• NEW! FREE Beat The GMAT Quizzes
Hundreds of Questions Highly Detailed Reporting Expert Explanations
• 7 CATs FREE!
If you earn 100 Forum Points

Engage in the Beat The GMAT forums to earn
100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## A computer appliance dealer bought a computer ##### This topic has 3 expert replies and 1 member reply ### Top Member ## A computer appliance dealer bought a computer A computer appliance dealer bought a computer at a wholesale price of$500 and then sold it at a 20 percent discount off the suggested retail price. If the dealer made a 12 percent profit on the wholesale price, what was the suggested retail price of the computer?

A) $560 B)$580
C) $660 D)$700
E) $730 Please show me the best solution in this? OA D ### GMAT/MBA Expert GMAT Instructor Joined 09 Apr 2015 Posted: 1465 messages Followed by: 19 members Upvotes: 39 Top Reply lheiannie07 wrote: A computer appliance dealer bought a computer at a wholesale price of$500 and then sold it at a 20 percent discount off the suggested retail price. If the dealer made a 12 percent profit on the wholesale price, what was the suggested retail price of the computer?

A) $560 B)$580
C) $660 D)$700
E) $730 We can let r = the suggested retail price of the computer. Since the dealer sold the computer at a 20% discount off the suggested retail price, the dealer sold the computer for 0.8r. Since the dealer made a 12% profit, we can create the following equation to determine r: revenue - cost = 0.12(cost) 0.8r - 500 = 0.12(500) 0.8r - 500 = 60 0.8r = 560 r = 560/0.8 = 700 Answer:D _________________ Jeffrey Miller Head of GMAT Instruction jeff@targettestprep.com See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15383 messages Followed by: 1872 members Upvotes: 13060 GMAT Score: 790 Top Reply lheiannie07 wrote: A computer appliance dealer bought a computer at a wholesale price of$500 and then sold it at a 20 percent discount off the suggested retail price. If the dealer made a 12 percent profit on the wholesale price, what was the suggested retail price of the computer?

A) $560 B)$580
C) $660 D)$700
E) $730 Profit = 12% of the$500 wholesale price = (12/100)(500) = 60.
Thus:
Selling price = (wholesale price) + (profit) = 500+60 = 560.

We can PLUG IN THE ANSWERS, which represent the retail price.
When the retail price is reduced by 20%, the result will be the $560 selling price. Answer choice D: 700 700 - (20% of 700) = 700 - 140 = 560. Success! The correct answer is D. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 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. Senior | Next Rank: 100 Posts Joined 15 Jan 2018 Posted: 83 messages Start by identifying gkey facts separately: 1) Selling price = 20% off the Retail price (R) is the same as 80% of R = 0.8R 2) Profit = 12% of 500 = 0.12 *500 = 60 3) Profit = Selling price - Purchase price So, substituting all facts into equation (3) gives 60 = 0.8R - 500 Rearranging gives 0.8R = 560 x10 gives 8R = 5600 /8 gives R = 700 ANSWER = D ### GMAT/MBA Expert GMAT Instructor Joined 04 Oct 2017 Posted: 551 messages Followed by: 11 members Upvotes: 180 Hello lheiannie07. Let's take a look at your question. A computer appliance dealer bought a computer at a wholesale price of$500 and then sold it at a 20 percent discount off the suggested retail price. If the dealer made a 12 percent profit on the wholesale price, it implies that he sold the computer at a price of $$500+500\cdot12\%=500+500\cdot0.12=500+60=560\ \text{dollars}.$$ Now, let x the suggested price, then $$x-20\%\cdot x=80\%\cdot x=0.8\cdot x=560\ \Leftrightarrow\ x=\frac{560}{0.8}=700\ \text{dollars}.$$ Hence, the correct answer is the option D=$700. I hope this explanation may help you. I'm available if you'd like a follow-up. Regards. _________________ GMAT Prep From The Economist We offer 70+ point score improvement money back guarantee. Our average student improves 98 points. Free 7-Day Test Prep with Economist GMAT Tutor - Receive free access to the top-rated GMAT prep course including a 1-on-1 strategy session, 2 full-length tests, and 5 ask-a-tutor messages. Get started now. • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

Available with Beat the GMAT members only code

• FREE GMAT Exam
Know how you'd score today for \$0

Available with Beat the GMAT members only code

• Get 300+ Practice Questions

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

• 5-Day Free Trial
5-day free, full-access trial TTP Quant

Available with Beat the GMAT members only code

### Top First Responders*

1 Ian Stewart 41 first replies
2 Brent@GMATPrepNow 36 first replies
3 Scott@TargetTestPrep 33 first replies
4 Jay@ManhattanReview 30 first replies
5 GMATGuruNY 23 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

### Most Active Experts

1 Scott@TargetTestPrep

Target Test Prep

159 posts
2 Max@Math Revolution

Math Revolution

91 posts
3 Brent@GMATPrepNow

GMAT Prep Now Teacher

56 posts
4 Ian Stewart

GMATiX Teacher

50 posts
5 GMATGuruNY

The Princeton Review Teacher

35 posts
See More Top Beat The GMAT Experts