A shirt is sold for $48, making a 20% profit on the original cost. What was the original cost of the shirt?

A $38.40

B $40.00

C $42.00

D $45.00

✓ Correct Answer: Option B

If the profit is 20%, then $48 represents 120% (1.20) of the original cost. To find the original cost, divide the selling price by 1.20: $48 / 1.20 = $40.

💡 Why is B) the correct answer?

The correct answer to the question "A shirt is sold for $48, making a 20% profit on the original cost. What was the original cost of the shirt?" is Option B: $40.00.

The other options — A) $38.40, C) $42.00, D) $45.00 — are incorrect for this GRE Exam Prep question. As explained above: If the profit is 20%, then $48 represents 120% (1.20) of the original cost. To find the original cost, divide the selling price by 1.20: $48 / 1.20 = $40.

📚 About This GRE Exam Prep Practice Question

This 2-level GRE Exam Prep question from the Quantitative Reasoning topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GRE Exam Prep practice test or use flashcards for spaced repetition review.

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A shirt is sold for $48, making a 20% profit on the original cost. What was the original cost of the shirt?

✓ Correct Answer: Option B

📚 About This GRE Exam Prep Practice Question

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