Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 25 Aug 2016, 15:00

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Mr. X plans a profit of 10 percent on the selling price of

Author Message
Manager
Joined: 09 Feb 2003
Posts: 82
Followers: 1

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

Mr. X plans a profit of 10 percent on the selling price of [#permalink]

### Show Tags

28 Nov 2003, 12:11
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

This topic is locked. If you want to discuss this question please re-post it in the respective forum.

Mr. X plans a profit of 10 percent on the selling price of an article. If his expenses excluding the cost of the article are 15 percent of the sales, what should his rate of mark up on the cost be (answers are in percent)
20
25
30
33 1/3
35
Thanx
sarnia
Director
Joined: 13 Nov 2003
Posts: 964
Location: Florida
Followers: 1

Kudos [?]: 92 [0], given: 0

### Show Tags

28 Nov 2003, 13:30
30%
eq. will be:
Profit = s.p. - c.p. - expenses
10%c.p. = s.p. - c.p. - 15%s.p.
.1c.p. = .85s.p - c.p.
s.p. = 1.294 c.p.

or, around 30% over cost price
Manager
Joined: 09 Feb 2003
Posts: 82
Followers: 1

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

### Show Tags

28 Nov 2003, 14:09
well, the correct answer is 33 1/3.... and I 'm still lost:x
Can you explain how to calculate the mark up
Director
Joined: 13 Nov 2003
Posts: 964
Location: Florida
Followers: 1

Kudos [?]: 92 [0], given: 0

### Show Tags

28 Nov 2003, 14:24
wow...m doin too many mistakes

you are right, ans should be 33.333333333%

profit should be 10% of sp...I used CP. my bad.

eq. will be:
Profit = s.p. - c.p. - expenses
10%s.p. = s.p. - c.p. - 15%s.p.
.1s.p. = .85s.p - c.p.
c.p. = .75s.p
s.p. = 4/3 of cp.

means, 1.333333 times c.p. or 33.33% over CP.
Director
Joined: 14 Oct 2003
Posts: 587
Location: On Vacation at My Crawford, Texas Ranch
Followers: 1

Kudos [?]: 40 [0], given: 0

### Show Tags

28 Nov 2003, 22:51
it's friday - i feel the same way - we should be out this day of the week! need to relax the brain.
SVP
Joined: 30 Oct 2003
Posts: 1793
Location: NewJersey USA
Followers: 5

Kudos [?]: 81 [0], given: 0

### Show Tags

13 Jan 2004, 22:22
what is the meaning of this
what should his rate of mark up on the cost be
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 36

Kudos [?]: 379 [0], given: 0

### Show Tags

13 Jan 2004, 22:34
How much ( in % ) should the cost be increased by to get the intended profit figure.

I just picked numbers and it seems so much easier.

Let 100$be the sales price You want to be left with a profit of 10$
The problem also states that expenses are 15% of sales price = 15$Therefore, the rest, 100$ - 10$- 15$ = 75$which must be the cost of the product. To find the markup, --> 25$ / 75\$ = 33.3%
_________________

Best Regards,

Paul

SVP
Joined: 30 Oct 2003
Posts: 1793
Location: NewJersey USA
Followers: 5

Kudos [?]: 81 [0], given: 0

### Show Tags

13 Jan 2004, 22:48
Hi Paul,

I did this

C + E + P = S
E = 0.15S P = 0.1S
C = 0.75S

So S = 4/3C = 1.3333C

If the original cost is C the new cost = 1.3333C
This how you say that the cost is increased by 33.3%

cost should be markedup as 0.75 S to achieve the desired profit.
Why did you divide 25 by 75.

Sorry to bother you. I still dont get it.
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 36

Kudos [?]: 379 [0], given: 0

### Show Tags

13 Jan 2004, 23:26
What you found was S = 4/3*C and you just substract C and you find the markup. It is a good way to solve the problem algebraically.
What I did was (S - C) / C which is another formula for finding the markup. In this case, (E + P) / C is also a valid formula to find the markup because (S - C) = (E + P) according to the very formula that you wrote. The two formulas I have really mean what is the percentage increase over cost, thus markup over cost.

E = 0.15S --- P = 0.1S --- C = .75S
Then: (E + P) / C = (0.15S + 0.1S) / .75S which again gives you the markup = 33.3%
I think it's about knowing that there are different ways of deriving markup ( besides algebraically ). Dunno if it helps.
_________________

Best Regards,

Paul

SVP
Joined: 30 Oct 2003
Posts: 1793
Location: NewJersey USA
Followers: 5

Kudos [?]: 81 [0], given: 0

### Show Tags

13 Jan 2004, 23:55
Hi Paul

Perfect explaination. Thanks again.
Display posts from previous: Sort by