• NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    Hundreds of Questions Highly Detailed Reporting Expert Explanations TAKE A FREE GMAT QUIZ
  • 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 Prep
    VERITAS PRACTICE GMAT EXAMS
    Earn 10 Points Per Post
    Earn 10 Points Per Thanks
    Earn 10 Points Per Upvote
    REDEEM NOW

A merchant prices a television at 60 percent above . . . .

This topic has 2 expert replies and 0 member replies

Top Member

A merchant prices a television at 60 percent above . . . .

Post
A merchant prices a television at 60 percent above wholesale. For a Presidents’ Day sale, the merchant marks the television down by 25 percent. If he sells the television during the Presidents’ Day sale, what percentage over the wholesale price will he have earned?

A. 75
B. 50
C. 35
D. 25
E. 20

The OA is option E.

This is a very real question. I would like to know how to solve it? Experts, may you give me a detailed explanation here? I'd be thankful.

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

Top Reply
Post
Vincen wrote:
A merchant prices a television at 60 percent above wholesale. For a Presidents’ Day sale, the merchant marks the television down by 25 percent. If he sells the television during the Presidents’ Day sale, what percentage over the wholesale price will he have earned?

A. 75
B. 50
C. 35
D. 25
E. 20
Let the wholesale price = 100.
After a 60% markup, the regular selling price = 100 + (60% of 100) = 100+60 = 160.
After a 25% discount, the discounted selling price = 160 - (25% of 160) = 160 - 40 = 120.
Profit = (discounted selling price) - (wholesale price) = 120-100 = 20.
Thus:
profit/wholesale = 20/100 = 20%.

The correct answer is E.

_________________
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

  • +1 Upvote Post
  • Quote
  • Flag
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.

GMAT/MBA Expert

Top Reply
Post
Quote:
A merchant prices a television at 60 percent above wholesale. For a Presidents’ Day sale, the merchant marks the television down by 25 percent. If he sells the television during the Presidents’ Day sale, what percentage over the wholesale price will he have earned?

A. 75
B. 50
C. 35
D. 25
E. 20

The OA is option E.

This is a very real question. I would like to know how to solve it? Experts, may you give me a detailed explanation here? I'd be thankful.
Hi Vincen,
Let's take a look at your question.

Let the wholesale price of the television be '$x", then,
$$\text{Price of television with 60% increase}=x+60\%x=x+0.6x=1.6x$$

At Presidents’ Day sale, the television is marked down by 20%.
Let's first calculate the discount offered at Presidents’ Day sale,
$$Discount=\left(1.6x\right)\left(25\%\right)$$
$$Discount=\left(1.6x\right)\left(0.25\right)$$

New Price after discount will be:
$$\text{New Price after discount} =\ 1.6x-\left(1.6x\right)\left(0.25\right)$$
$$\text{New Price after discount}=\ 1.6x\left(1-0.25\right)$$
$$\text{New Price after discount} =\ 1.6x\left(0.75\right)$$
$$\text{New Price after discount} =\ 1.2x$$
To find the percentage earned over the whole sale price, we will rewrite this expression,
$$\text{New Price after discount} =\ (1+0.2)x$$
$$\text{New Price after discount} =\ (1+\dfrac{20}{100})x$$
$$\dfrac{20}{100} \text{represents 20 percent.}$$

Therefore, the merchant earned 20% profit over the whole sale price.

Hence, Option E is correct.

Hope it helps.
I am available if you'd like any follow up.

_________________
GMAT Prep From The Economist
We offer 70+ point score improvement money back guarantee.
Our average student improves 98 points.

  • +1 Upvote Post
  • Quote
  • Flag
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.
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • The Princeton Review
    FREE GMAT Exam
    Know how you'd score today for $0

    Available with Beat the GMAT members only code

    MORE DETAILS
    The Princeton Review
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider

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 image description Scott@TargetTestPrep

Target Test Prep

159 posts
2 image description Max@Math Revolution

Math Revolution

91 posts
3 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

56 posts
4 image description Ian Stewart

GMATiX Teacher

50 posts
5 image description GMATGuruNY

The Princeton Review Teacher

35 posts
See More Top Beat The GMAT Experts