An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
OA:B
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An electronics store purchased a CD player at a
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Jay@ManhattanReview
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Let the retail price be $x.NandishSS wrote:An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
OA:B
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We are given that the wholesale price = $60.
Also, the selling price = x - 40% of x = 60% of x = 0.6x
=> Profit percent on wholesale price = [(0.6x - 60)/60]*100% = 25%
=> (0.6x - 60) = (1/4)*60 => x = 125
=> Profit percent on retail price = [(0.6*125 - 60)/125]*100% = [(75 - 60)/125]*100% = [(15)/125]*100% = 12%.
OA: B
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Hi NandishSS,
Since the answer choices in this question are relatively close together, you have to be careful about the math 'work' that you do - and make sure that you label all of your work so that you don't get lost in all of the details in this prompt...
We're told that a CD player had a wholesale price of $60 and that it was sold at 40% off the RETAIL PRICE...
Retail Price = X
Wholesale Price = 60
Actual Sell Price = X - .4X = .6X
The store made a 25% profit on the WHOLESALE price, so...
Actual Sell Price = 60 + .25(60) = 60 + 15 = 75
.6X = 75
X = 75/.6 = 750/6 = 125
So....
Retail Price = $125
Wholesale Price = $60
Actual Sell Price = $75
Profit = $15
We're asked for the PROFIT as a percent of the RETAIL PRICE... (15)/(125) = 3/25 = 12%
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
Since the answer choices in this question are relatively close together, you have to be careful about the math 'work' that you do - and make sure that you label all of your work so that you don't get lost in all of the details in this prompt...
We're told that a CD player had a wholesale price of $60 and that it was sold at 40% off the RETAIL PRICE...
Retail Price = X
Wholesale Price = 60
Actual Sell Price = X - .4X = .6X
The store made a 25% profit on the WHOLESALE price, so...
Actual Sell Price = 60 + .25(60) = 60 + 15 = 75
.6X = 75
X = 75/.6 = 750/6 = 125
So....
Retail Price = $125
Wholesale Price = $60
Actual Sell Price = $75
Profit = $15
We're asked for the PROFIT as a percent of the RETAIL PRICE... (15)/(125) = 3/25 = 12%
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
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Since the answer choices are PERCENTS, the given price can be ignored.NandishSS wrote:An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
We can plug in ANY VALUES that satisfy the relationships in the problem.
The resulting percentage in each case will be the same.
Let R = the retail price, S = the selling price, and W = the wholesale price.
Let R = 100.
Since the CD player was sold at a 40% discount, S = 100 - (40% of 100) = 100-40 = 60.
Since the $60 selling price enables the store to make a 25% profit on the wholesale price, the $60 selling price is 125% of the wholesale price:
60 = (125/100)W
60 = (5/4)W
240 = 5W
W = 48.
Profit = (selling price) - (wholesale price) = 60-48 = 12.
Thus:
(profit)/(retail price) = 12/100 = 12%.
The correct answer is B.
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We are given that the cost of the CD player was 60 dollars and that the store sold it at a 40 percent discount off the original retail price. If we let x = the original retail price, then the store sold the CD player for 0.6x dollars. Since the store made a 25% profit on the wholesale price, it made 0.25(60) = 15 dollars of profit. Since revenue - cost = profit, we can create the following equation:NandishSS wrote:An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
0.6x - 60 = 0.25(60)
0.6x - 60 = 15
0.6x = 75
x = 125
So the profit as a percent of the original retail price is:
15/125 x 100 = 0.12 x 100 = 12 percent.
Answer: B
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