word problem from gmatprep

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smallsorrow: Master | Next Rank: 500 Posts; Posts: 109; Joined: Mon Sep 08, 2008 12:47 am

by smallsorrow » Sat Oct 11, 2008 9:19 am

A funiture dealer purchases a desk for 150$ and then set the selling price equal to the purchasing price plus a mark up that was 40% of the selling pric. If the dealer sold the desk at the selling price what was the amount of his gross profit?
A) 40$
B) 60$
C) 80$
D) 100$
E) 120$

OA follows

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Source: Beat The GMAT — Problem Solving | Sat Oct 11, 2008 9:19 am

cramya: Legendary Member; Posts: 2467; Joined: Thu Aug 28, 2008 6:14 pmFollowed by: 11 members; Thanked: 331 times

by cramya » Sat Oct 11, 2008 9:34 am

Let x be the sellling price

Since selling proce is equal to cost price or purchase price + 40% of the selling price(markup)

150 + .4x = x

150 = .6x
x = 250

Gross Profit = 250 - 150 = 100
D)

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