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# Gross Profit word problem

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Gross Profit word problem [#permalink]  31 Dec 2005, 13:17
Hi,

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from thepurchase and sale of the desk. I came up with$60 as the profit - $150 + 60 (40% of the price) - 150 but this was not the answer. Can someone please explain to me why this is wrong? Thanks for your help! VP Joined: 06 Jun 2004 Posts: 1059 Location: CA Followers: 2 Kudos [?]: 47 [0], given: 0 Re: Gross Profit word problem [#permalink] 31 Dec 2005, 13:20 twinkle9600 wrote: Hi, A furniture dealer purchased a desk for$150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from thepurchase and sale of the desk.

I came up with $60 as the profit -$150 + 60 (40% of the price) - 150 but this was not the answer. Can someone please explain to me why this is wrong?

Gross profit = SP - PP

SP = 150 + 0.40SP ==> SP = 250

250 - 150 = 100
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Thanks...I got it.
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