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 →

Profit and Loss

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Master | Next Rank: 500 Posts
Posts: 176
Joined: Sun Feb 21, 2010 6:00 am
Thanked: 2 times
GMAT Score:710
by Pdgmat2010 » Mon Aug 16, 2010 8:45 pm
By selling an article at 80% of its marked price, a merchant makes a loss of 12%. what will be the % profit made by the merchant if he sells the article at 95% of its marked price?

A. 5% profit
B. 1% loss
C.10% profit
D. 5.5% profit
E. 4.5% profit

OA after some discussion ( plz bear with me)

cheers,
pd
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
Master | Next Rank: 500 Posts
Posts: 161
Joined: Mon Apr 05, 2010 9:06 am
Location: Mumbai
Thanked: 37 times

by 4GMAT_Mumbai » Mon Aug 16, 2010 9:39 pm
Hi,

0.8 times MP = 0.88 CP (as he makes a 12 % loss)

So, CP = 0.8 * MP / 0.88

CP = 80 * MP / 88 = 10 * MP / 11

So, MP = CP * 11 / 10

0.95 MP = 0.95 times (11 times CP / 10)

= 95 * 11 * CP / 1000

= 1045 CP / 1000

Current SP = 1.045 CP

Hence, P% = 4.5%.

Hope this helps.
Naveenan Ramachandran
4GMAT, Dadar(W) & Ghatkopar(W), Mumbai
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 1179
Joined: Sun Apr 11, 2010 9:07 pmFollowed by: 88 members
Location: Milpitas, CA
Thanked: 447 times

by Rahul@gurome » Tue Aug 17, 2010 5:51 pm
Pdgmat2010 wrote:By selling an article at 80% of its marked price, a merchant makes a loss of 12%. what will be the % profit made by the merchant if he sells the article at 95% of its marked price?

A. 5% profit
B. 1% loss
C.10% profit
D. 5.5% profit
E. 4.5% profit

cheers,
pd
Let the selling price (S.P) be X and cost price (C.P) be Y.
Selling price = 80% of its marked price = 0.8 of X = 0.8X
Loss% = [(C.P - S.P)/C.P]*100
12 = [(Y - 0.8X)/Y]*100 or 12Y = 100Y - 80X or 80X = 88Y or X = 1.1Y

New S.P = 95% of X = 0.95X
Profit% = [(S.P - C.P)/C.P]*100 = [(0.95X - Y)/Y]*100 = [(0.95*1.1Y - Y)/Y]*100 = 0.045*100 = 4.5
So, Profit% = 4.5%

The correct answer is (E).
Rahul Lakhani
Quant Expert
Gurome, Inc.
https://www.GuroMe.com
On MBA sabbatical (at ISB) for 2011-12 - will stay active as time permits
1-800-566-4043 (USA)
+91-99201 32411 (India)
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1