Problem Solving

The profit earned when an article is sold for $ 600 is double the loss incurred when the article is sold for $150. At what price should the article be sold if a profit of 20% is to be earned?

(A)$150
(B) $300
(C) $360
(D)$400
(E) $450

sgr21 wrote:The profit earned when an article is sold for $ 600 is double the loss incurred when the article is sold for $150. At what price should the article be sold if a profit of 20% is to be earned?

(A)$150
(B) $300
(C) $360
(D)$400
(E) $450

Let's start trying plugging in the answers, starting from [spoiler](C)[/spoiler] as usual:

[spoiler](C)[/spoiler] If the article should be sold at $360 to earn a profit of 20%, then the real cost of the article must be 5/6($360) = $300, which if sold at $600 earns a profit of $300, which is double of the loss ($150) if the same is sold at $150. Thus, [spoiler](C)[/spoiler] perfectly works and hence the answer.

Longer approach

Price = X

Profit = 600 - x

Loss = X - 150

(600 - x) = 2 * (X - 150)
900 = 3x
x = 300

Profit = 20% ==> 300* 1.2 = 360

theCodeToGMAT wrote:Longer approach

Price = X

Profit = 600 - x

Loss = X - 150

(600 - x) = 2 * (X - 150)
900 = 3x
x = 300

Profit = 20% ==> 300* 1.2 = 360

[spoiler]Hmm...maze le rahe ho?[/spoiler]

How's that longer, buddy?

sanju09 wrote:

theCodeToGMAT wrote:Longer approach

Price = X

Profit = 600 - x

Loss = X - 150

(600 - x) = 2 * (X - 150)
900 = 3x
x = 300

Profit = 20% ==> 300* 1.2 = 360

[spoiler]Hmm...maze le rahe ho?[/spoiler]

How's that longer, buddy?

haha... I meant that my method is longer than your's.