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word problem ( sales and profit)

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by hpgmat » Tue Dec 08, 2009 7:07 pm
A furniture dealer purchased a desk for 150 dollars and then set the selling price equall to the purchase price plus a mark up that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealers gross profit from the purchase and sale of the desk.

40
60
80
90
100

I dont know what is wrong with my equation

selling price - purchase price = profit

(150 + 0.4 S) - 150 = 0.4 S ...> this equation does not get me anywhere
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Source: — Problem Solving |

by mehravikas » Tue Dec 08, 2009 7:18 pm
Is the answer 60?
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by aspirant1 » Tue Dec 08, 2009 8:32 pm
Purchase price = 150

New price(40% mark up) 150*(140/100) = 210

Gross profit = 210-150 = 60
...............................................................................................

selling price = purchase price * markup (i.e 140%- because 40% increase)

gross profit = Selling price - purchase price
.....................................................
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by thephoenix » Tue Dec 08, 2009 9:11 pm
hpgmat wrote:A furniture dealer purchased a desk for 150 dollars and then set the selling price equall to the purchase price plus a mark up that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealers gross profit from the purchase and sale of the desk.

40
60
80
90
100

I dont know what is wrong with my equation

selling price - purchase price = profit

(150 + 0.4 S) - 150 = 0.4 S ...> this equation does not get me anywhere
IMO ans is E

Purchase price=150
selling price=s
mark up=.4s
--->SP=150+.4s---->s=150+.4s--->.6s=150--->s=250

profit=SP-PP
---> 250-150=100

in your approach u need to do one more step
u got profit=.4s which is same as SP-PP--->.4s=s-150---> after solving this u will get s=250

pls confirm the OA
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by hpgmat » Tue Dec 08, 2009 9:14 pm
.,
Last edited by hpgmat on Tue Dec 08, 2009 9:21 pm, edited 1 time in total.
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by hpgmat » Tue Dec 08, 2009 9:17 pm
OA is E
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