Jennifer can buy watches at a price of B dollars per watch, which she marks up by a certain percentage before selling...

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Mon Oct 26, 2020 4:28 am

Magoosh

Jennifer can buy watches at a price of B dollars per watch, which she marks up by a percentage before selling. If she makes a total profit of T by selling N watches, then in terms of T, B and N, what is the percent of the markup form her buy price to her sell price?

A. 100T/(NB)
B. TB/(100N)
C. 100TN/B
D. ((T/N) – B)/(100B)
E. 100(T – NB)/N

OA A

Solution:

The profit (or markup) per watch is T/N. So the markup is:

(T/N)/B x 100 = 100T / (NB)

percent of the purchase price.

Alternate Solution:

Jennifer’s profit per watch is T/N. Using the formula for profit, we can compute Jennifer’s sell price:

profit = sell price – buy price

T/N = sell price – B

T/N + B = sell price

We now use the percent markup formula:

% markup = (Sell price – Buy price) / Buy price x 100

% markup = (T/N + B – B) / B x 100

% markup = T/N / B x 100

% markup = T / (BN) x 100

% markup = 100T / (BN)


Answer: A