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
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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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BTGmoderatorLU
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deloitte247
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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
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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Solution:BTGmoderatorLU wrote: ↑Mon Mar 08, 2021 5:57 amGMAT 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
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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