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Register now and save up to $200 Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code ## Quicker way tagged by: Brent@GMATPrepNow This topic has 4 expert replies and 0 member replies eitijan Master | Next Rank: 500 Posts Joined 30 Jan 2016 Posted: 157 messages Thanked: 1 times #### Quicker way 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?

OA D

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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, glamupdays 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 GMATGuruNY GMAT Instructor Joined 25 May 2010 Posted: 13591 messages Followed by: 1796 members Thanked: 13055 times GMAT Score: 790 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 Matt@VeritasPrep GMAT Instructor Joined 12 Sep 2012 Posted: 2640 messages Followed by: 113 members Thanked: 625 times Target GMAT Score: V51 GMAT Score: 780 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! ### GMAT/MBA Expert Brent@GMATPrepNow GMAT Instructor Joined 08 Dec 2008 Posted: 11006 messages Followed by: 1217 members Thanked: 5254 times GMAT Score: 770 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 dealerâ€™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%

Cheers,
Brent

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