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

 It is currently 06 Feb 2016, 06:15

### 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 sells an item at a 20 percent discount, but still

Author Message
Manager
Joined: 25 Aug 2004
Posts: 169
Location: MONTREAL
Followers: 1

Kudos [?]: 15 [0], given: 0

A merchant sells an item at a 20 percent discount, but still [#permalink]  28 Jul 2005, 05:04
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

A merchant sells an item at a 20 percent discount, but still makes a gross profit of 20 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?

(A) 20 %

(B) 40 %

(C) 50 %

(D) 60 %

(E) 75 %
Director
Joined: 13 Nov 2003
Posts: 790
Location: BULGARIA
Followers: 1

Kudos [?]: 32 [0], given: 0

let p=price without dicount, c=costs then 0.8p=1,2c and c=0,8p/1,2 which yields 66% for c these are the costs then the gross profit is 34% then the gross profit is 34/66 of the costs or 50%
Senior Manager
Joined: 29 Jun 2005
Posts: 403
Followers: 2

Kudos [?]: 18 [0], given: 0

Yes it is ~50%.
In cases like this, I suggest to pick the numbers.
Suppose, the price of the item is 100$. After 20% discount it decreases to 80$, and still is the 120% of the cost. if 120% is 80$, than 100% is 66$.
Gross profit per item is 100-66=34.$The cost is 66$ -> Approx. 50%
Current Student
Joined: 28 Dec 2004
Posts: 3385
Location: New York City
Schools: Wharton'11 HBS'12
Followers: 14

Kudos [?]: 208 [0], given: 2

S=sales price
C=cost price

0.8S=1.2C

S=1.5C

s-c=0.5

(s-c)/c *100=50%
Senior Manager
Joined: 29 Nov 2004
Posts: 484
Location: Chicago
Followers: 1

Kudos [?]: 14 [0], given: 0

It is exactly 50%

Taking numbers is easy

Should have sold for 100

Sold for 80

20% profit at 80\$ for orig cost is 80/1.2 = 200/3

_________________

Fear Mediocrity, Respect Ignorance

Senior Manager
Joined: 30 May 2005
Posts: 276
Followers: 1

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

Re: PS- Costs, Profits and Resale- Tough one. [#permalink]  28 Jul 2005, 14:03
mbassmbass04 wrote:
A merchant sells an item at a 20 percent discount, but still makes a gross profit of 20 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?

(A) 20 %

(B) 40 %

(C) 50 %

(D) 60 %

(E) 75 %

50%
i pick numbers cost 1OO
Hence the sell price given he made a gross profit of 20 percent of the cost.
is 120
Those 12O is a 20% discount
so 120 IS 80/1OO of X
hence without discount the price is 150
GROSS PROFIT IS 5O (150- 100)
COST 1OO
50/1OO= 50 %
Re: PS- Costs, Profits and Resale- Tough one.   [#permalink] 28 Jul 2005, 14:03
Display posts from previous: Sort by