The marked price of a laptop is 40% higher than the cost

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swerve: Legendary Member; Posts: 2499; Joined: Sun Oct 29, 2017 2:04 pm; Followed by:6 members

The marked price of a laptop is 40% higher than the cost

by swerve » Wed Jul 04, 2018 3:02 pm

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The market price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the market price, what is the profit percent after selling the laptop?

A. 6%
B. 12%
C. 18%
D. 20%
E. Cannot be determined

The OA is B.

Please, can anyone explain this PS question? I tried to solve it but I can't get the correct answer. I need help. Thanks.

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Source: Beat The GMAT — Problem Solving | Wed Jul 04, 2018 3:02 pm

Shahrukh_mbabreakspace: Senior | Next Rank: 100 Posts; Posts: 32; Joined: Mon Jul 02, 2018 1:56 am; Followed by:2 members

by Shahrukh_mbabreakspace » Wed Jul 04, 2018 10:37 pm

Let CP be x
So, MP becomes 1.4x

Discount is 20%

So, Selling Price is 80% of Marked Price
=> SP= 0.8*1.4x= 1.12x

So, clearly profit is 1.12x-x/x*100= 12%

________________________________________

Shahrukh Moin Khan
QA Mentor at Breakspace
https://www.mbabreakspace.com
PGDM: IIM Calcutta
B.Tech IIT Roorkee

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dvijay012: Newbie | Next Rank: 10 Posts; Posts: 1; Joined: Wed Jul 04, 2018 10:54 pm

by dvijay012 » Wed Jul 04, 2018 11:50 pm

B. 12%

Let the CP be 100, then marked price=140
SP = 140 - 20% of 140 = 140 - 28 = 112
Hence % profit=12

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

by Scott@TargetTestPrep » Sat Jul 07, 2018 5:31 pm

swerve wrote:The market price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the market price, what is the profit percent after selling the laptop?

A. 6%
B. 12%
C. 18%
D. 20%
E. Cannot be determined

We can let the cost price be c. Thus, the market price is 1.4c before the discount, and after the discount, the market price is 0.8 x 1.4c = 1.12c. We see that this is 12% more than the cost price, so the profit is 12%.

Answer: B

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