word problem from gmatprep

smallsorrow · Posted: Sat Oct 11, 2008 9:19 am Post subject: word problem from gmatprep

A funiture dealer purchases a desk for 150$ and then set the selling price equal to the purchasing price plus a mark up that was 40% of the selling pric. If the dealer sold the desk at the selling price what was the amount of his gross profit?
A) 40$
B) 60$
C) 80$
D) 100$
E) 120$

OA follows

cramya · Posted: Sat Oct 11, 2008 9:34 am Post subject:

Let x be the sellling price

Since selling proce is equal to cost price or purchase price + 40% of the selling price(markup)

150 + .4x = x

150 = .6x
x = 250

Gross Profit = 250 - 150 = 100
D)