A furniture dealer

[msbelasco]

This looks to be an easy one, but for some reason the answer I chose was wrong and I can't figure it out.

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup of 40% 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

[neelgandham]

Let the selling price of the desk be S
Then the selling price = S = $150 + (40/100)*S
(60/100)*S = $150
S = $250
Profit = S - $150 = $250 - $150 = $100

[Edit: Removed unnecessary variables. Thanks for pointing out - gmatter2012]

[gmatter2012]

This looks to be an easy one, but for some reason the answer I chose was wrong and I can't figure it out.

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup of 40% 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

SP = 150 + (40/100)SP

SP= 250
so he purchased at 150 and sold at 250 hence $100 profit . Hence E

[gmatter2012]

Let the purchase price of the desk be P
Let the selling price of the desk be S
Then the selling price = S = P + (40/100)*S
Purchasing price = P = S - (40/100)*S = (60/100)*S = $150
S = $250
Profit = (40/100)*S = $100

there is no need to assume P it already given as $150

[neelgandham]

Thanks for the post but it is just a habit (Assuming variables). I edited the post now.
Thanks again!

[GMATGuruNY]

This looks to be an easy one, but for some reason the answer I chose was wrong and I can't figure it out.

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup of 40% 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 solution that I posted here virtually guarantees that you'll choose the correct answer:

https://www.beatthegmat.com/percentag-pr ... 16485.html

[msbelasco]

Thank you