BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

A furniture dealer purchased a desk

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 126
Joined: Wed Jun 24, 2009 1:12 pm
Location: Montreal
Thanked: 2 times
GMAT Score:510

A furniture dealer purchased a desk

by ssuarezo » Wed Jun 16, 2010 5:29 pm
A furniture dealer purchased a desk for 150, and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit fromthe purchase and the sale of the desk?

40
60
80
90
100

OA 100

Thanks
Silvia.
Top
Source: — Problem Solving |
User avatar
Master | Next Rank: 500 Posts
Posts: 294
Joined: Wed May 05, 2010 4:01 am
Location: india
Thanked: 57 times

by amising6 » Wed Jun 16, 2010 5:35 pm
A furniture dealer purchased a desk for 150, and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit fromthe purchase and the sale of the desk?

40
60
80
90
100


soln: dealer purchase price =150
selling price put by dealer sp= 150+ 40%of sp
sp= 150+(40/100)*sp
sp= 150+0.4 sp
0.6 sp= 150
sp= (150/0.6)=250


so dealer gross profit = Selling price - purchase price
= 250 - 150
=100
Ideation without execution is delusion
Top
Master | Next Rank: 500 Posts
Posts: 126
Joined: Wed Jun 24, 2009 1:12 pm
Location: Montreal
Thanked: 2 times
GMAT Score:510

by ssuarezo » Wed Jun 16, 2010 6:33 pm
amising6 wrote: soln: dealer purchase price =150
selling price put by dealer sp= 150+ 40%of sp
sp= 150+(40/100)*sp
sp= 150+0.4 sp
0.6 sp= 150
sp= (150/0.6)=250


so dealer gross profit = Selling price - purchase price
= 250 - 150
=100
Thanks again Amising6
It seems so logic when I see it: if I take 40% of SP as a markup, then 150 is the 60% ... I completely missed that part.
Thanks for your time.
Silvia
Top
Newbie | Next Rank: 10 Posts
Posts: 7
Joined: Thu Nov 29, 2012 6:35 am

by MaRLo » Tue Dec 04, 2012 4:39 am
let S be selling price, and purchasing price = 150

"and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price"

S = 150 + 0.4S

0.6S = 150

S = 250

Gross profit = Selling price - purchase price

= 250-150

= 100
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 359
Joined: Wed Mar 11, 2009 4:37 am
Location: Kolkata, India
Thanked: 50 times
Followed by:2 members

by Abhishek009 » Wed Jan 16, 2013 10:16 am
ssuarezo wrote:A furniture dealer purchased a desk for 150, and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit fromthe purchase and the sale of the desk?

40
60
80
90
100

OA 100

Thanks
Silvia.
S = CP + 0.4S

0.6S = 150

S = 150/0.6 = 250

As we know Sp = Cp + P

So our Profit in this case is 40% of Sp = 40% of 250 => 100..


[ Generally we find problems of Profit on loss where we find profit as a % of Cp , here we gotta find Profit as a % of Sp ]
Abhishek
Top
Post new topic Post Reply
• Page 1 of 1