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

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A photography dealer ordered 60 Model X cameras to be sold [#permalink]  06 May 2012, 10:53
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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: 271 Location: Pakistan Concentration: Strategy, Marketing GMAT 1: 680 Q46 V37 GMAT 2: Q V Followers: 13 Kudos [?]: 458 [6] , given: 48 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] 23 Jun 2012, 07:31 6 This post received KUDOS 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. _________________ press +1 Kudos to appreciate posts Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 3111 Location: Pune, India Followers: 569 Kudos [?]: 2007 [4] , given: 92 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] 24 Jun 2012, 22:20 4 This post received KUDOS 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/
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Re: Of the cameras ordered, 6 were never sold and were returned [#permalink]  16 Nov 2012, 23:48
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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 actually, if one could visualize this problem properly, it could be solved in less than 30 secs without getting into any dirty calculations. Here is my 30 sec approach: Notice that it is actually a wighted ratio problem, where 9 parts earned 20% profit and 1 part earned 50% loss. (54 for profit, 6 for loss). Hence overall profit/loss = (9*20 -1*50) /(9+1) = 13 Ans D it is! _________________ GMAT Club team member Joined: 02 Sep 2009 Posts: 11534 Followers: 1795 Kudos [?]: 9566 [3] , given: 826 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] 06 May 2012, 11:07 3 This post received KUDOS 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. _________________ Director Joined: 02 Jul 2012 Posts: 758 Location: India Concentration: Strategy GMAT 1: 740 Q49 V42 GPA: 3.8 WE: Engineering (Energy and Utilities) Followers: 19 Kudos [?]: 258 [2] , given: 45 Re: Of the cameras ordered, 6 were never sold and were returned [#permalink] 16 Nov 2012, 23:15 2 This post received KUDOS 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.
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Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]  22 Jun 2012, 14:14
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?
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Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]  23 Jun 2012, 04:06
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. _________________ Intern Joined: 28 Feb 2012 Posts: 22 GMAT 1: 700 Q48 V39 WE: Information Technology (Computer Software) Followers: 0 Kudos [?]: 5 [0], given: 3 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] 24 Jun 2012, 02:06 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. Manager Joined: 02 Jun 2011 Posts: 160 Followers: 1 Kudos [?]: 4 [0], given: 11 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] 24 Jun 2012, 12:23 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 Manager Joined: 02 Jun 2011 Posts: 160 Followers: 1 Kudos [?]: 4 [0], given: 11 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] 24 Jun 2012, 12:26 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% SVP Joined: 01 Sep 2010 Posts: 1745 Followers: 55 Kudos [?]: 573 [0], given: 467 Of the cameras ordered, 6 were never sold and were returned [#permalink] 16 Nov 2012, 21:35 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
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Re: Of the cameras ordered, 6 were never sold and were returned [#permalink]  16 Nov 2012, 23:27
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) _________________ Free profile evaluation by top b-school alumni: email us at info@gyanone.com B-school application service http://www.gyanone.com/appone.html [b]Visit our blog: www.gyanone.com/blog GMAT Club team member Joined: 02 Sep 2009 Posts: 11534 Followers: 1795 Kudos [?]: 9566 [0], given: 826 Re: Of the cameras ordered, 6 were never sold and were returned [#permalink] 17 Nov 2012, 05:23 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

Merging similar topics.

Please search the forum before posting.
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Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]  17 Nov 2012, 15:39
true Bunuel sorry but sometimes the post are not properly tagged.

Next time, I'll do
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Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]  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.
Re: A photography dealer ordered 60 Model X cameras to be sold   [#permalink] 24 Nov 2012, 11:16
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