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# A furniture dealer purchased a desk for $150 and then set  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Intern Joined: 15 Jul 2012 Posts: 15 Concentration: Finance, Leadership GMAT Date: 10-25-2012 GPA: 3 Followers: 1 Kudos [?]: 28 [1] , given: 6 A furniture dealer purchased a desk for$150 and then set [#permalink]  26 Jul 2012, 09:53
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Difficulty:

25% (medium)

Question Stats:

75% (01:35) correct 25% (00:47) wrong based on 119 sessions
A furniture dealer purchased a desk for $150 and then set the selling price equal to purchasing price plus a markup that was 40% of selling price. If the dealer sold the desk at selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk? A.$40
B. $60 C.$80
D. $90 E.$100
[Reveal] Spoiler: OA

_________________

get what u like or like what u get

Last edited by Bunuel on 26 Jul 2012, 22:26, edited 1 time in total.
Edited the question.
MBA Section Director
Joined: 19 Mar 2012
Posts: 2626
Location: India
GPA: 3.8
WE: Marketing (Energy and Utilities)
Followers: 946

Kudos [?]: 5361 [0], given: 1357

Re: Problem Solving [#permalink]  26 Jul 2012, 10:18
Expert's post
let my selling price be 100x
then according to the prompt
150+40x=100x
this means 100x=SP=250
So profit is 100
Option E is correct
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Manager
Joined: 22 Jun 2012
Posts: 53
GMAT 1: 730 Q49 V40
Followers: 2

Kudos [?]: 16 [0], given: 6

Re: Problem Solving [#permalink]  26 Jul 2012, 17:10
Here's how I did it mentally:
the markup is 40% of the total price, the cost of 150 is 60 percent of the cost
hence the markup is two thirds of 150 = 50*2 =100

That's probably more like a 600-700 question I think

Hope it helps
Manager
Joined: 28 Sep 2011
Posts: 70
Location: United States
GMAT 1: 520 Q34 V27
GMAT 2: 550 Q V
GMAT 3: 690 Q47 V38
GPA: 3.01
WE: Information Technology (Commercial Banking)
Followers: 1

Kudos [?]: 19 [0], given: 10

Re: A furniture dealer purchased a desk for $150 and then set [#permalink] 27 Jul 2012, 17:41 Selling Price = S S = 150 + .40S S = 250 Profit = 250 - 150 = 100 Re: A furniture dealer purchased a desk for$150 and then set   [#permalink] 27 Jul 2012, 17:41
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