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retail price

by grandh01 » Wed Aug 29, 2012 2:45 pm
The original retail price of an appliance
was 60 percent more than its wholesale
cost. If the appliance was actually sold
for 20 percent less than the original
retail price, then it was sold for what
percent more than its wholesale cost?
(A) 20%
(B) 28%
(C) 36%
(D) 40%
(E) 42%

oa is B
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by alex.gellatly » Wed Aug 29, 2012 5:34 pm
grandh01 wrote:The original retail price of an appliance
was 60 percent more than its wholesale
cost. If the appliance was actually sold
for 20 percent less than the original
retail price, then it was sold for what
percent more than its wholesale cost?
(A) 20%
(B) 28%
(C) 36%
(D) 40%
(E) 42%
In my opinion, the easiest way to approach these types of problems is to set the Wholesale Cost (W) = 100.
So.., if W = 100 then Retail Price (R) = 160 (B/C it's 60% more then than w)
Now, it says that it was actually sold for 40% less than R, so .40 * 160 = 32; now 160-32=128 (This is very important that you DO NOT just subtract 40 from 160. It is's 40% less than 160, not of 100).

128 means that it is 28 greater than 100 (W). so 128-100=28; or Answer B

Let me know if this helps
A useful website I found that has every quant OG video explanation:

https://www.beatthegmat.com/useful-websi ... tml#475231
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by everything's eventual » Wed Aug 29, 2012 5:54 pm
When you see percentages in the question it is always easier to use solid numbers ( preferably 100...obviously). This gives you solid numbers to work with instead of variables.
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by das.ashmita » Wed Aug 29, 2012 9:46 pm
Another way of doing this:

Let,
Whole sale price : W
Retail Price : R
Actual Selling price: S

R = (1+60%)W = (1.60)W
S = (1-80%)S = (0.80)R = (0.80)(1.60)W = (1.28)W

Hence a profit of 28%

Hope it helps :)
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