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Gross profit question

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Gross profit question

by Baldini » Fri Mar 06, 2009 8:23 am
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 from the purchase and the sale of the desk?

a. 40$
b. 60$
c. 80$
d. 90$
e. 100$

OA is e

Can someone please explain how to get to this answer... must be the GMAT friday evening sickness I'm having.

thanks
GMAX
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by Mr2Bits » Fri Mar 06, 2009 8:45 am
Problem is very tricky when it comes to being worded. It is saying that the delaer sold the desk at $150 + 40% of the final selling price. So you need to make an equation that says 60% times what = 150.

So you can write this as X*.6 = 150 = 250 profit is 250-150 = 100

You can double check your work by multiplying 250*.40 = 150
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by bmlaud » Fri Mar 06, 2009 9:01 am
S.P = 150 +0.4* S.P
or S.P = 250$
Profit = 250-150 = 100$
"Great works are performed not by strength but by perseverance."
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