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A furniture dealer purchased a desk for $150 and then set th [#permalink]
13 Oct 2008, 19:02

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Question Stats:

61% (02:04) correct
39% (00:50) wrong based on 308 sessions

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?

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..

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?

A furniture dealer purchased a desk for $150 and then set [#permalink]
26 Jul 2012, 09:53

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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.

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

Re: A furniture dealer purchased a desk for $150 and then set [#permalink]
11 Sep 2013, 06:57

Hello from the GMAT Club BumpBot!

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Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]
12 Sep 2013, 01:58

Expert's post

1

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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?

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

A furniture dealer purchased a desk for $150 and then set th [#permalink]
19 Oct 2014, 20:39

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Expert's post

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. _________________

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!

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. _________________

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