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profit problem

This topic has 1 expert reply and 2 member replies
profiler01 Newbie | Next Rank: 10 Posts Default Avatar
Joined
01 Dec 2006
Posted:
1 messages

profit problem

Post Fri Dec 01, 2006 5:21 pm
Hello. I'm totally confused with this problem. Need your help.

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?
* $40
* $60
* $80
* $90
* $100

The answer is $100 (!?) Twisted Evil

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GMAT/MBA Expert

Post Fri Sep 29, 2017 4:12 pm
Quote:
A furniture dealer purchased a desk for $150 and then set the selling price equal to purchasing price plus a markup that was 40% of selling price. If the dealer sold the desk at selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?

A. $40
B. $60
C. $80
D. $90
E. $100
Let S = the selling price

The dealer ... set the selling price equal to purchasing price ($150) plus a markup that was 40% of selling price.
So, the markup = 0.4S
In other words: S = 150 + 0.4S
Subtract 0.4S from both sides to get: 0.6S = 150
Solve: S = 250
In other words, the selling price was $250

What was the dealer's gross profit from the purchase and the sale of the desk?
The profit = $250 - $150 = $100 = E

Cheers,
Brent

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Post Fri Sep 29, 2017 2:13 pm
The purchase price (pp) = $150
The dealer then set the selling price (sp) as x = pp + 40% of sp ---------------------(1)
let's represent the selling price with 'x', we can rewrite (i) as
x = pp + 40% of sp
since pp = $150
x = 150 + (40/100) * (x)
x - 0.4x = 150
0.6x = 150
x = 150/0.6
x=250

Thus, the selling point is $250.
since we know that;
Gross profit = selling profit - cost price
Gross profit = $ (250-150)
=$100

The dealer's gross profit is $100.

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kulksnikhil Senior | Next Rank: 100 Posts Default Avatar
Joined
23 May 2006
Posted:
58 messages
Upvotes:
2
Post Sat Dec 02, 2006 4:16 am
profiler01 wrote:
Hello. I'm totally confused with this problem. Need your help.

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?
* $40
* $60
* $80
* $90
* $100

The answer is $100 (!?) Twisted Evil
Put in expression,

Let X be the Markup,

Putting in to expression,

150+X - 150 = (40/100)(150+X)

X = (40/100) (150 + X)

100X = 40*150 +40X
60X = 6000
X=100

So 150+100 -150 =100

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