The marked price of a laptop is 40% higher than the cost

The market price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the market price, what is the profit percent after selling the laptop?

A. 6%
B. 12%
C. 18%
D. 20%
E. Cannot be determined

The OA is B.

Please, can anyone explain this PS question? I tried to solve it but I can't get the correct answer. I need help. Thanks.

Quote

Shahrukh_mbabreakspace: Senior | Next Rank: 100 Posts; Posts: 32; Joined: Mon Jul 02, 2018 1:56 am; Followed by:2 members

by Shahrukh_mbabreakspace » Wed Jul 04, 2018 10:37 pm

Let CP be x
So, MP becomes 1.4x

Discount is 20%

So, Selling Price is 80% of Marked Price
=> SP= 0.8*1.4x= 1.12x

So, clearly profit is 1.12x-x/x*100= 12%

________________________________________

Shahrukh Moin Khan
QA Mentor at Breakspace
https://www.mbabreakspace.com
PGDM: IIM Calcutta
B.Tech IIT Roorkee

Quote

dvijay012: Newbie | Next Rank: 10 Posts; Posts: 1; Joined: Wed Jul 04, 2018 10:54 pm

by dvijay012 » Wed Jul 04, 2018 11:50 pm

B. 12%

Let the CP be 100, then marked price=140
SP = 140 - 20% of 140 = 140 - 28 = 112
Hence % profit=12

Quote

GMAT/MBA Expert

Scott@TargetTestPrep: GMAT Instructor; Posts: 7242; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

by Scott@TargetTestPrep » Sat Jul 07, 2018 5:31 pm

swerve wrote:The market price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the market price, what is the profit percent after selling the laptop?

A. 6%
B. 12%
C. 18%
D. 20%
E. Cannot be determined

We can let the cost price be c. Thus, the market price is 1.4c before the discount, and after the discount, the market price is 0.8 x 1.4c = 1.12c. We see that this is 12% more than the cost price, so the profit is 12%.

Answer: B

Scott Woodbury-Stewart
Founder and CEO
[email protected]

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

Quote

Post new topic Post Reply

• Page 1 of 1

5/5

5 Star (473 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review