Live GMAT classes with Target Test Prep start Nov 21 and Nov 22. First class free.

See classes
Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

Newsweek Readers’ Choice Awards 2026 winner: Target Test Prep, #1 Test Prep

Target Test Prep was voted #1 Best Test Prep in the 2026 Newsweek Readers’ Choice™ Awards.

★★★★★5.0563 reviews
GMATLiveTeachStarts Nov 22
Josh Braslow, Target Test Prep GMAT expert
LIVE ONLINE CLASSES

Get Ready for GMAT Test Day Faster with Live Online Classes

with Josh Braslow, 20+ years in test prep

Nov 22 · Josh Braslow
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes + 6 months of TTP OnDemand
  • Attend the first class for free
  • Every class is recorded, so you never fall behind
View classes & enroll
Limited seats availableTarget Test Prep
EALiveTeachOnDemandStart anytime
EXECUTIVE ASSESSMENT

Target Test Prep EA OnDemand

Self-paced EA prep. Study on your schedule.

EXECUTIVE ASSESSMENT

with

165+ EA score guarantee
$05-day trial no automatic billing
Schedule
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll Start free 5-day trial
Limited cohort · enrollment openTrial includes full course accessTarget Test Prep
GMATOnDemandStart anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 563 reviewsTarget Test Prep

Problem Solving

Expert replies
Post new topic Post Reply
Subscribe topic
Previous Topic Next Topic
Senior | Next Rank: 100 Posts
Posts: 98
Joined: Sat May 31, 2014 8:29 pmFollowed by: 2 members
Thanked: 1 times
by RiyaR » Sun Sep 14, 2014 8:08 pm
A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?
(A) $0
(B) $3
(C) $4
(D) $12
(E) $15
Top
Join the discussion
Source: — Problem Solving |
User avatar
Legendary Member
Posts: 1100
Joined: Sat May 10, 2014 11:34 pmFollowed by: 24 members
Location: New Delhi, India
Thanked: 205 times

by GMATinsight » Sun Sep 14, 2014 8:43 pm
RiyaR wrote:A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?
(A) $0
(B) $3
(C) $4
(D) $12
(E) $15
Purchase price + 25% selling price= 100% selling price
60+ 25% SP= 100% SP
60= 75% SP

So 100 % SP =80

now 20 % sale means 20 % of 80 = 16
so he sold the jacket at 80-16 = 64 $
total profit = 64-60 = 4 $

Answer: Option C
"GMATinsight"Bhoopendra Singh & Sushma Jha
Most Comprehensive and Affordable Video Course 2000+ CONCEPT Videos and Video Solutions
Whatsapp/Mobile: +91-9999687183 l [email protected]
Contact for One-on-One FREE ONLINE DEMO Class Call/e-mail
Most Efficient and affordable One-On-One Private tutoring fee - US$40-50 per hour
Top
Join the discussion

GMAT/MBA Expert

User avatar
Elite Legendary Member
Posts: 10391
Joined: Sun Jun 23, 2013 6:38 pmFollowed by: 511 members
Location: Palo Alto, CA
Thanked: 2867 times
GMAT Score:800

by [email protected] » Sun Sep 14, 2014 10:16 pm
Hi RiyaR,

This question is essentially just a "math" question. How you set up the math (and work through the steps) is up to you though (you can use fractions, decimals or percents):

Purchase price = $60
Selling price = $60 + 25% of the Final Price
Final Price = X

$60 + .25X = X
$60 = .75X
$60 = (3/4)(X)

Now, multiply both sides by 4/3
$60(4/3) = (4/3)(3/4)X
$240/3 = (12/12)X
$80 = X

During the sale, the selling price was discounted by 20%

$80 - 20%($80) = Final Selling Price
$80 - 1/5($80) =
$80 - $16 =
$64

The Gross Profit = Final Price - Purchase Price
$64 - $60 = $4

Final Answer: C

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
Image
Top
Join the discussion