## A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup ##### This topic has expert replies Moderator Posts: 7106 Joined: Thu Sep 07, 2017 4:43 pm Followed by:23 members ### A furniture dealer purchased a desk for$150 and then set the selling price equal to the purchase price plus a markup

by BTGmoderatorDC » Thu Aug 11, 2022 2:37 am

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## Global Stats

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk? A.$40
B. $60 C.$80
D. $90 E.$100

OA E

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### Re: A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a marku by [email protected] » Thu Aug 11, 2022 7:29 am BTGmoderatorDC wrote: Thu Aug 11, 2022 2:37 am A furniture dealer purchased a desk for$150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?

A. $40 B.$60
C. $80 D.$90
E. $100 OA E Source: GMAT Prep Let S = the selling price The dealer ... set the selling price equal to purchasing price ($150) plus a markup that was 40% of selling price.
So, the markup = 0.4S
In other words: S = 150 + 0.4S
Subtract 0.4S from both sides to get: 0.6S = 150
Solve: S = 250
In other words, the selling price was $250 What was the dealer's gross profit from the purchase and the sale of the desk? The profit =$250 - $150 =$100

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### Re: A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a marku by [email protected] » Thu Jan 12, 2023 6:14 pm BTGmoderatorDC wrote: Thu Aug 11, 2022 2:37 am A furniture dealer purchased a desk for$150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?

A. $40 B.$60
C. $80 D.$90
E. $100 OA E Source: GMAT Prep We are given that a furniture dealer purchased a desk for$150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price.

We can create the following equation in which s = the selling price.

150 + 0.4s = s

150 = 0.6s

1,500 = 6s

250 = s

Now we can determine the gross profit, which is revenue – cost.
Gross profit = $250 –$150 = \$100