A man sold 20 article at $60. So the SP per item is 60/20= $3
And in selling each item at the price of $3 he earns 20% profit
For Profit, SP=CP(1+Rate/100)
3=CP(1+20/100) (I'm not elaborating on the calculation)
CP=$2.5 per item
Now, if he has to incur a 20% loss then he has to lower his SP to below $2.5
For Loss, SP=CP(1-Rate/100)
SP=2.5(1-20/100) (Not elaborating on the calculation)
SP=2
So if he sells each item at $2 he will incur a 20% loss. So for 90 dollars at the rate of 2$/item he will have to sell 90/2=45 items. The Answer is [spoiler]A[/spoiler]. Try and remember the two formulas in bold
How to solve!
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thestartupguy
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Ans is A!GmatKiss wrote:A man sold 20 articles for $60 and gained 20%. How many articles should he sell for $90 to incur a loss 20%?
A. 45
B. 36
C. 40
D. 50
E. 48
its like for 48$ you;ll get 20articles...then for 118$ ???...that leads to 45 articles.
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GMATGuruNY
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Plug in to determine by what fraction the selling price must be reduced to make a 20% loss.GmatKiss wrote:A man sold 20 articles for $60 and gained 20%. How many articles should he sell for $90 to incur a loss 20%?
A. 45
B. 36
C. 40
D. 50
E. 48
Let cost = 10.
Based upon this cost:
Selling price to make a 20% profit = 12.
Selling price to make a 20% loss = 8.
Thus, the selling price needed to make a 20% loss = 8/12 = 2/3 of the selling price needed to make a 20% profit.
In the problem above:
Selling price per article to make 20% profit = 60/20 = 3.
Thus, to make a 20% loss, selling price per article = (2/3)*3 = 2.
Number of articles sold for $90 at this reduced price = 90/2 = 45.
The correct answer is A.
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Followed here and elsewhere by over 1900 test-takers.
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As a tutor, I don't simply teach you how I would approach problems.
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saketk
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Given: 20% profit on selling 20 articles at $60.GmatKiss wrote:A man sold 20 articles for $60 and gained 20%. How many articles should he sell for $90 to incur a loss 20%?
A. 45
B. 36
C. 40
D. 50
E. 48
This means the CP of 20 articles is 60/1.2 = $50 or cost per article is $2.5
also if he sells X articles at $90, the loss is 20%
that means the CP will be 90/0.80 = 900/ 8
simply divide this number by 2.5 and you will get 45 as your answer
