Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 07 Jul 2015, 12:07

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A merchant makes a profit of 30% after offering a discount

Author Message
TAGS:
Manager
Joined: 14 Dec 2004
Posts: 117
Followers: 1

Kudos [?]: 12 [0], given: 0

A merchant makes a profit of 30% after offering a discount [#permalink]  25 Mar 2005, 11:54
A merchant makes a profit of 30% after offering a discount of 20% on his marked price. By what percentage did he mark his goods up before offering the discount?
50%
56%
26%
62.5%
25%
Senior Manager
Joined: 15 Mar 2005
Posts: 419
Location: Phoenix
Followers: 2

Kudos [?]: 13 [0], given: 0

Re: profit [#permalink]  25 Mar 2005, 12:52
cloaked_vessel wrote:
A merchant makes a profit of 30% after offering a discount of 20% on his marked price. By what percentage did he mark his goods up before offering the discount?
50%
56%
26%
62.5%
25%

If the Cost Price = 100, he finally sells it for 130.
Therefore, if the marked price is x, 80% of x is 130
=> x = 130/0.8 = 162.5

Thus initial marked up price = 62.5%
_________________

Who says elephants can't dance?

VP
Joined: 30 Sep 2004
Posts: 1488
Location: Germany
Followers: 4

Kudos [?]: 105 [0], given: 0

0,8p=1,3=>p=1,625=>62,5%
VP
Joined: 18 Nov 2004
Posts: 1441
Followers: 2

Kudos [?]: 22 [0], given: 0

Re: profit [#permalink]  25 Mar 2005, 12:57
cloaked_vessel wrote:
A merchant makes a profit of 30% after offering a discount of 20% on his marked price. By what percentage did he mark his goods up before offering the discount?
50%
56%
26%
62.5%
25%

"D"

let's say original price was 100.....and he marks it up by x%

so marked price now = 100+x

discount price = 100+x - (100+x)20/100 = 100+x - 20 - x/5 = 80 + 4x/5

selling price shud be 130

130 = 80 + 4x/5

50*5/4 = x

x = 12.5*5 = 62.5%
Manager
Joined: 12 Mar 2005
Posts: 65
Location: Milton Keynes UK
Followers: 2

Kudos [?]: 5 [0], given: 0

D.

Lets say Original price was CP =100
Net profit merchant made = 30%, therefore Selling price SP=130
The selling price SP is after the marked price MP was reduced by 20%, therefore SP is 80% of MP.

130(SP) -- 80
MP ? -- 100

MP = 100 * 130 / 80 = 162.5

MP - CP = 162.5 - 100 = 62.5
_________________

The ability to focus attention on important things is a defining characteristic of intelligence.
--by Robert J. Shiller

Similar topics Replies Last post
Similar
Topics:
8 A merchant sells an item at a 20% discount, but still makes 14 13 Sep 2007, 22:57
A merchant discounted the sale price of a coat and the sale 1 08 Nov 2008, 20:18
A merchant gets a 5% discount on each meter of fabric he 1 19 Apr 2008, 07:34
A merchant sells an item at a 20% discount, but still makes 1 21 Oct 2007, 12:59
Today, all the items in the card store are 30% discounted. 4 20 Feb 2006, 22:58
Display posts from previous: Sort by

# A merchant makes a profit of 30% after offering a discount

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.