Source: GMAT Paper Tests
A retailer sold an appliance for 30 percent above the cost, which represented a gross profit of $21.00. For what price did the retailer sell the appliance?
A. $27.30
B. $51.00
C. $63.00
D. $70.00
E. $91.00
The OA is E
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A retailer sold an appliance for 30 percent above the cost, which represented a gross profit of $21.00...
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BTGmoderatorLU
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Solution:BTGmoderatorLU wrote: ↑Thu Oct 22, 2020 8:32 amSource: GMAT Paper Tests
A retailer sold an appliance for 30 percent above the cost, which represented a gross profit of $21.00. For what price did the retailer sell the appliance?
A. $27.30
B. $51.00
C. $63.00
D. $70.00
E. $91.00
The OA is E
We can let x = the cost of the appliance, and create the equation:
Revenue - Cost = Profit
1.3x - x = 21
0.3x = 21
x = 21/0.3 = 210/3 = 70
Since the selling price (or revenue) of the appliance is 1.3x, the selling price is 1.3(70) = $91.
Answer: E
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