will be put into the envelope with its correct address?
Here’s an exponents puzzle that comes up a lot in GMAT tutoring sessions:
This is one of the most difficult questions in the GMAT universe. That said, there is a simple way to solve it that relies on a fundamental divisibility rule every GMAT studier should know:
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