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
Target Test Prep is 20% off right now!
Use code FLASH20
Available with Beat the GMAT members only code
MORE DETAILS
mgmat-ps 4
This topic has expert replies
-
pradeepkaushal9518
- Legendary Member
- Posts: 1309
- Joined: Wed Mar 17, 2010 11:41 pm
- Thanked: 33 times
- Followed by:5 members
-
GMATGuruNY
- GMAT Instructor
- Posts: 15539
- Joined: Tue May 25, 2010 12:04 pm
- Location: New York, NY
- Thanked: 13060 times
- Followed by:1906 members
- GMAT Score:790
One approach would be to plug in the answer choices, which represent the increase needed from 45 to achieve a 100% markup.pradeepkaushal9518 wrote: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
Let w = wholesale price.
C)
100% markup = 45+3 = 48.
w = 48/2 = 24. (Since a 100% markup is the wholesale price doubled.)
Now let's see whether w=24 gives us an initial markup of $45:
80% of 24 = .8*24 = 19.2.
Initial mark-up = 24 + 19.2 = 43.2.
Too small. Need a bigger answer.
D)
100% markup = 45+4 = 49.
w = 49/2 = 24.5
Incorrect. The wholesale price must be an integer since the initial markup = 45.
The correct answer is E.
Here's the algebraic solution:
A retailer marked it up 80% to...45:
1.8w = 45
w = 45/1.8 = 450/18 = 25
100% markup of the wholesale price:
2w = 2*25 = 50. (A 100% mark-up means the wholesale price doubled.)
100% markup - initial markup = 50-45 = 5.
The correct answer is E.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
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].
Student Review #1
Student Review #2
Student Review #3
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].
Student Review #1
Student Review #2
Student Review #3
-
rohit_gmat
- Master | Next Rank: 500 Posts
- Posts: 158
- Joined: Wed Jun 16, 2010 8:21 am
- Thanked: 13 times
- Followed by:1 members
Dear GMATGuru,GMATGuruNY wrote:One approach would be to plug in the answer choices, which represent the increase needed from 45 to achieve a 100% markup.pradeepkaushal9518 wrote: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
Let w = wholesale price.
C)
100% markup = 45+3 = 48.
w = 48/2 = 24. (Since a 100% markup is the wholesale price doubled.)
Now let's see whether w=24 gives us an initial markup of $45:
80% of 24 = .8*24 = 19.2.
Initial mark-up = 24 + 19.2 = 43.2.
Too small. Need a bigger answer.
D)
100% markup = 45+4 = 49.
w = 49/2 = 24.5
Incorrect. The wholesale price must be an integer since the initial markup = 45.
The correct answer is E.
Here's the algebraic solution:
A retailer marked it up 80% to...45:
1.8w = 45
w = 45/1.8 = 450/18 = 25
100% markup of the wholesale price:
2w = 2*25 = 50. (A 100% mark-up means the wholesale price doubled.)
100% markup - initial markup = 50-45 = 5.
The correct answer is E.
Isnt the algebraic solution much faster in this case?
What you recommend?
