Problem Solving

msbelasco wrote:This looks to be an easy one, but for some reason the answer I chose was wrong and I can't figure it out.

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup of 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?

$40
$60
$80
$90
$100

neelgandham wrote:Let the purchase price of the desk be P
Let the selling price of the desk be S
Then the selling price = S = P + (40/100)*S
Purchasing price = P = S - (40/100)*S = (60/100)*S = $150
S = $250
Profit = (40/100)*S = $100

msbelasco wrote:This looks to be an easy one, but for some reason the answer I chose was wrong and I can't figure it out.

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup of 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?

$40
$60
$80
$90
$100