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A chair store sold a certain chair to a collector for 40%

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A chair store sold a certain chair to a collector for 40%

by saxenashobhit » Thu Jul 07, 2011 5:22 am
A chair store sold a certain chair to a collector for 40%more than the store had originally paid for the chair. When the collector tried to resell the chair to the store, the store bought it back at 60%of what the collector had paid. The shop then sold the chair again at a profit of 75%on its buyback price. If the difference between the chair's original cost to the shop and the amount the collector got from reselling it back to the shop is $176, for how much did the shop sell the chair the second time?

$1,243

$1,439

$1,617

$1,851

$2,025

Kaplan question 10 - https://www.scribd.com/doc/58999877/GMAT ... et-6-Quant
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by Frankenstein » Thu Jul 07, 2011 6:45 am
Hi,
Let the cost at which the store bought the chair be c
He sold to collector at 1.4c
Store purchased it back at (1.4c)*(0.6) = 0.84c
It sold back at (0.84x)*(1.75) = 1.47c
Given that c - 0.84c = 176
So, 0.16c = 176
So, c = 1100
So, 1.47c = 1617

Hence, C
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by GMATGuruNY » Thu Jul 07, 2011 7:23 am
saxenashobhit wrote:A chair store sold a certain chair to a collector for 40%more than the store had originally paid for the chair. When the collector tried to resell the chair to the store, the store bought it back at 60%of what the collector had paid. The shop then sold the chair again at a profit of 75%on its buyback price. If the difference between the chair's original cost to the shop and the amount the collector got from reselling it back to the shop is $176, for how much did the shop sell the chair the second time?

$1,243

$1,439

$1,617

$1,851

$2,025

Kaplan question 10 - https://www.scribd.com/doc/58999877/GMAT ... et-6-Quant
Let original cost = 100.
Selling price with 40% increase = 140.
Buyback price = .6*140 = 84.
Difference between original cost and buyback price = 100-84 = 16.
Difference is supposed to be 176.
Since 176/16 = 11, all the numbers above must be multiplied by a factor of 11.
Thus, correct buyback price = 11*84 = 924.
Final selling price with 75% increase = (1.75)*924 = 1617.

The correct answer is C.
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by StoneBlack » Thu Jul 07, 2011 8:53 am
Original Price = a
1st sale price = 1.4a = (a + 0.4x)
Buy Price from collector again: 0.6*1.4x

now,
x - 0.6*1.4x = 176
x = 1100

2nd Sale Price b = 0.6*1.4x(1+0.75)
Replacing x =1100, gives b = 1617.
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