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

 It is currently 22 May 2013, 06:29

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

Author Message
TAGS:
Intern
Joined: 26 Jul 2010
Posts: 24
Followers: 0

Kudos [?]: 2 [0], given: 8

A photography dealer ordered 60 Model X cameras to be sold [#permalink]  06 May 2012, 10:53
00:00

Question Stats:

38% (04:49) correct 61% (03:06) wrong based on 4 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 GMAT Club team member Joined: 02 Sep 2009 Posts: 11564 Followers: 1795 Kudos [?]: 9570 [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. _________________ 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] 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% 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? GMAT Club team member Joined: 02 Sep 2009 Posts: 11564 Followers: 1795 Kudos [?]: 9570 [0], given: 826 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% 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? 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.
_________________
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
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

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%
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 3111
Location: Pune, India
Followers: 569

Kudos [?]: 2008 [4] , given: 92

Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink]  24 Jun 2012, 22:20
4
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/ _________________ Karishma Veritas Prep | GMAT Instructor My Blog Save 10% on Veritas Prep GMAT Courses And Admissions Consulting Enroll now. Pay later. Take advantage of Veritas Prep's flexible payment plan options. Veritas Prep Reviews 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
_________________

KUDOS is the good manner to help the entire community.

Director
Joined: 02 Jul 2012
Posts: 759
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
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% Answer is D. 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. _________________ Kudos Please... If my post helped. Thanks To The Almighty - My GMAT Debrief My Own CR Question 1|My Own CR Question 2|My Own DS Question 1|My Own DS Question 2| My Own PS Question 1 Director Status: Joined: 24 Jul 2011 Posts: 504 GMAT 1: 780 Q51 V48 GRE 1: 1540 Q800 V740 Followers: 37 Kudos [?]: 160 [0], given: 9 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

Director
Status: Disappointed devil..
Joined: 15 Sep 2012
Posts: 592
Location: India
Concentration: Strategy, General Management
WE: Information Technology (Computer Software)
Followers: 20

Kudos [?]: 224 [4] , given: 23

Re: Of the cameras ordered, 6 were never sold and were returned [#permalink]  16 Nov 2012, 23:48
4
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 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: 11564 Followers: 1795 Kudos [?]: 9570 [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.
_________________
SVP
Joined: 01 Sep 2010
Posts: 1745
Followers: 55

Kudos [?]: 573 [0], given: 467

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
_________________

KUDOS is the good manner to help the entire community.

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]  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
Similar topics Replies Last post
Similar
Topics:
The number of digital camera sold is twice the number of 1 08 Sep 2004, 06:54
According to a car dealer's report, 1/3 of the cars sold 2 17 Oct 2006, 14:38
The price of a model M camera is \$209 and the price of a 3 16 Nov 2007, 12:15
1 model A sold 3000 units and accounted for .6 of sales. model 3 23 Dec 2007, 04:22
3 How many of the 60 cars sold last month by a certain dealer 5 14 Dec 2012, 07:34
Display posts from previous: Sort by