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didieravoaka
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Hi didieravoaka,
In these types of questions, you have to be careful about how you set up your initial equations; the concept of 'percentage change' works in a very specific way.
We're told that marking up the price of an item 80% leads to a final price of $45...
X + .8X = $45
1.8X = $45
(9/5)X = $45
X = (45)(5/9)
X = 25
Now that we know the original price of the item, we can determine how many MORE dollars must be added to increase the original price 100%
X = 25
A 100% increase in price = 50
Since we're already at $45, we need $5 more.
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
In these types of questions, you have to be careful about how you set up your initial equations; the concept of 'percentage change' works in a very specific way.
We're told that marking up the price of an item 80% leads to a final price of $45...
X + .8X = $45
1.8X = $45
(9/5)X = $45
X = (45)(5/9)
X = 25
Now that we know the original price of the item, we can determine how many MORE dollars must be added to increase the original price 100%
X = 25
A 100% increase in price = 50
Since we're already at $45, we need $5 more.
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
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GMATGuruNY
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An alternate approach is to PLUG IN THE ANSWERS.A retailer bought a shirt at wholesale and marked it up 80% to its initial retail price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?
1
2
3
4
5
Initial markup = 80% = 4/5.
Implication of the denominator in red:
All of the prices in the problem are almost certainly divisible by 5.
The answer choices imply the following options for the selling price after a 100% markup:
45+1 = 46
45+2 = 47
45+3 = 48
45+4 = 49
45+5 = 50.
Only E yields a multiple of 5.
Since the price after a 100% markup is DOUBLE the wholesale price, E implies a wholesale price of $25.
If E is correct, adding 80% to the wholesale price will yield a selling price of $45:
25 + (4/5)(25) = 45.
Success!
The correct answer is E.
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A markup of 80% implies 180% of the wholesale price.A retailer bought a shirt at wholesale and marked it up 80% to its initial retail price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?
1
2
3
4
5
A markup of 100% implies 200% of the wholesale price.
According to the prompt, 180% of the wholesale price = $45.
To calculate 200% of the wholesale price, we can solve the following proportion:
(180%)/45 = (200%)/x
180/45 = 200/x
4 = 200/x
4x = 200
x = 50.
Since the final selling price = $50 and the initial selling price = $45, the increase in the selling price = 50-45 = 5.
The correct answer is E.
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As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
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Scott@TargetTestPrep
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We can let x = the increased price and create the following proportion:A retailer bought a shirt at wholesale and marked it up 80% to its initial retail price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?
1
2
3
4
5
1.8/45 = 2/x
1.8x = 90
x = 90/1.8 = 50
Thus, the item needs to be marked up by 5 more dollars.
Answer: E
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