• Get 300+ Practice Questions

Available with Beat the GMAT members only code

• Free Practice Test & Review
How would you score if you took the GMAT

Available with Beat the GMAT members only code

• 1 Hour Free
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• 5 Day FREE Trial
Study Smarter, Not Harder

Available with Beat the GMAT members only code

• Free Veritas GMAT Class
Experience Lesson 1 Live Free

Available with Beat the GMAT members only code

• Award-winning private GMAT tutoring
Register now and save up to $200 Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • Most awarded test prep in the world Now free for 30 days Available with Beat the GMAT members only code ## Quicker way tagged by: Brent@GMATPrepNow This topic has 4 expert replies and 0 member replies eitijan Master | Next Rank: 500 Posts Joined 30 Jan 2016 Posted: 157 messages Upvotes: 1 #### Quicker way Mon Apr 25, 2016 4:55 am A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent
markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the
dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?
(A) 7% loss
(B) 13% loss
(C) 7% profit
(D) 13% profit
(E) 15% profit

It took me a lot of time to solve this question involving all the calculations. Is there any quicker way to solve it?

OA D

### GMAT/MBA Expert

Brent@GMATPrepNow GMAT Instructor
Joined
08 Dec 2008
Posted:
11275 messages
Followed by:
1225 members
5254
GMAT Score:
770
Wed Aug 23, 2017 4:37 pm
eitijan wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras? (A) 7% loss (B) 13% loss (C) 7% profit (D) 13% profit (E) 15% profit It's important to recognize that we really don't need to use the information about the cameras selling for$250 each. The question boils down to . . .

54 cameras were sold at a 20% markup, and 6 cameras were (essentially) sold at a 50% markdown. What was the approximate profit or loss as a percent of the dealerâ€™s initial cost for all 60 cameras?

So, we can assign A NICE value of $100 to the initial cost per camera. This means the 60 cameras cost$6000 to buy.

54 cameras were sold at a 20% markup and 6 cameras were sold at a 50% markdown.
So, 54 cameras were sold for $120, and 6 cameras were sold for$50.
(54)($120) + (6)($50) = $6780 So, the cameras were sold for$6780

This represents a profit of $780 (eliminate A and B) If the initial cost was$6000, we must determine the percentage equivalent to $780/$6000

$780/$6000 = 78/600 = 13/100 = 13%

Cheers,
Brent

_________________
Brent Hanneson â€“ Founder of GMATPrepNow.com
Use our video course along with

Check out the online reviews of our course
Come see all of our free resources

GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMATâ€™s FREE 60-Day Study Guide and reach your target score in 2 months!

### GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
Joined
12 Sep 2012
Posted:
2640 messages
Followed by:
113 members
625
Target GMAT Score:
V51
GMAT Score:
780
Wed Apr 27, 2016 1:49 pm
Since the answers are in terms of percentages, just stick with percentages and ignore the actual cost.

Suppose cost per camera = c. Then the dealer's cost = 60 * c.

The gross is 54*.2c - 6*.5c => 7.8c. (We made 20% of c on 54 cameras, and lost 50% of c on 6 cameras.)

That leaves us with a Profit/Cost ratio of 7.8c / 60c, or 7.8/60, or 13%.

Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

### GMAT/MBA Expert

GMATGuruNY GMAT Instructor
Joined
25 May 2010
Posted:
13900 messages
Followed by:
1807 members
13060
GMAT Score:
790
Mon Apr 25, 2016 5:08 am
eitijan wrote:
A photography dealer ordered 60 Model X cameras to be sold for \$250 each, which represents a 20 percent
markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the
dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?
(A) 7% loss
(B) 13% loss
(C) 7% profit
(D) 13% profit
(E) 15% profit
54 cameras yield a 20% profit, while 6 cameras suffer a 50% loss.
Average for all 60 cameras = (54*20 - 6*50)/60 = 780/60 = 13.

_________________
Mitch Hunt
GMAT Private Tutor
GMATGuruNY@gmail.com
If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon.
Available for tutoring in NYC and long-distance.

Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.

### GMAT/MBA Expert

GMATGuruNY GMAT Instructor
Joined
25 May 2010
Posted:
13900 messages
Followed by:
1807 members
13060
GMAT Score:
790
Mon Apr 25, 2016 5:09 am
Alternate approach:

Since the question asks for a PERCENTAGE, ignore the numbers given.
Plug in values that satisfy the given conditions and make the math easy.
The fraction of cameras not sold = 6/60 = 1/10.

Let the number of cameras ordered = 10.
Let the cost per camera = 10.
Total cost = 10*10 = 100.

The number not sold = (1/10)10 = 1.
For this one camera, the refund received = .5(10) = 5.

The number of cameras sold = 9.
With a markup of 20%, the selling price = 12.
Total revenue = 9*12 = 108.

Refund + revenue = 5+108 = 113, a profit of 13%.

_________________
Mitch Hunt
GMAT Private Tutor
GMATGuruNY@gmail.com
If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon.
Available for tutoring in NYC and long-distance.

Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.

### Best Conversation Starters

1 lheiannie07 112 topics
2 Roland2rule 74 topics
3 ardz24 67 topics
4 LUANDATO 53 topics
5 swerve 47 topics
See More Top Beat The GMAT Members...

### Most Active Experts

1 GMATGuruNY

The Princeton Review Teacher

155 posts
2 Jeff@TargetTestPrep

Target Test Prep

106 posts
3 Rich.C@EMPOWERgma...

EMPOWERgmat

100 posts
4 Scott@TargetTestPrep

Target Test Prep

98 posts
5 EconomistGMATTutor

The Economist GMAT Tutor

89 posts
See More Top Beat The GMAT Experts