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# A furniture dealer purchased a desk for $150 and then set th  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Intern Joined: 12 Jul 2006 Posts: 8 Followers: 0 Kudos [?]: 10 [3] , given: 0 A furniture dealer purchased a desk for$150 and then set th [#permalink]  13 Oct 2008, 19:02
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A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 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? A.$40
B. $60 C.$80
D. $90 E.$100
[Reveal] Spoiler: OA

Last edited by Bunuel on 12 Sep 2013, 01:54, edited 1 time in total.
Renamed the topic, edited the question and added the OA.
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Re: Simple but still having trouble :( [#permalink]  13 Oct 2008, 19:09
I am not sure but i tried in following way:

150+ 40 =190 is divistible by 60 ..no..
150+ 60 =210 is divistible by 60 ..no..
150+ 80 =230 is divistible by 60 ..no..
150+ 90 =240 is divistible by 60 ..YES..
150+ 100 =250 is divistible by 60 ..no..

why division by 60? (10-40 =60%)

what is OA?

Thanks
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Re: Simple but still having trouble :( [#permalink]  13 Oct 2008, 19:50
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udribat wrote:
A furniture dealer purchased a desk for $150 and then set the selling price to the purchase price plus markup that was 40 percent 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? 1)$40
2) $60 3)$80
4) $90 5)$100

(E)

Purchase price = 150
Selling price = x

150 + 0.4*x = x
0.6*x = 150
x = 250

Profit = 250 - 150 = 100
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Re: Simple but still having trouble :( [#permalink]  01 May 2011, 00:55
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A furniture dealer purchased a desk for $150 and then set [#permalink] 26 Jul 2012, 09:53 1 This post received KUDOS 2 This post was BOOKMARKED 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 _________________ 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: 3199 Location: India GPA: 3.8 WE: Marketing (Energy and Utilities) Followers: 1184 Kudos [?]: 8012 [0], given: 1816 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 _________________ Manager Joined: 22 Jun 2012 Posts: 53 GMAT 1: 730 Q49 V40 Followers: 2 Kudos [?]: 18 [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 [?]: 22 [0], given: 10 Re: A furniture dealer purchased a desk for$150 and then set [#permalink]  27 Jul 2012, 17:41
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Selling Price = S

S = 150 + .40S

S = 250

Profit = 250 - 150 = 100
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Re: A furniture dealer purchased a desk for $150 and then set [#permalink] 11 Sep 2013, 06:57 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Math Expert Joined: 02 Sep 2009 Posts: 31297 Followers: 5358 Kudos [?]: 62414 [0], given: 9455 Re: A furniture dealer purchased a desk for$150 and then set th [#permalink]  12 Sep 2013, 01:58
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udribat wrote:
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 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? A.$40
B. $60 C.$80
D. $90 E.$100

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Re: A furniture dealer purchased a desk for $150 and then set th [#permalink] 19 Oct 2014, 14:57 hi all. I love math but hate GMAT math. Anyway, I'm getting confused with the terminology in this question. If the markup is 40% is that not the same thing as the profit? ie. isn't the markup the difference between the selling price and the cost? I might be missing something basic here. With this thinking, I just had selling price = to 140% of cost and got the answer wrong. I've seen how people solve it but I just don't understand the business or visual part of it.... HELP! PS - Why am I asking these types of questions 2 weeks before my exam Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6234 Location: Pune, India Followers: 1678 Kudos [?]: 9638 [2] , given: 197 A furniture dealer purchased a desk for$150 and then set th [#permalink]  19 Oct 2014, 20:39
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angelfire213 wrote:
hi all.

I love math but hate GMAT math.
Anyway, I'm getting confused with the terminology in this question. If the markup is 40% is that not the same thing as the profit? ie. isn't the markup the difference between the selling price and the cost?

I might be missing something basic here. With this thinking, I just had selling price = to 140% of cost and got the answer wrong. I've seen how people solve it but I just don't understand the business or visual part of it.... HELP!

PS - Why am I asking these types of questions 2 weeks before my exam

No, mark up is the difference between cost price and list price (or tag price or marked price). The list price may be different from selling price if the store offers a discount.

Look at it from the store's perspective. It buys a shirt at $100 and marks it up by 50% i.e. writes$150 as the list price on the shirt. The shirt doesn't sell for a month after which the store has a sale of 10% on everything. Someone buys the shirt during the sale at this 10% discount i.e. 150 - 10% of 150 = $135. So the selling price of the shirt is$135. So here, mark up was 50% but profit was 35%.

Anyway, in this question, there is no discount but the mark up is given as 40% of the selling price. So it is not 40% of $150 but instead, 40% of Selling price which is obtained by adding mark up to$150.

So if selling price is S,
150 + 40% of S = S
S = 250

Profit = 100 which is calculated on cost price in % terms. So 100/150 * 100 = 66.67% is profit.
Note that usually mark up is also calculated on cost price and hence mark up percentage would be 100/150 = 66.7% - i.e. same as profit% since there is no discount in this case. This question just gives you mark up on selling price and hence you need to do suitable modifications.
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Joined: 09 Jan 2014 Posts: 6 Followers: 0 Kudos [?]: 0 [0], given: 12 Re: A furniture dealer purchased a desk for$150 and then set th [#permalink]  21 Mar 2015, 17:57
VeritasPrepKarishma wrote:
angelfire213 wrote:
hi all.

I love math but hate GMAT math.
Anyway, I'm getting confused with the terminology in this question. If the markup is 40% is that not the same thing as the profit? ie. isn't the markup the difference between the selling price and the cost?

I might be missing something basic here. With this thinking, I just had selling price = to 140% of cost and got the answer wrong. I've seen how people solve it but I just don't understand the business or visual part of it.... HELP!

PS - Why am I asking these types of questions 2 weeks before my exam

No, mark up is the difference between cost price and list price (or tag price or marked price). The list price may be different from selling price if the store offers a discount.

Look at it from the store's perspective. It buys a shirt at $100 and marks it up by 50% i.e. writes$150 as the list price on the shirt. The shirt doesn't sell for a month after which the store has a sale of 10% on everything. Someone buys the shirt during the sale at this 10% discount i.e. 150 - 10% of 150 = $135. So the selling price of the shirt is$135. So here, mark up was 50% but profit was 35%.

Anyway, in this question, there is no discount but the mark up is given as 40% of the selling price. So it is not 40% of $150 but instead, 40% of Selling price which is obtained by adding mark up to$150.

So if selling price is S,
150 + 40% of S = S
S = 250

Profit = 100 which is calculated on cost price in % terms. So 100/150 * 100 = 66.67% is profit.
Note that usually mark up is also calculated on cost price and hence mark up percentage would be 100/150 = 66.7% - i.e. same as profit% since there is no discount in this case. This question just gives you mark up on selling price and hence you need to do suitable modifications.

wow, thanks for the explanation on the list price bit. i guess that was the missing link, i too was having a hard time trying to understand why there's a gap in the understanding. the list price part fill in the void nicely!
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Re: A furniture dealer purchased a desk for $150 and then set [#permalink] 14 Jul 2015, 10:33 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Manager Joined: 28 Jun 2015 Posts: 139 Concentration: Finance, Economics GPA: 3.5 Followers: 0 Kudos [?]: 47 [0], given: 19 Re: A furniture dealer purchased a desk for$150 and then set th [#permalink]  14 Jul 2015, 17:35
CP = $150. SP =$150 + 40%(SP)

So, (0.6) (SP) = $150 SP =$150/0.6 = $250. So, GP = SP-CP =$250-$150 =$100. Ans (E).
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Re: A furniture dealer purchased a desk for $150 and then set th [#permalink] 27 Nov 2015, 08:25 Purchase price =$150
Selling Price = SP

SP = 150 + 0.4SP
0.6SP = 150
SP = 250

GP = 250-150

GP = $100 Answer: E Senior Manager Joined: 11 Jun 2011 Posts: 376 Location: India WE: Corporate Finance (Commercial Banking) Followers: 4 Kudos [?]: 71 [0], given: 87 Re: A furniture dealer purchased a desk for$150 and then set th [#permalink]  28 Nov 2015, 11:45
I am posting a different approach and find it very convenient to reach the correct answer quickly.

For such problems I take Selling Price as 100 and calculate backqards to find Profit and Cost Price
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Re: A furniture dealer purchased a desk for $150 and then set th [#permalink] 30 Nov 2015, 08:43 Abhishek009, Can you repost the image? I am getting the red x. Thanks! Senior Manager Joined: 11 Jun 2011 Posts: 376 Location: India WE: Corporate Finance (Commercial Banking) Followers: 4 Kudos [?]: 71 [0], given: 87 Re: A furniture dealer purchased a desk for$150 and then set th [#permalink]  30 Nov 2015, 09:01
Dondarrion wrote:
Abhishek009,

Can you repost the image? I am getting the red x.

Thanks!

Here you go sir -

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Re: A furniture dealer purchased a desk for $150 and then set th [#permalink] 30 Nov 2015, 09:07 Expert's post Abhishek009 wrote: Dondarrion wrote: Abhishek009, Can you repost the image? I am getting the red x. Thanks! Here you go sir - Images you post are not visible at all. _________________ Re: A furniture dealer purchased a desk for$150 and then set th   [#permalink] 30 Nov 2015, 09:07

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