An appliance dealer bought an answering machine

Question

An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?
A) $99
B) $108
C) $110
D) $117
E) $120

OA:E

GMATGuruNY · Answer

NandishSS wrote:An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?
A) $99
B) $108
C) $110
D) $117
E) $120

Profit = 20% of wholesale price = (20/100)(90) = $18.

We can PLUG IN THE ANSWERS, which represent the retail price.
Since the discount = 10% = 1/10, and the profit is an INTEGER VALUE, the correct answer choice must be a MULTIPLE OF 10.
Eliminate A, B and D.
When the correct answer choice is plugged in, a profit of $18 will be yielded.

C: 110
Discounted price = $110 - (10% of $110) = 110 - 11 = $99.
Profit = (discounted price) - (wholesale price) = 99-90 = $9.
Since the profit is too small, the retail price must be GREATER.

The correct answer is E.

E: 120
Discounted price = $120 - (10% of $120) = 120 - 12 = $108.
Profit = (discounted price) - (wholesale price) = 108-90 = $18.
Success!

AbdurRakib · Answer

NandishSS wrote:An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?
A) $99
B) $108
C) $110
D) $117
E) $120

OA:E

Let the added price to the wholesale price=x,thus retail price=(90+x)

So selling price of the product=(90+x)(90/100)

Now we can draw that,
(90+x)(90/100)-90=90*(20/100)
or,(90+x)(9/10)-90=18
or,90+x=1080/9
or,x=120-90
or,x=30

Therefore retail price=(90+30)=120

Correct Answer E

Rich.C@EMPOWERgmat.com · Answer

Hi NandishSS,

This question has some great logical shortcuts in it that can help you to avoid most of the 'math' involved.

To start, we know that the Wholesale Price was $90. Later, we're told that the dealer made a 20% profit on the Wholesale Price....

(20%)($90) =
(.2)($90) =
$18

Wholesale Price + Profit = $90 + $18 = $108

However, we were told that the Retail Price was DISCOUNTED by 10% (to get down to $108). We're asked for that original Retail Price.

Whatever that retail price was, we know that it was GREATER than $108.

10% of $108 is a little over $10, so that discount had to be GREATER than $10...

$108 + (> $10) = Retail Price > $118

There's only one answer that fits:

Final Answer: E

GMAT assassins aren't born, they're made,
Rich

Contact Rich at [email protected]

Matt@VeritasPrep · Answer

We know the dealer sold the machine for $90 + (20% of $90), or $108. We know this is 10% less than retail, so 108 = Retail - 10% 108 = 90% of Retail 108 = .9*Retail 1080 = 9*Retail 120 = Retail

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