shopkeeper fixes

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sanju09: GMAT Instructor; Posts: 3650; Joined: Wed Jan 21, 2009 4:27 amFollowed by: 80 members; Location: India; Thanked: 267 times; GMAT Score:760

by sanju09 » Thu Apr 02, 2009 3:51 am

A shopkeeper fixes the marked price of a commodity 30 percent above its cost price. What percent of discount should he allow on the marked price so that he still gains 25 percent on selling it?
A. 5
B. 15/2
C. 50/3
D. 50/13
E. 25/13

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Source: Beat The GMAT — Problem Solving | Thu Apr 02, 2009 3:51 am

scoobydooby: Legendary Member; Posts: 1035; Joined: Wed Aug 27, 2008 10:56 pmFollowed by: 1 member; Thanked: 104 times

by scoobydooby » Thu Apr 02, 2009 4:00 am

let CP be 100, so MP=130. SP=125 (25% profit)
discount always calculated on MP
so discount %: 125-130/130*100=50/130

hence D

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vittalgmat: Legendary Member; Posts: 621; Joined: Wed Apr 09, 2008 7:13 pmFollowed by: 4 members; Thanked: 33 times

Re: shopkeeper fixes

by vittalgmat » Thu Apr 02, 2009 1:36 pm

sanju09 wrote:A shopkeeper fixes the marked price of a commodity 30 percent above its cost price. What percent of discount should he allow on the marked price so that he still gains 25 percent on selling it?
A. 5
B. 15/2
C. 50/3
D. 50/13
E. 25/13

Sanju
I think D should be 50/130.

coz (125-130)/130 *100 = 50/130.

can u pls check ?

thanks

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gmat740: MBA Student; Posts: 1194; Joined: Sat Aug 16, 2008 9:42 pmFollowed by: 17 members; Location: Paris, France; Thanked: 71 times; GMAT Score:710

by gmat740 » Thu Apr 02, 2009 5:00 pm

CP = x

MP = 1.3x

Let the Discount Be D %

Since profit has to be 25%

So Selling price SP = 1.25x

Discount offered = d% of 1.3x

Also SP after discount is (1.3x- 1.3x*d/100)

1.25x = (1.3x- 1.3x*d/100)

0.05x =( 1.3x)* d/100

d= 50/13

So answer is D

Always solve Questions by fundamental methods,break down the problem into its basic form because during the time of exam, you may forget the formulas.

Karan

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