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by nahid078 » Sun Aug 31, 2014 8:00 am
if a commission of 10% is given on the market price of a book the publisher gained 20% . if the commission is increased to 15% the gain is ?
a . 50/3%
b. 40/3%
c. 91/6%
d. none
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by [email protected] » Sun Aug 31, 2014 10:20 am
Hi nahid078,

What is the source of this question? I ask because it's not written in proper GMAT "format" and the language is unclear. For example, who is receiving the commission? Is the commission going back to the publisher or is the commission removed from the publisher's profit?

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by nahid078 » Sun Aug 31, 2014 1:03 pm
Hello rich,
I found this on a page. Some people were answering there. But iI found it unclear and vague. I didn't get any clue to solve it. So I thought to submit here. If anybody could explain it. I am sorry if I did any wrong. I mean am sorry If it costs anyone's valuable time in vain. Thanks for the reply.
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by GMATinsight » Tue Sep 02, 2014 8:54 pm
nahid078 wrote:if a commission of 10% is given on the market price of a book the publisher gained 20% . if the commission is increased to 15% the gain is ?
a . 50/3%
b. 40/3%
c. 91/6%
d. none
Let's say the cost of book = 100
The selling price of the book to publisher after 10% commission = 120

The selling price of the book to publisher after 10% commission = 90% of Market price

i.e Market price = 120/0.9 = 133.33

New Commission = 15% of 133.33 = 20
The selling price of the book to publisher after 15% commission = 133.33-20 = 113.33

Profit% = 13.33 = 40/3

Answer: Option B
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