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
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%.
The correct answer is
D.
By plugging in our own values that satisfy all of the given conditions, the correct answer here can be determined MUCH more quickly.
Essentially, the problem above is no different from the following:
A photography dealer ordered x cameras to be sold for y dollars each, which represents a 20 percent markup over the dealer's initial cost for each camera. Of the cameras ordered, 1/10 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 cameras?
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