BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

the jacket plus

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
GMAT Instructor
Posts: 3650
Joined: Wed Jan 21, 2009 4:27 am
Location: India
Thanked: 267 times
Followed by:80 members
GMAT Score:760

the jacket plus

by sanju09 » Thu May 06, 2010 4:46 am
A merchant purchased a jacket for $60 and then determined a selling price that equaled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant's gross profit on this sale?
(A) $3
(B) $4
(C) $8
(D) $10
(E) $12
The mind is everything. What you think you become. -Lord Buddha



Sanjeev K Saxena
Quantitative Instructor
The Princeton Review - Manya Abroad
Lucknow-226001

www.manyagroup.com
Top
Source: — Problem Solving |
User avatar
Legendary Member
Posts: 1275
Joined: Thu Sep 21, 2006 11:13 pm
Location: Arabian Sea
Thanked: 125 times
Followed by:2 members

by ajith » Thu May 06, 2010 5:02 am
sanju09 wrote:A merchant purchased a jacket for $60 and then determined a selling price that equaled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant's gross profit on this sale?
(A) $3
(B) $4
(C) $8
(D) $10
(E) $12
Let y be the selling price

y = 60 + 0.25y
y = 4/3*60 = 80

Discount = 20/100*80 = 16
Final price = 64
[spoiler]
Gross profit = 64-60 = 4 dollars[/spoiler]
Always borrow money from a pessimist, he doesn't expect to be paid back.
Top
Post new topic Post Reply
• Page 1 of 1