Hello. I'm totally confused with this problem. Need your help.
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer’s gross profit from the purchase and the sale of the desk?
* $40
* $60
* $80
* $90
* $100
The answer is $100 (!?) :twisted:
profit problem
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Put in expression,profiler01 wrote:Hello. I'm totally confused with this problem. Need your help.
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer’s gross profit from the purchase and the sale of the desk?
* $40
* $60
* $80
* $90
* $100
The answer is $100 (!?) :twisted:
Let X be the Markup,
Putting in to expression,
150+X - 150 = (40/100)(150+X)
X = (40/100) (150 + X)
100X = 40*150 +40X
60X = 6000
X=100
So 150+100 -150 =100
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The purchase price (pp) = $150
The dealer then set the selling price (sp) as x = pp + 40% of sp ---------------------(1)
let's represent the selling price with 'x', we can rewrite (i) as
x = pp + 40% of sp
since pp = $150
x = 150 + (40/100) * (x)
x - 0.4x = 150
0.6x = 150
x = 150/0.6
x=250
Thus, the selling point is $250.
since we know that;
Gross profit = selling profit - cost price
Gross profit = $ (250-150)
=$100
The dealer's gross profit is $100.
The dealer then set the selling price (sp) as x = pp + 40% of sp ---------------------(1)
let's represent the selling price with 'x', we can rewrite (i) as
x = pp + 40% of sp
since pp = $150
x = 150 + (40/100) * (x)
x - 0.4x = 150
0.6x = 150
x = 150/0.6
x=250
Thus, the selling point is $250.
since we know that;
Gross profit = selling profit - cost price
Gross profit = $ (250-150)
=$100
The dealer's gross profit is $100.
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Let S = the selling priceA furniture dealer purchased a desk for $150 and then set the selling price equal to purchasing price plus a markup that was 40% of selling price. If the dealer sold the desk at selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?
A. $40
B. $60
C. $80
D. $90
E. $100
The dealer ... set the selling price equal to purchasing price ($150) plus a markup that was 40% of selling price.
So, the markup = 0.4S
In other words: S = 150 + 0.4S
Subtract 0.4S from both sides to get: 0.6S = 150
Solve: S = 250
In other words, the selling price was $250
What was the dealer's gross profit from the purchase and the sale of the desk?
The profit = $250 - $150 = [spoiler]$100 = E[/spoiler]
Cheers,
Brent
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We are given that a furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price.profiler01 wrote: ↑Fri Dec 01, 2006 5:21 pmHello. I'm totally confused with this problem. Need your help.
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer’s gross profit from the purchase and the sale of the desk?
* $40
* $60
* $80
* $90
* $100
The answer is $100 (!?) :twisted:
We can create the following equation in which s = the selling price.
150 + 0.4s = s
150 = 0.6s
1,500 = 6s
250 = s
Now we can determine the gross profit, which is revenue – cost.
Gross profit = $250 – $150 = $100
Answer: E
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