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# Loren bought a roll of cloth and sold it for a 5% profit. If

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Manager
Joined: 31 Dec 2003
Posts: 214
Location: US
Followers: 0

Kudos [?]: 7 [0], given: 0

Loren bought a roll of cloth and sold it for a 5% profit. If [#permalink]  01 Sep 2004, 10:28
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25. Loren bought a roll of cloth and sold it for a 5% profit. If Lorenâ€˜s profit was $45.5 total on the cloth, how much did it cost her to buy the cloth? (a)$455.
(b) $525.5. (c)$675.
(d) $810.5. (e)$864.5.

Thanks.
Manager
Joined: 27 Jul 2004
Posts: 85
Followers: 1

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

Answer should be $910. Anuramm, where are you getting such questions from (one after the other) ? Manager Joined: 02 Apr 2004 Posts: 224 Location: Utrecht Followers: 1 Kudos [?]: 13 [0], given: 0 [#permalink] 01 Sep 2004, 12:55 Cost + Profit = Selling price 100% + 5% = 105% 100% = 910 Cost + Profit = Selling price 95% + 5% = 100% 95% = 864,50 Is the 5% profit of the selling price or of the cost? Regards, Alex GMAT Club Legend Joined: 07 Jul 2004 Posts: 5078 Location: Singapore Followers: 22 Kudos [?]: 183 [0], given: 0 [#permalink] 01 Sep 2004, 18:57 let cost price be x. selling price is 1.05x. So 1.05x - x - 45.50 x =$910.

No choice available !! This is the second today I've haven't got a choice !! Help !!
VP
Joined: 13 Jun 2004
Posts: 1123
Location: London, UK
Schools: Tuck'08
Followers: 7

Kudos [?]: 30 [0], given: 0

The question is not very cclear.
Logically the answer would be 910, but in this problem it seems it is 864.5

First calculate the original price which is 910
Then imagine that you made 5% profit on this price, which means 910-45.5 = 864.5

but that is not correct, the question is not precise enough, when you see the answers and when you calculate it, we can presume that the answer is 864.5 which means that the 5% profit where in fact 5% margin on the selling price...
Manager
Joined: 31 Dec 2003
Posts: 214
Location: US
Followers: 0

Kudos [?]: 7 [0], given: 0

Even actually i got the CP as 910. But then if you take the profit on SP instead of on CP, then you get choice E. But i couldn't infer that you need to take the profit on SP from the question. So i wanted to know if i am missing out on anything.
amit_drummer,
These questions that i have been posting are from realtest questions. This site claims that they give us the real GMAT questions. So whenever i get struck with something i want to ensure that i am not missing out on something.
Thanks.
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