A Furniture Store Sells Only Two Models of Desks, Model A and Model B GMAT Problem Solving

Question: A furniture store sells only two models of desks, model A and model B The selling price of model A is $120, which is 30 percent of the selling price of model B. If the furniture store sells 2000 desks, ¾ of which are model B, what is the furniture store’s total revenue from the sale of desks?

1. $114,000
2. $186,000
3. $294,000
4. $380,000
5. $660,000

“A furniture store sells only two models of desks, model A and model B The selling price of model A is $120” - this is a topic of the GMAT Quantitative reasoning section of GMAT. This question has been taken from the book “GMAT Quantitative Review”. To solve GMAT Problem Solving questions a student must have knowledge about a good amount of qualitative skills. 

In the GMAT Problem Solving section, examiners measure how well the candidates make analytical and logical approaches to solve numerical problems. In this section, candidates have to evaluate and interpret data from a given graphical representation. In this section, mostly one finds out mathematical questions. Five answer choices are given for each GMAT Problem solving question.

Solution and Explanation:

Approach Solution:

This question has only one approach.

Explanation: Given in the question - there is a furniture store that sells only two models of desks. Those are named model A and Model B. The selling price of model A is $120 and it is also given that it is 30%
of the selling price of model B. The furniture store sells 2000 desks in total. From which 3/4th of them are model B. It is asked to calculate the total revenue from the sales of desks.
Firstly writing all the given data in mathematical form,
Selling price of A = $120
Selling price of A = 30% of the selling price of B
Total desks sold = 2000
No of model B desks sold = \(\frac{3}{4}\)of total desks.
30 % of he selling price of B = $120
\(​​​​\frac{30}{100}\) = $120
Selling price of B = \(​​​​\frac{100}{30}\) * $120
= 100 * $4
= $400
Now it is given to us that 2000 units of desks are sold. These 2000 units of desk contain both the models of desks. It is also given to us that \(\frac{3}{4}\) of all the sold desks is Model B.
So number of model B desks sold = \(\frac{3}{4}\) total desks sold
= \(\frac{3}{4}\) * (2000)
= 3 * 500
= 1500 desks
Also we know that,
Total number of desk A sold + total number of desk B sold = total number of desks.
Number of desk A sold = total desks sold - no. of desk B sold
= 2000 - 1500
= 500
Now we have to calculate the total revenue of the seller.
Total revenue = revenue by selling desk A + revenue by selling desk B
= price of A * quantity of A + price of B * quantity of B
= ( 120 * 500 )+ (400 * 1500)
= 60,000 + 600,000

= $660,000
Therefore the total revenue earned by selling both desks will be: $660,000
So option E is the correct answer.

Correct Answer: E

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