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A retailer sold an appliance for $80. If the retailer's gross profit on the appliance was 25 percent of the...

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A retailer sold an appliance for $80. If the retailer's gross profit on the appliance was 25 percent of the...

by BTGmoderatorLU » Mon Mar 08, 2021 5:57 am

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A retailer sold an appliance for $80. If the retailer's gross profit on the appliance was 25 percent of the retailer's cost for the appliance, how many dollars was the retailer's gross profit?

A. $10
B. $16
C. $20
D. $24
E. $25

OA B
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Re: A retailer sold an appliance for $80. If the retailer's gross profit on the appliance was 25 percent of the...

by deloitte247 » Sun Mar 14, 2021 2:55 pm
Selling price = $80
Gross profit = 25% of the cost price
Profit = selling price - cost price
Let cost price = c
25% * c = 80 - c
0.25c = 80 - c
$$c=\frac{80}{1.25}=64$$
Gross profit = 25% * 64 = $16
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Re: A retailer sold an appliance for $80. If the retailer's gross profit on the appliance was 25 percent of the...

by Scott@TargetTestPrep » Sat Mar 20, 2021 1:35 pm
BTGmoderatorLU wrote: ↑
Mon Mar 08, 2021 5:57 am
 GMAT Prep

A retailer sold an appliance for $80. If the retailer's gross profit on the appliance was 25 percent of the retailer's cost for the appliance, how many dollars was the retailer's gross profit?

A. $10
B. $16
C. $20
D. $24
E. $25

OA B
Solution:

We can let x = the retailer's cost for the appliance and create the equation:

x + 0.25x = 80

1.25x = 80

x = 80/1.25 = 64

The cost of the appliance was $64. Therefore, the profit is 0.25(64) = $16.

Answer: B

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