BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

Official Guide13 - PS Q#182 Percent

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Newbie | Next Rank: 10 Posts
Posts: 2
Joined: Wed May 08, 2013 6:39 am
by sps1604 » Thu May 30, 2013 10:09 pm
[/quote] Q#182 A photography dealer ordered 60 model X cameras to be sole for $250 each, which represents a 20 percent markup over the dealer's initial cost for each camera. Of the camera ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of dealer's initial cost. What was dealer's approximate profit or loss as a percent of the dealer's initial cost of 60 cameras?

I solved the question as follows :-

Dealer's Initial cost of camera = x
x+ x/4 = 250
5x/4=250
Hence, x= 200 with markup price as 25

Revenue earned after selling = 54*250 = 13500
Cost incurred = 60*200 - 6*100 = 11400

Profit % = 2100/11400 *100

Please help me understand, where did I go wrong!
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
User avatar
Legendary Member
Posts: 979
Joined: Tue Apr 14, 2009 1:38 amFollowed by: 12 members
Location: Hyderabad, India
Thanked: 49 times
GMAT Score:700

by bubbliiiiiiii » Thu May 30, 2013 10:49 pm
sps1604 wrote:


Dealer's Initial cost of camera = x
x+ x/4 = 250 x/4 represents 25 % whereas profit is 20%. So you should have use x/5 to find cost price
5x/4=250


Please help me understand, where did I go wrong![/quote]
Regards,

Pranay
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Legendary Member
Posts: 979
Joined: Tue Apr 14, 2009 1:38 amFollowed by: 12 members
Location: Hyderabad, India
Thanked: 49 times
GMAT Score:700

by bubbliiiiiiii » Thu May 30, 2013 10:50 pm
Is the answer apprx. equal to 13.7 % Profit?
Regards,

Pranay
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Newbie | Next Rank: 10 Posts
Posts: 2
Joined: Wed May 08, 2013 6:39 am

by sps1604 » Fri May 31, 2013 12:33 am
Is the answer apprx. equal to 13.7 % Profit?
Yes, the answer is 13% profit. Thanks for pointing out my mistake!
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members
Location: New York, NY
Thanked: 13060 times
GMAT Score:790

by GMATGuruNY » Fri May 31, 2013 2:02 am
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?
A.7% loss
B.13% loss
C.7% profit
D.13% profit
E.15% profit
54 cameras yield a 20% profit, while 6 cameras suffer a 50% loss.
Average for all 60 cameras = (54*20 - 6*50)/60 = 780/60 = 13.

The correct answer is D.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members
Location: Vancouver, BC
Thanked: 5254 times
GMAT Score:770

by Brent@GMATPrepNow » Fri May 31, 2013 5:48 am
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?
A.7% loss
B.13% loss
C.7% profit
D.13% profit
E.15% profit
I think Mitch's solution using weighted averages is, by far, the best way to go here. However, if you didn't spot that approach, it's important to recognize that we really don't need to use the information about the cameras selling for $250 each. The question boils down to . . .

54 cameras were sold at a 20% markup, and cameras were sold at a 50% markdown. What was the approximate profit or loss as a percent of the dealer's initial cost for all 60 cameras?

So, we can assign an easy value of $100 to the initial cost per camera.
This means the 60 cameras cost $6000 to buy.

54 cameras were sold at a 20% markup and 6 cameras were sold at a 50% markdown.
So, 54 cameras were sold for $120, and 6 cameras were sold for $50.
(54)($120) + (6)($50) = $6780
So, the cameras were sold for $6780

This represents a profit of $780

If the initial cost was $6000, we must determine the percentage equivalent to $780/$6000

$780/$6000 = 78/600 = 13/100 = 13%

Answer = D

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 25
Joined: Mon May 04, 2009 6:38 pmFollowed by: 2 members

by adt29 » Mon Jul 15, 2013 4:52 pm
I think Mitch's solution using weighted averages is, by far, the best way to go here.
Brent and Mitch,
A little slow here: how do you think of weights in this problem? Are the weights the percents (20% markup and then 50% loss)? if that's the case, then according to the weighted avg formula, the denominator should be a sum of the weights right? how do you know to divide by 60?

Thanks in advance for your help!
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members
Location: Vancouver, BC
Thanked: 5254 times
GMAT Score:770

by Brent@GMATPrepNow » Mon Jul 15, 2013 5:07 pm
adt29 wrote:
I think Mitch's solution using weighted averages is, by far, the best way to go here.
Brent and Mitch,
A little slow here: how do you think of weights in this problem? Are the weights the percents (20% markup and then 50% loss)? if that's the case, then according to the weighted avg formula, the denominator should be a sum of the weights right? how do you know to divide by 60?

Thanks in advance for your help!
Here's Mitch's solution:
Average for all 60 cameras = (54*20 - 6*50)/60 = 780/60 = 13

This is the same as:
Average for all 60 cameras = (54/60)20 + (6/60)(-50)
So, 54/60 of the inventory solve for a 20% profit
To this, we add the fact that 6/60 of the inventory solve for a 50% loss

I hope that helps.

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members
Location: New York, NY
Thanked: 13060 times
GMAT Score:790

by GMATGuruNY » Mon Jul 15, 2013 5:17 pm
We can simplify the arithmetic even further if we realize the following.
(54 sold)/(6 not sold) = (9 sold)/(1 not sold).

Thus, of every 10 cameras, 9 earn a 20% profit, while 1 suffers a 50% loss.
Thus, the average profit/loss for every 10 cameras = (9*20 - 1*50)/10 = 13.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1