lukeposada wrote:Need help with this one:
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 percent 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
The answer is e
Another approach would be to plug in the answers, which represent the profit.
Let P=profit, S=selling price, M=mark up.
With each answer, we need to see whether S = 150 + M (because the selling price needs to equal purchase price + markup.)
Answer choice C:
P = 80
S= 80+150 = 230
M = .4(230) = 92.
Does 230 = 150 + 92? No.
We need more profit.
Answer choice D:
P = 90
S= 90+150 = 240
M = .4(240) = 96.
Does 240 = 150 + 96? No.
We need more profit.
The correct answer is E.
Answer choice E:
P = 100
S= 100+150 = 250
M = .4(250) = 100
Does 250 = 150 + 100? Success!
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at
[email protected].
Student Review #1
Student Review #2
Student Review #3
