## GMAT Quantitative Review

## 3.0 Math Review

### 3.4 Word Problems

### 6. Profit

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.