Gross profit

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billyr: Senior | Next Rank: 100 Posts; Posts: 41; Joined: Tue Dec 16, 2008 11:53 pm

by billyr » Mon Feb 23, 2009 8:09 am

A furniture dealer purchase a desk for 150 and then set the selling price plus a mark up that was 40% of the selling price. If the dealer sold the desk at selling price, what was the amount the dealer's gross profit from the purchase and the sale of the desk?

a)20)
b)40
c)60
d)100
e)120

the answer is d, but i always got 60--->(1.4x150)-150=60

thanks

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Source: Beat The GMAT — Problem Solving | Mon Feb 23, 2009 8:09 am

x2suresh: Master | Next Rank: 500 Posts; Posts: 258; Joined: Thu Aug 07, 2008 5:32 am; Thanked: 16 times

Re: Gross profit

by x2suresh » Mon Feb 23, 2009 8:59 am

billyr wrote:A furniture dealer purchase a desk for 150 and then set the selling price plus a mark up that was 40% of the selling price. If the dealer sold the desk at selling price, what was the amount the dealer's gross profit from the purchase and the sale of the desk?

a)20)
b)40
c)60
d)100
e)120

the answer is d, but i always got 60--->(1.4x150)-150=60

thanks

There are lot of type mistakes./ missing important setences in the question. Please double check the question whether you posted correctly/or not.

Here is the original question:
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a mrkup thas was 40 percent of the selling price. if the dealer sold the desk at the selling price, what was the amount of the dealer´s profit frmo the purchase and the sale of the desk ?

$40
$60
$80
$90
$100

S= selling price

S = 150+0.4S --> 0.6S=150
S = 250

GP = 250-150=100

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billyr: Senior | Next Rank: 100 Posts; Posts: 41; Joined: Tue Dec 16, 2008 11:53 pm

Re: Gross profit

by billyr » Mon Feb 23, 2009 10:26 am

x2suresh wrote:
billyr wrote:A furniture dealer purchase a desk for 150 and then set the selling price plus a mark up that was 40% of the selling price. If the dealer sold the desk at selling price, what was the amount the dealer's gross profit from the purchase and the sale of the desk?

a)20)
b)40
c)60
d)100
e)120

the answer is d, but i always got 60--->(1.4x150)-150=60

thanks
There are lot of type mistakes./ missing important setences in the question. Please double check the question whether you posted correctly/or not.

Here is the original question:
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a mrkup thas was 40 percent of the selling price. if the dealer sold the desk at the selling price, what was the amount of the dealer´s profit frmo the purchase and the sale of the desk ?

$40
$60
$80
$90
$100

S= selling price

S = 150+0.4S --> 0.6S=150
S = 250

GP = 250-150=100

thanks for correcting my error, i miss type some of the information.

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