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An appliance dealer bought an answering machine

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by NandishSS » Tue Jul 26, 2016 9:56 pm
An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?
A) $99
B) $108
C) $110
D) $117
E) $120

OA:E
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by GMATGuruNY » Wed Jul 27, 2016 3:23 am
NandishSS wrote:An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?
A) $99
B) $108
C) $110
D) $117
E) $120
Profit = 20% of wholesale price = (20/100)(90) = $18.

We can PLUG IN THE ANSWERS, which represent the retail price.
Since the discount = 10% = 1/10, and the profit is an INTEGER VALUE, the correct answer choice must be a MULTIPLE OF 10.
Eliminate A, B and D.
When the correct answer choice is plugged in, a profit of $18 will be yielded.

C: 110
Discounted price = $110 - (10% of $110) = 110 - 11 = $99.
Profit = (discounted price) - (wholesale price) = 99-90 = $9.
Since the profit is too small, the retail price must be GREATER.

The correct answer is E.

E: 120
Discounted price = $120 - (10% of $120) = 120 - 12 = $108.
Profit = (discounted price) - (wholesale price) = 108-90 = $18.
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by AbdurRakib » Wed Jul 27, 2016 5:41 am
NandishSS wrote:An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?
A) $99
B) $108
C) $110
D) $117
E) $120

OA:E
Let the added price to the wholesale price=x,thus retail price=(90+x)

So selling price of the product=(90+x)(90/100)

Now we can draw that,
(90+x)(90/100)-90=90*(20/100)
or,(90+x)(9/10)-90=18
or,90+x=1080/9
or,x=120-90
or,x=30

Therefore retail price=(90+30)=120

Correct Answer E
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by [email protected] » Wed Jul 27, 2016 6:05 pm
Hi NandishSS,

This question has some great logical shortcuts in it that can help you to avoid most of the 'math' involved.

To start, we know that the Wholesale Price was $90. Later, we're told that the dealer made a 20% profit on the Wholesale Price....

(20%)($90) =
(.2)($90) =
$18

Wholesale Price + Profit = $90 + $18 = $108

However, we were told that the Retail Price was DISCOUNTED by 10% (to get down to $108). We're asked for that original Retail Price.

Whatever that retail price was, we know that it was GREATER than $108.

10% of $108 is a little over $10, so that discount had to be GREATER than $10...

$108 + (> $10) = Retail Price > $118

There's only one answer that fits:

Final Answer: E

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by Matt@VeritasPrep » Thu Aug 04, 2016 9:12 pm
We know the dealer sold the machine for $90 + (20% of $90), or $108.

We know this is 10% less than retail, so

108 = Retail - 10%

108 = 90% of Retail

108 = .9*Retail

1080 = 9*Retail

120 = Retail
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