While selling, a businessman allows 40% discount on the marked price and there
is a loss of 30%. If it is sold at the marked price, profit percent will be
(A) 10%
(B) 20%
(C)16 2/3 %
(D)16 1/3%
OA : C
any shortcut for such questions???
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profit and loss
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niketdoshi123
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Pick numberhim1985 wrote:While selling, a businessman allows 40% discount on the marked price and there
is a loss of 30%. If it is sold at the marked price, profit percent will be
(A) 10%
(B) 20%
(C)16 2/3 %
(D)16 1/3%
Let the marked price be $100
Price after 40% discount = $100 - 40%of $100 = $60
loss = (CP - SP)/CP
30/100 = (CP - 60)/CP
=> 3CP = 10CP - 600
=> CP = 600/7
So profit % on marked price = (100 - 600/7)/600/7 * 100
=> 1/6* 100
=>50/3% = 16 2/3%
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GMATGuruNY
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(60% of the marked price)/(70% of the cost) = (marked price)/x.him1985 wrote:While selling, a businessman allows 40% discount on the marked price and there
is a loss of 30%. If it is sold at the marked price, profit percent will be
(A) 10%
(B) 20%
(C)16 2/3 %
(D)16 1/3%
60/70 = 1/x
x = 7/6.
Since he makes 7/6 of the cost, the profit = 1/6, the equivalent of 16 2/3%.
The correct answer is C.
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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].
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Kobe_Kassidy
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When you read that you want to find the profit percent, immediately think of the ratio MP/CP, which is marked price (or sell price) divided by the cost price.him1985 wrote:While selling, a businessman allows 40% discount on the marked price and there
is a loss of 30%. If it is sold at the marked price, profit percent will be
(A) 10%
(B) 20%
(C)16 2/3 %
(D)16 1/3%
OA : C
any shortcut for such questions???
So when I read the question, I immediately formed the equation: .60 * MP = .70 * CP
Then, use basic algebra to get MP/CP = .70/.60
.70/.60 = 7/6, or 1 and 1/6. The 1/6 tells you the percent profit: 16 2/3
-KK
