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# An online merchant sells wine for $20 for an individual  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: GRE Prep Club Legend Joined: 07 Jun 2014 Posts: 4857 GRE 1: Q167 V156 WE: Business Development (Energy and Utilities) Followers: 105 Kudos [?]: 1782 [0], given: 397 An online merchant sells wine for$20 for an individual [#permalink]  27 May 2018, 03:53
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Question Stats:

66% (00:48) correct 33% (00:00) wrong based on 3 sessions
An online merchant sells wine for $20 for an individual bottle or$220 for a case of 12. Either way, the merchant’s cost for the wine is $10 per bottle. Shipping costs the merchant$5 for a bottle and $40 for a case. If 12 cases and 60 individual bottles were sold, and there were no other revenue or expenses, the merchant’s profit was equal to which of the following? (A)$780
(B) $1,020 (C)$2,160
(D) $2,640 (E)$3,840
[Reveal] Spoiler: OA

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Sandy
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GRE Prep Club Legend
Joined: 07 Jun 2014
Posts: 4857
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 105

Kudos [?]: 1782 [0], given: 397

Re: An online merchant sells wine for $20 for an individual [#permalink] 27 May 2018, 13:05 Expert's post Explanation Profit is equal to Revenue – Expenses. First, calculate revenue: 12 cases sold for$220 each = $2640 60 Bottle sold for$20 each = $1200 ------------------------------------- Total Revenue =$3480

Now, calculate expenses. How many total bottles of wine were sold? 12 cases × 12 bottles, plus 60 individual bottles = 204 bottles. Note that the bottles sold individually versus those sold in cases have the same purchase cost ($10), but different shipping costs. Thus: 204 bottles of$10 each = $2040 Shipping of bottles = $$60 \times 5$$ Shipping of case = $$12 \times 40$$ ------------------------------------- Total Revenue =$2820

Profit = Revenue – Expenses Profit = $3,840 –$2,820 Profit = $1,020 Hence option B is correct! _________________ Sandy If you found this post useful, please let me know by pressing the Kudos Button Try our free Online GRE Test Re: An online merchant sells wine for$20 for an individual   [#permalink] 27 May 2018, 13:05
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