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profit problem

This topic has 1 expert reply and 2 member replies
profiler01 Newbie | Next Rank: 10 Posts Default Avatar
Joined
01 Dec 2006
Posted:
1 messages

profit problem

Post Fri Dec 01, 2006 5:21 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    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 Evil

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    kulksnikhil Senior | Next Rank: 100 Posts Default Avatar
    Joined
    23 May 2006
    Posted:
    58 messages
    Thanked:
    2 times
    Post Sat Dec 02, 2006 4:16 am
    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 Evil
    Put in expression,

    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

    Post Fri Sep 29, 2017 2:13 pm
    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.

    Post Fri Sep 29, 2017 4:12 pm
    Quote:
    A 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
    Let S = the selling price

    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 = $100 = E

    Cheers,
    Brent

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