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!
Gross profit = SP - PP
SP = 150 + 0.40SP ==> SP = 250
250 - 150 = 100
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