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A retailer purchases shirts from a wholesaler and then sells the shirt

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Bunuel
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A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   23 Mar 2015, 06:41
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A retailer purchases shirts from a wholesaler and then sells the shirts in her store at a retail price that is 80 percent greater than the wholesale price. If the retailer decreases the retail price by 30 percent this will have the same effect as increasing the wholesale price by what percent?

A. 26
B. 37.5
C. 42
D. 44
E. 50
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A
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GSBae
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   Updated on: 25 Dec 2016, 09:54
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Bunuel wrote:
A retailer purchases shirts from a wholesaler and then sells the shirts in her store at a retail price that is 80 percent greater than the wholesale price. If the retailer decreases the retail price by 30 percent this will have the same effect as increasing the wholesale price by what percent?

A. 26
B. 37.5
C. 42
D. 44
E. 50

Kudos for a correct solution.


Let W be the wholesale price.

Then her final price is W*(1.8)(.7) = W * \(\frac{9}{5}*\frac{7}{10}\) = W\(*\frac{63}{50}\) = W \(*\frac{126}{100}\).

Therefore, the total increase is 26%.

Also, you could note that 7*8 ends in a 6, so your only option is A - you don't even have to do the math.

Answer: A

Originally posted by GSBae on 23 Mar 2015, 07:42.
Last edited by GSBae on 25 Dec 2016, 09:54, edited 2 times in total.
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   23 Mar 2015, 08:03
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Bunuel wrote:
A retailer purchases shirts from a wholesaler and then sells the shirts in her store at a retail price that is 80 percent greater than the wholesale price. If the retailer decreases the retail price by 30 percent this will have the same effect as increasing the wholesale price by what percent?

A. 26
B. 37.5
C. 42
D. 44
E. 50

Kudos for a correct solution.


X*1.8*0.7=1.26*X
26%
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   23 Mar 2015, 08:19
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Let the wholesale price be 100. 80% increase is 180, now the reduction is 30% which is 30/100* 180=54. So 180-54= 126.

The wholesale price was 100 and now it is 126. So, the answer is 126-100=26 (A)
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   23 Mar 2015, 08:53
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Increase of 80%: multiply by 1.8
Decrease of 30%: multiply by 0.7

\(1.8\cdot0.7=1.26=1+26%\)

The correct answer is A
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   24 Mar 2015, 02:59
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Answer = A = 26

Let wholesale price = 100

Retail selling price = 180

30% reduction in retail = 180-54 = 126

Effective rise in wholesale = 126-100 = 26%
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   24 Mar 2015, 06:39
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Bunuel wrote:
A retailer purchases shirts from a wholesaler and then sells the shirts in her store at a retail price that is 80 percent greater than the wholesale price. If the retailer decreases the retail price by 30 percent this will have the same effect as increasing the wholesale price by what percent?

A. 26
B. 37.5
C. 42
D. 44
E. 50

Kudos for a correct solution.



Answer: A= 26.

Assume Rs. 100 to be the price at which the retailer buys from wholesaler.
80% increase makes Retail price = 180.

Now 30% decrease -> (1-30/100) * 180 = 126.

Now compared to the wholesale price of 100, 26% increase is what will have the same effect as increasing the wholesale price.

Thank you.
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   24 Mar 2015, 10:19
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Say wholesale price 100, then retail price= 180(80% increase) and hence decreased price( 30% decrease) = 180*.70=126.
Hence need an increase of 26% (100+26=126) on wholesale price to have the same effect.
A is the answer.
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   30 Mar 2015, 03:15
Expert Reply
Bunuel wrote:
A retailer purchases shirts from a wholesaler and then sells the shirts in her store at a retail price that is 80 percent greater than the wholesale price. If the retailer decreases the retail price by 30 percent this will have the same effect as increasing the wholesale price by what percent?

A. 26
B. 37.5
C. 42
D. 44
E. 50

Kudos for a correct solution.


MAGOOSH OFFICIAL SOLUTION:
Attachment:
shirtprice_text.PNG
shirtprice_text.PNG [ 22.41 KiB | Viewed 14559 times ]
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   30 Mar 2015, 10:13
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WP : RP
100 : 180 is 80% inc
100 : .7*180 = 126 => 26% inc.
Ans A.
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   31 Mar 2015, 12:04
Expert Reply
Bunuel wrote:
A retailer purchases shirts from a wholesaler and then sells the shirts in her store at a retail price that is 80 percent greater than the wholesale price. If the retailer decreases the retail price by 30 percent this will have the same effect as increasing the wholesale price by what percent?

A. 26
B. 37.5
C. 42
D. 44
E. 50

Kudos for a correct solution.


Let wholesale price = 100.
So retail price = 180.

Now 30% decrease on the rate of 180 = 180 * 0.7
= 126.

This is 26% more than 100.

Hence option (A).

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Optimus Prep's GMAT On Demand course for only $299 covers all verbal and quant. concepts in detail. Visit the following link to get your 7 days free trial account: https://www.optimus-prep.com/gmat-on-demand-course
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   01 Apr 2015, 02:55
Picked a number.

100 * 1.8 = 180
180 * 0.7 = 126
126 - 100 = 26

26%, A.
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   07 Oct 2016, 22:41
Assume that the wholesale price be 100. 80% increase is 180, now the reduction is 30% which is 30/100* 180=54. So 180-54= 126.

The wholesale price was 100 and now it is 126. So, the answer is 126-100=26 (A)
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   02 May 2018, 10:28
Expert Reply
Bunuel wrote:
A retailer purchases shirts from a wholesaler and then sells the shirts in her store at a retail price that is 80 percent greater than the wholesale price. If the retailer decreases the retail price by 30 percent this will have the same effect as increasing the wholesale price by what percent?

A. 26
B. 37.5
C. 42
D. 44
E. 50


We can let w = wholesale price, r = original retail price and p = discounted retail price. We can create the equation:

r = 1.8w

After a 30% drop in price, we have:

p = 0.7r

p = 0.7(1.8w)

p = 1.26w


Thus we see that the discounted retail price is 26% more than the wholesale price.

Answer: A
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink] New post   20 Jan 2024, 00:55
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Re: A retailer purchases shirts from a wholesaler and then sells the shirt [#permalink]
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