• Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep

Quicker way

This topic has 4 expert replies and 0 member replies
eitijan Master | Next Rank: 500 Posts Default Avatar
Joined
30 Jan 2016
Posted:
157 messages
Thanked:
1 times

Quicker way

Post Mon Apr 25, 2016 4:55 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent
    markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the
    dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?
    (A) 7% loss
    (B) 13% loss
    (C) 7% profit
    (D) 13% profit
    (E) 15% profit


    It took me a lot of time to solve this question involving all the calculations. Is there any quicker way to solve it?

    Experts, please comment.
    OA D

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
    Post Mon Apr 25, 2016 5:08 am
    eitijan wrote:
    A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent
    markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the
    dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?
    (A) 7% loss
    (B) 13% loss
    (C) 7% profit
    (D) 13% profit
    (E) 15% profit
    54 cameras yield a 20% profit, while 6 cameras suffer a 50% loss.
    Average for all 60 cameras = (54*20 - 6*50)/60 = 780/60 = 13.

    The correct answer is D.

    _________________
    Mitch Hunt
    GMAT Private Tutor
    GMATGuruNY@gmail.com
    If you find one of my posts helpful, please take a moment to click on the "Thank" icon.
    Available for tutoring in NYC and long-distance.
    For more information, please email me at GMATGuruNY@gmail.com.

    Thanked by: ob00gie
    Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.
    Post Mon Apr 25, 2016 5:09 am
    Alternate approach:

    Since the question asks for a PERCENTAGE, ignore the numbers given.
    Plug in values that satisfy the given conditions and make the math easy.
    The fraction of cameras not sold = 6/60 = 1/10.

    Let the number of cameras ordered = 10.
    Let the cost per camera = 10.
    Total cost = 10*10 = 100.

    The number not sold = (1/10)10 = 1.
    For this one camera, the refund received = .5(10) = 5.

    The number of cameras sold = 9.
    With a markup of 20%, the selling price = 12.
    Total revenue = 9*12 = 108.

    Refund + revenue = 5+108 = 113, a profit of 13%.

    The correct answer is D.

    _________________
    Mitch Hunt
    GMAT Private Tutor
    GMATGuruNY@gmail.com
    If you find one of my posts helpful, please take a moment to click on the "Thank" icon.
    Available for tutoring in NYC and long-distance.
    For more information, please email me at GMATGuruNY@gmail.com.

    Thanked by: ob00gie
    Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.

    GMAT/MBA Expert

    Post Wed Apr 27, 2016 1:49 pm
    Since the answers are in terms of percentages, just stick with percentages and ignore the actual cost.

    Suppose cost per camera = c. Then the dealer's cost = 60 * c.

    The gross is 54*.2c - 6*.5c => 7.8c. (We made 20% of c on 54 cameras, and lost 50% of c on 6 cameras.)

    That leaves us with a Profit/Cost ratio of 7.8c / 60c, or 7.8/60, or 13%.

    Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!
    Post Wed Aug 23, 2017 4:37 pm
    eitijan wrote:
    A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent
    markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the
    dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?
    (A) 7% loss
    (B) 13% loss
    (C) 7% profit
    (D) 13% profit
    (E) 15% profit
    It's important to recognize that we really don't need to use the information about the cameras selling for $250 each. The question boils down to . . .

    54 cameras were sold at a 20% markup, and 6 cameras were (essentially) sold at a 50% markdown. What was the approximate profit or loss as a percent of the dealer’s initial cost for all 60 cameras?

    So, we can assign A NICE value of $100 to the initial cost per camera.
    This means the 60 cameras cost $6000 to buy.

    54 cameras were sold at a 20% markup and 6 cameras were sold at a 50% markdown.
    So, 54 cameras were sold for $120, and 6 cameras were sold for $50.
    (54)($120) + (6)($50) = $6780
    So, the cameras were sold for $6780

    This represents a profit of $780 (eliminate A and B)

    If the initial cost was $6000, we must determine the percentage equivalent to $780/$6000

    $780/$6000 = 78/600 = 13/100 = 13%

    Answer: D

    Cheers,
    Brent

    _________________
    Brent Hanneson – Founder of GMATPrepNow.com
    Use our video course along with Beat The GMAT's free 60-Day Study Guide

    Check out the online reviews of our course
    Come see all of our free resources

    GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMAT’s FREE 60-Day Study Guide and reach your target score in 2 months!

    Best Conversation Starters

    1 Vincen 180 topics
    2 lheiannie07 65 topics
    3 Roland2rule 49 topics
    4 ardz24 40 topics
    5 LUANDATO 16 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    146 posts
    2 image description Rich.C@EMPOWERgma...

    EMPOWERgmat

    103 posts
    3 image description GMATGuruNY

    The Princeton Review Teacher

    100 posts
    4 image description EconomistGMATTutor

    The Economist GMAT Tutor

    92 posts
    5 image description Jay@ManhattanReview

    Manhattan Review

    79 posts
    See More Top Beat The GMAT Experts