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

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A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 04 Dec 2007, 23:09
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C
D
E

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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
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Re: Gross Profit [#permalink] New post 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.
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 [#permalink] New post 05 Dec 2007, 00:04
C.

Car 1:20,000/1.25=4,000
Car 2: 20,000/.8=5000
4K-5K = -1K = C
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 [#permalink] New post 05 Dec 2007, 00:13
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.
  [#permalink] 05 Dec 2007, 00:13
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