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
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup
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Let S = the selling priceBTGmoderatorDC wrote: ↑Thu Aug 11, 2022 2:37 amA 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
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
Answer: E
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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.BTGmoderatorDC wrote: ↑Thu Aug 11, 2022 2:37 amA 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 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
Answer: E
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