GMAT Quantitative Review
3.0 Math Review
3.4 Word Problems
Gross profit is equal to revenues minus expenses, or selling price minus cost.
Example: A certain appliance costs a merchant $30. At what price should the merchant sell the appliance in order to make a gross profit of 50 percent of the cost of the appliance?
Solution: If s is the selling price of the appliance, then , or . The merchant should sell the appliance for $45.