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# A used car dealer sold one car at a profit of 25 percent of

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Intern
Joined: 18 Nov 2007
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A used car dealer sold one car at a profit of 25 percent of [#permalink]  04 Dec 2007, 23:09
00:00

Difficulty:

(N/A)

Question Stats:

100% (02:14) correct 0% (00:00) wrong based on 7 sessions
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A used car dealer sold one car at a profit of 25 percent of the dealer's purchase price for that car and sold another car at a loss of 20 percent of the dealer's purchase price for that car. If the dealer sold each car fo $20,000, what was the dealer's total profit or loss, in dollars, for the two transactions combined? A. 1000 PROFIT B. 2000 PROFIT C. 1000 LOSS D. 2000 LOSS E. 3334 LOSS CEO Joined: 29 Mar 2007 Posts: 2584 Followers: 17 Kudos [?]: 304 [0], given: 0 Re: Gross Profit [#permalink] 05 Dec 2007, 00:01 goodglory wrote: A used car dealer sold one car at a profit of 25 percent of the dealer's purchase price for that car and sold another car at a loss of 20 percent of the dealer's purchase price for that car. If the dealer sold each car fo$20,000, what was the dealer's total profit or loss, in dollars, for the two transactions combined?

A. 1000 PROFIT
B. 2000 PROFIT
C. 1000 LOSS
D. 2000 LOSS
E. 3334 LOSS

Profit=R-C

X @ 20000
Y @ 20000

X: .25C=20000-C 1.25C=20000 4/5*20000--> 16000=C So profit is 4000.

Y: -(.2C)=20000-C Remember this is going to be a loss.

.8C=20000 --> 10/8*20000 C=25000

So loss is 5000.

4000-5000=-1000

I get C.
Senior Manager
Joined: 09 Oct 2007
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C.

Car 1:20,000/1.25=4,000
Car 2: 20,000/.8=5000
4K-5K = -1K = C
Senior Manager
Joined: 09 Oct 2007
Posts: 467
Followers: 1

Kudos [?]: 29 [0], given: 1

goodglory, the base for this questions is understanding the relation between numbers and percentages:

From car 1, you know that he sold the car at 20,000 and earned a profit of 25%, which means that he sold the car at 125% of the purchase price. you can set this up as a ratio:

20,000/125 = x/100 and then you crossmultiply:
20,000(100) = 125x
20,00000/125 = x
16,000 = x

Note that this is the same as 20,000/1.25

You do the same for car 2, but the clue remains the same: understaing the relationship the amount and the percentage hold:
20,000/80 = x/100

Hope this helps a bit.
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