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

 It is currently 27 May 2016, 21:31

### 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 photography dealer ordered 60 Model X cameras to be sold

Author Message
TAGS:

### Hide Tags

Intern
Joined: 26 Jul 2010
Posts: 24
Followers: 0

Kudos [?]: 91 [6] , given: 8

A photography dealer ordered 60 Model X cameras to be sold [#permalink]

### Show Tags

06 May 2012, 10:53
6
KUDOS
58
This post was
BOOKMARKED
00:00

Difficulty:

95% (hard)

Question Stats:

57% (03:57) correct 43% (03:20) wrong based on 1137 sessions

A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras? A. 7% loss B. 13% loss C. 7% profit D. 13% profit E. 15% profit [Reveal] Spoiler: OA Senior Manager Status: mba here i come! Joined: 07 Aug 2011 Posts: 270 Followers: 39 Kudos [?]: 935 [38] , given: 48 A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 23 Jun 2012, 07:31 38 This post received KUDOS 7 This post was BOOKMARKED 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. suppose total cameras = 10 and each costs$10
total profit = $2*9 -$5*1 = $13 or 13% (with$100 cost)
_________________

press +1 Kudos to appreciate posts

Last edited by MBAhereIcome on 25 Feb 2016, 08:28, edited 1 time in total.
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 6578
Location: Pune, India
Followers: 1791

Kudos [?]: 10774 [25] , given: 211

Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]

### Show Tags

24 Jun 2012, 22:20
25
KUDOS
Expert's post
15
This post was
BOOKMARKED
pgmat wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras? A. 7% loss B. 13% loss C. 7% profit D. 13% profit E. 15% profit Use weighted avgs for a quick solution: On 54 cameras, the dealer made a 20% profit and on 6 cameras, he made a 50% loss. Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1 Avg Profit/Loss = (.2*9 + (-.5)*1)/10 = 1.3/10 = .13 = 13% profit For more on weighted avgs, check: http://www.veritasprep.com/blog/2011/03 ... -averages/ _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

Veritas Prep Reviews

Director
Status: Done with formalities.. and back..
Joined: 15 Sep 2012
Posts: 647
Location: India
Concentration: Strategy, General Management
Schools: Olin - Wash U - Class of 2015
WE: Information Technology (Computer Software)
Followers: 43

Kudos [?]: 476 [15] , given: 23

Re: Of the cameras ordered, 6 were never sold and were returned [#permalink]

### Show Tags

16 Nov 2012, 23:48
15
KUDOS
5
This post was
BOOKMARKED
carcass wrote:

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Total cost 60*($250/1.2)=50*250; # of cameras sold is 60-6=54 total revenue is 54*250; # of cameras returned is 6 total refund 6*(250/1.2)*0.5; So, total income 54*250+ 6*(250/1.2)*0.5 The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13% Answer: D. _________________ Moderator Joined: 02 Jul 2012 Posts: 1230 Location: India Concentration: Strategy GMAT 1: 740 Q49 V42 GPA: 3.8 WE: Engineering (Energy and Utilities) Followers: 105 Kudos [?]: 1161 [5] , given: 116 Re: Of the cameras ordered, 6 were never sold and were returned [#permalink] ### Show Tags 16 Nov 2012, 23:15 5 This post received KUDOS 1 This post was BOOKMARKED carcass wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, whichrepresents a 20 percent markup over the dealer's initialcost for each camera.
Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?

(A) 7% loss

(B) 13% loss

(C) 7% profit

(D) 13% profit

(E) 15% profit

have fun. is not difficult to conceptualize but is difficult because if you are not organized and clear you are get in trouble.

I would not show the OA but the rules are stringent. either way try on your own

Cost to dealer for 60 cameras = $$\frac{250}{1.2}*60$$ = $12,500 Revenue for 54 cameras = 54*250 =$13,500

Revenue from 6 cameras = $$\frac{250}{2.4}*6$$ = $625 Total Revenue =$14,125

Profit percent = $$\frac{14125-12500}{12500}$$ = 13%

Otherwise, If one were short on time and I had to guess, One can eliminate A,B & C by looking at the problem itself and improve my chances of guessing the right answer to 50% between D & E.

Kudos Please... If my post helped.
_________________

Did you find this post helpful?... Please let me know through the Kudos button.

Thanks To The Almighty - My GMAT Debrief

GMAT Reading Comprehension: 7 Most Common Passage Types

Math Expert
Joined: 02 Sep 2009
Posts: 33052
Followers: 5767

Kudos [?]: 70667 [3] , given: 9856

Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]

### Show Tags

23 Jun 2012, 04:06
3
KUDOS
Expert's post
1
This post was
BOOKMARKED
kashishh wrote:
Bunuel wrote:
pgmat wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras? A. 7% loss B. 13% loss C. 7% profit D. 13% profit E. 15% profit Total cost 60*$250/1.2=50*250;

# of cameras sold is 60-6=54 total revenue is 54*250;
# of cameras returned is 6 total refund 6*(250/1.2)*0.5;
So, total income 54*250+ 6*(250/1.2)*0.5

The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13%

Dear Bunuel,
Ths is a doubt i face with %ages, in ths quest too.
could you pls tell where i m going wrong?
when 20% mark up for initial cost is given , how to calculate it?
250 - 20/100*250 or to take if 120 is 250 then how much is 100?
how have you arrived at 1.2?

If it's given that the selling price is $250 and the markup over the initial cost is 20%, then: {Cost}+0.2{Cost}=1.2*{Cost}={Selling price} --> 1.2*{Cost}=$250 --> {Cost}=$250/1.2. Hope it's clear. _________________ Manager Joined: 02 Jun 2011 Posts: 159 Followers: 1 Kudos [?]: 63 [3] , given: 11 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 24 Jun 2012, 12:23 3 This post received KUDOS MBAhereIcome wrote: 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. suppose total cameras = 10, out of which 9 gave 20% profit suppose 100 was the cost of each. total profit 100*10=1000 profit from 9 = 20*9 = 180 loss from 1 = 50*1 = 50 total profit = 180-50 = 130 so, 130 profit from a cost of 1000. that is 13% profit. hey ths is greatt ! i truly struggled for ths .. thnx for such easy way out. +1 for ths. thnx Math Expert Joined: 02 Sep 2009 Posts: 33052 Followers: 5767 Kudos [?]: 70667 [2] , given: 9856 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 27 May 2013, 12:19 2 This post received KUDOS Expert's post FTGNGU wrote: Bunuel wrote: pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Total cost 60*($250/1.2)=50*250; # of cameras sold is 60-6=54 total revenue is 54*250; # of cameras returned is 6 total refund 6*(250/1.2)*0.5; So, total income 54*250+ 6*(250/1.2)*0.5 The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13% Answer: D. this must be kind of awkward question but i got no option other than asking you. 20% markup over the dealer’s initial cost for each camera- I made a wrong assumption , but reducing 20%from 250 & got 200 as an initial cost for each. please explain that "Total cost 60*($250/1.2)=50*250;"

(Cost per unit) + 0.2*(Cost per unit) = $250 1.2*(Cost per unit) =$250
(Cost per unit) = $250/1.2 Total cost for 60 units = 60*(Cost per unit) = 60*($250/1.2) = 50*250.

Hope it's clear.
_________________
Intern
Joined: 28 Feb 2012
Posts: 22
GMAT 1: 700 Q48 V39
WE: Information Technology (Computer Software)
Followers: 0

Kudos [?]: 10 [1] , given: 3

Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]

### Show Tags

24 Jun 2012, 02:06
1
KUDOS
MBAhereIcome wrote:
54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit.

suppose total cameras = 10, out of which 9 gave 20% profit
suppose 100 was the cost of each. total profit 100*10=1000

profit from 9 = 20*9 = 180
loss from 1 = 50*1 = 50
total profit = 180-50 = 130

so, 130 profit from a cost of 1000. that is 13% profit.

Your method seems easy, but I kind of got lost with this - 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit.
Could you please explain, how you deduced this?

Thanks.
Director
Status:
Joined: 24 Jul 2011
Posts: 829
GMAT 1: 780 Q51 V48
GRE 1: 1540 Q800 V740
Followers: 104

Kudos [?]: 443 [1] , given: 15

Re: Of the cameras ordered, 6 were never sold and were returned [#permalink]

### Show Tags

16 Nov 2012, 23:27
1
KUDOS
60 cameras were ordered to be sold at a 20% markup for $250 each => Dealer's cost for each camera =$208
=> Cost of all 60 cameras = $60*208 6 cameras were not sold and returned for a refund of 50% of the dealer's cost => The amount the dealer got in returns = 50% of 6*208 =$624
The rest of the cameras (60-6 = 54 in number) were sold
=> Revenue made from selling the cameras = $54 * 250 For the 60 cameras, dealer's profit = 100* [54*(250-208) + (624-1248)]/[(60*200)] =100* (14100-12000)/12000 = ~13% (the error arises because 250/1.2 is not exactly 208 but 208.33) Option (D) _________________ GyanOne | Top MBA Rankings and MBA Admissions Blog Premium MBA Essay Review|Best MBA Interview Preparation|Exclusive GMAT coaching Get a FREE Detailed MBA Profile Evaluation | Call us now +91 98998 31738 Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6578 Location: Pune, India Followers: 1791 Kudos [?]: 10774 [1] , given: 211 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 24 Aug 2014, 21:54 1 This post received KUDOS Expert's post sagnik242 wrote: VeritasPrepKarishma wrote: pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Use weighted avgs for a quick solution:

On 54 cameras, the dealer made a 20% profit and on 6 cameras, he made a 50% loss. Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1

Avg Profit/Loss = (.2*9 + (-.5)*1)/10 = 1.3/10 = .13 = 13% profit

For more on weighted avgs, check: http://www.veritasprep.com/blog/2011/03 ... -averages/

why are we dividing by 10?

Weighted Average Formula:

Cavg = (C1*w1 + C2*w2)/(w1 + w2)

C1 and C2 represent the quantity which we want to average so they will be profit/loss here.
C1 = 20% = .2
C2 = -50% (loss) = -.5
The weights, given by w1 and w2, are the cost prices.
Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1
So w1 =9 and w2 = 1

Avg Profit/Loss = (.2*9 + (-.5)*1)/(9 + 1) = (.2*9 + (-.5)*1)/10

Get more details on this concept from the link given in my post above.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews e-GMAT Representative Joined: 04 Jan 2015 Posts: 338 Followers: 92 Kudos [?]: 710 [1] , given: 84 A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 22 Apr 2015, 05:13 1 This post received KUDOS Expert's post Andrewbpaa wrote: Suppose: what if I want to calculate the number of the total profit first. How can I get it? I tried to get it by "54^250/1.2. Is this is the correct way? Pls enlighten. Thanks in advance. Hi Andrewbpaa, For calculating the total net profit, you would need to know the cost price and the selling price of all the 60 cameras: On a selling price of$250, the dealer makes a profit of 20%. So, his cost price for 1 camera would be $$= \frac{250}{1.20}$$
His refund price for 6 cameras is 50% of his cost price i.e. $$0.5* \frac{250}{1.20}$$

I. Profit from selling 54 cameras at $250 each$$= 54 * ( 250 - \frac{ 250}{1.20})$$ II. Loss from refund of 6 cameras = $$6 *( \frac{250}{1.20} - \frac{ 250}{1.20} * 0.50)$$ $$= 6*( \frac{250}{1.20} * 0.50)$$ Adding I & II would give you the total net profit the dealer made on the 60 cameras. The net profit can then be divided by the total cost price of 60 cameras to arrive at the total profit% of the dealer. However, I would suggest you use weighted average method to solve the question. Points to Note In such questions, it pays to be careful about the concept of markup% and discount%. In this question, there was no discount offered, hence the markup price and selling price were the same i.e.$250. Had there been a discount of lets say 10%, the selling price would have been $$250* 0.9 =  225$$. The profit then would have been equal to $$225 - \frac{ 250}{1.20}$$

Please remember that the markup% is calculated on the cost price while the discount % is calculated on the markup price.

Given below are few questions on discount & markup for your practice:

if-the-original-price-of-an-item-in-a-retail-store-is-marked-163706.html?hilit=discount
a-pair-of-skis-originally-cost-160-after-discount-of-x-149918.html
a-jewelry-dealer-initially-offered-a-bracelet-for-sale-at-an-8215.html?hilit=discount%20&%20markup

Hope its clear!

Regards
Harsh
_________________
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 6578
Location: Pune, India
Followers: 1791

Kudos [?]: 10774 [1] , given: 211

Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]

### Show Tags

06 Sep 2015, 20:58
1
KUDOS
Expert's post
bablu1234 wrote:
A big question I have is, why does following method give different answer though I believe there is no flaw in my method of attempting this problem -

Purchase price per camera = 250/1.2 = 1250/6.

Total purchase price = 60 * 1250/6 = 12500$Got return money because of 6 cameras which were returned = 50% of 6 = [(6 * 250/1.2)/2] = 625$

Effective purchase price = 12500 - 625 = 11875$Total sale = 54 * 250 = 13500$.

Hence % profit = [(Total sale - effective purchase price) / (effective purchase price)] x 100

= [(13500 - 11875) / 11875] x 100

= (1625/11875) x 100

= 13.684 Ans.

Dealer paid total cost of 60 cameras and then I deducted 50% cost of 6 cameras from that instead of adding it as a revenue. So in this case, technically 54 cameras have been sold and 57 were bought.

Can anyone explain why can't I do that way?

TIA

You have assumed the situation to be a bit different from what it actually is.

You have assumed that he bought 54 cameras at 250/1.2 each and 6 cameras at 125/1.2 each.
Then he sold 54 cameras at 250 each and 6 cameras at 0.

While actually this is the situation:

He bought 60 cameras at 250/1.2 each.
He sold 54 at 250 each and sold the rest of the 6 at 125/1.2 each.

The difference (Revenue - Cost) in both cases will be the same but the cost price in the denominator will be different. So profit % obtained will be different. Please check Bunuel's solution on Page 1 to see the actual calculations of this method.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6578 Location: Pune, India Followers: 1791 Kudos [?]: 10774 [1] , given: 211 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 30 Dec 2015, 23:21 1 This post received KUDOS Expert's post sagnik242 wrote: VeritasPrepKarishma wrote: pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Use weighted avgs for a quick solution:

On 54 cameras, the dealer made a 20% profit and on 6 cameras, he made a 50% loss. Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1

Avg Profit/Loss = (.2*9 + (-.5)*1)/10 = 1.3/10 = .13 = 13% profit

For more on weighted avgs, check: http://www.veritasprep.com/blog/2011/03 ... -averages/

why are we dividing by 10?

The weights are 54 (20% profit on 54 cameras) and 6 (50% loss on 6 cameras).
This is a ratio of 54:6 = 9:1 (in lowest terms). It is the same thing whether you use 54 and 6 as weights or 9 and 1 but 9 and 1 simplify the calculations.

Avg = (A1 * w1 + A2 * w2)/(w1 + w2) = (A1 * 9 + A2 * 1)/(9 + 1) = (A1 * 9 + A2 * 1)/10
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6578 Location: Pune, India Followers: 1791 Kudos [?]: 10774 [1] , given: 211 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 01 Mar 2016, 23:48 1 This post received KUDOS Expert's post philipb wrote: Does this question bother anyone else in formatting terms? Perhaps I'm misinterpreting, but let me explain: "What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?" Profit = Revenue - Costs Thus, the question is looking for (Revenue - Cost) / Cost In number terms this would look like, [54*(250) + 6*(250)*(4/5)*(1/2) - 600*(250)*(4/5)]/[(60)*(250)*(4/5)]x100 ~~ 10.7% I'd appreciate any help in clearing up this misunderstanding! You are correct conceptually. The error lies here: "$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera."

Marked price is 250
This is a 20% markup on cost.

Cost * (1 + 20/100) = Marked price

Cost * (6/5) = Marked Price
Cost = (5/6) * 250

You have taken this to be (4/5)*250. Replace it by (5/6) and you should get the correct answer.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Total cost $60*250/1.2=50*250; # of cameras sold is 60-6=54 total revenue is 54*250; # of cameras returned is 6 total refund 6*(250/1.2)*0.5; So, total income 54*250+ 6*(250/1.2)*0.5 The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13% Answer: D. Dear Bunuel, Ths is a doubt i face with %ages, in ths quest too. could you pls tell where i m going wrong? when 20% mark up for initial cost is given , how to calculate it? 250 - 20/100*250 or to take if 120 is 250 then how much is 100? how have you arrived at 1.2? Manager Joined: 02 Jun 2011 Posts: 159 Followers: 1 Kudos [?]: 63 [0], given: 11 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 24 Jun 2012, 12:26 1 This post was BOOKMARKED gmatDeep wrote: MBAhereIcome wrote: 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. suppose total cameras = 10, out of which 9 gave 20% profit suppose 100 was the cost of each. total profit 100*10=1000 profit from 9 = 20*9 = 180 loss from 1 = 50*1 = 50 total profit = 180-50 = 130 so, 130 profit from a cost of 1000. that is 13% profit. Your method seems easy, but I kind of got lost with this - 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. Could you please explain, how you deduced this? Thanks. yess.. 54:6 = 9:1 mark up is of 20% = profit earned will be 20% Intern Joined: 16 Nov 2009 Posts: 7 Followers: 0 Kudos [?]: 0 [0], given: 0 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 24 Nov 2012, 11:16 Hi, For those using normal way to solve this problem, I think that we can avoid huge calculation by just replace Cost by letter C and put it in the final formula: Income: 54*1.2C + 6*0.5C Cost: 60*C Then percent =(Income-cost)/cost = (54*1.2C + 6*0.5C - 60*C)/60*C. We can see that we can eliminate C from the fraction --> percent = (54*1.2 + 6*0.5 - 60)/60 = (54*1.2 + 6*0.5)/60 - 1. Here, we can see clearly the weighted average part of the problem or we can simply calculate the fraction to reach the result. Manager Status: K... M. G... Joined: 22 Oct 2012 Posts: 51 Concentration: General Management, Leadership GMAT Date: 08-27-2013 GPA: 3.8 Followers: 0 Kudos [?]: 8 [0], given: 118 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 27 May 2013, 12:12 Bunuel wrote: pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Total cost 60*($250/1.2)=50*250; # of cameras sold is 60-6=54 total revenue is 54*250; # of cameras returned is 6 total refund 6*(250/1.2)*0.5; So, total income 54*250+ 6*(250/1.2)*0.5 The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13% Answer: D. this must be kind of awkward question but i got no option other than asking you. 20% markup over the dealer’s initial cost for each camera- I made a wrong assumption , but reducing 20%from 250 & got 200 as an initial cost for each. please explain that "Total cost 60*($250/1.2)=50*250;"
Re: A photography dealer ordered 60 Model X cameras to be sold   [#permalink] 27 May 2013, 12:12

Go to page    1   2   3    Next  [ 47 posts ]

Similar topics Replies Last post
Similar
Topics:
A car dealer sold x used cars and y new cars during May. If the number 2 24 Nov 2015, 11:06
5 In 1989 the price of a new model S car was x dollars. If the price of 3 11 Nov 2015, 00:40
13 A man sold 20 articles for \$60 and gained 20%. How many 10 28 Jul 2010, 09:20
45 A used car dealer sold one car at a profit of 25 percent of 13 23 Jul 2008, 22:15
25 For how many ordered pairs (x , y) that are solutions of the 8 24 May 2007, 06:07
Display posts from previous: Sort by