A store purchased an article at a wholesale price of $75 and sold it at two successive discounts of 20% and 16.67%

BTGmoderatorDC wrote: ↑

Tue May 05, 2020 6:14 pm

A store purchased an article at a wholesale price of $75 and sold it at two successive discounts of 20% and 16.67% respectively, making a profit of 33.3% on the whole price of the article. The store sold another similar article at the same price, making a loss of 33.3% on the whole price. If the second article has a mark-up of 200% over its retail selling price, find by what percentage the mark-up price of 2nd article is more than that of 1st article?

A. 50
B. 75
C. 100
D. 125
E. 200

OA E

Source: e-GMAT

Given the wholesale price of the first article = $75;

Price after the first discount = $75 – 20% of 75 = $60;

Price after the second discount = $60 – 16.67% of 60 = 60 – 10 = $50

Since sale price, $50 is the price that includes the profit of 33.33%, the wholesale price of the 1st article = 50/(100 + 33.33)% = 50/(4/3) = (50*3)/4 = $37.50

We are also given that the sale price of the 2nd article = sale price of the 1st article = $50

Since sale price, $50 is the price that includes the loss of 33.33%, the wholesale price of the 2nd article = 50/(100 – 33.33)% = $75

The wholesale price of 2nd article is more than that of 1st article by [(75 – 37.5)/37.5]*100% = 200%

The correct answer: E

Hope this helps!

-Jay
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