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

 It is currently 08 Oct 2015, 14:08

### 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

# The balance of a trader weighs 10% less than it should

Author Message
TAGS:
Manager
Joined: 16 Sep 2011
Posts: 182
Concentration: Strategy, Operations
Schools: ISB '15
GMAT 1: 720 Q48 V40
GPA: 3.18
WE: Supply Chain Management (Manufacturing)
Followers: 13

Kudos [?]: 46 [0], given: 34

The balance of a trader weighs 10% less than it should [#permalink]  29 Sep 2011, 12:30
00:00

Difficulty:

55% (hard)

Question Stats:

38% (02:15) correct 62% (02:01) wrong based on 13 sessions
The balance of a trader weighs 10% less than it should. Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price?
a)40%
b)8%
c)25%
d)16.66%
e)9%
[Reveal] Spoiler: OA
Intern
Joined: 24 Sep 2011
Posts: 10
Followers: 0

Kudos [?]: 6 [0], given: 1

Re: profit and loss [#permalink]  29 Sep 2011, 14:32
IMO - B.

Original cost before weight adjustment: X
Cost after 90% weight adjustment: 9/10X
20% profit on 9/10X: (120/100)(9/10)(X) or 108X/100
Mark up on original cost of X: (108X/100)/X-1 = 8/100
Founder
Affiliations: AS - Gold, HH-Diamond
Joined: 04 Dec 2002
Posts: 13033
Location: United States (WA)
GMAT 1: 750 Q49 V42
GPA: 3.5
Followers: 2921

Kudos [?]: 15222 [0], given: 3943

Re: profit and loss [#permalink]  03 Oct 2011, 21:11
Expert's post
OA?

OA is B....

 ! If OA is B, why did you not mark it when you posted the question and instead put "OA not provided?"

_________________

Founder of GMAT Club

Just starting out with GMAT? Start here... | Want to know your GMAT Score? Try GMAT Score Estimator
Need GMAT Book Recommendations? Best GMAT Books

Co-author of the GMAT Club tests

Have a blog? Feature it on GMAT Club!

GMAT Club Premium Membership - big benefits and savings

Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 5967
Location: Pune, India
Followers: 1527

Kudos [?]: 8424 [1] , given: 193

Re: The balance of a trader weighs 10% less than it should [#permalink]  04 Oct 2011, 09:17
1
KUDOS
Expert's post
The balance of a trader weighs 10% less than it should. Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price?
a)40%
b)8%
c)25%
d)16.66%
e)9%

The most natural way to deal with 'weights' questions is by assuming values.

Say the trader's balance shows 100 gms. It is actually 90 gms because it weighs 10% less. Say, the cost price is $90 ($1/gm). Since he gets a profit of 20%, the selling price must be 90+(20/100)*90 = $108 Since the cost price is actually supposed to be$100 (for 100 gms) and the selling price is $108, the mark up is simply 8%. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

Veritas Prep Reviews

Intern
Joined: 10 Sep 2011
Posts: 12
Concentration: Finance, Strategy
GMAT Date: 12-27-2011
GPA: 3.77
WE: Operations (Investment Banking)
Followers: 0

Kudos [?]: 5 [0], given: 5

Re: The balance of a trader weighs 10% less than it should [#permalink]  06 Oct 2011, 00:32
I am bit confused here.

Question reads “The balance of a trader weighs 10% less than it should.”
I guess this means the balance of the trader weighs 90gms when the actual weight is 100gms.

Assuming original cost price = c and marked up selling price =s
90 x s = 100 x (120% x c) ---- Here LHS is the cash made by selling 90gm at selling price
---- Here RHS is what the seller actually intends i.e. selling the 100gm at 120% of original cost price.

90s =120c
s/c =12/9
s=1.33c

Hence the original price has to be jacked up by 33.33 % to get the intended profit.

P.S - I am solving purely looking at the question. The underlined portion substantiates my doubt.
The balance of a trader weighs 10% less than it should. Still the trader marks up his goods to get an overall profit
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 5967
Location: Pune, India
Followers: 1527

Kudos [?]: 8424 [0], given: 193

Re: The balance of a trader weighs 10% less than it should [#permalink]  06 Oct 2011, 01:55
Expert's post
MrGolfer wrote:
I am bit confused here.

Question reads “The balance of a trader weighs 10% less than it should.”
I guess this means the balance of the trader weighs 90gms when the actual weight is 100gms.

'Balance weighs 10% less than it should'

What this actually means is that if the balance shows 100 gms, it should weigh 100 gms of produce. But it weighs only 90 gms of produce (10% less).
So you pay for 100 gms but you get to buy only 90 gms.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Joined: 10 Sep 2011 Posts: 12 Concentration: Finance, Strategy GMAT Date: 12-27-2011 GPA: 3.77 WE: Operations (Investment Banking) Followers: 0 Kudos [?]: 5 [0], given: 5 Re: The balance of a trader weighs 10% less than it should [#permalink] 06 Oct 2011, 02:42 I would differ here. Question reads “The balance of a trader weighs 10% less than it should.” which implies “The balance of a trader weighs 10% less than it should [weigh].” i.e. 90gm when it should weigh 100gm. And taking it further "Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price?" I guess a lot us are working backwards to fit in the answer choice. I guess knowing the source of the question will be great help. @upasanadatta - Please advise the source of the question. Manager Status: Bell the GMAT!!! Affiliations: Aidha Joined: 16 Aug 2011 Posts: 183 Location: Singapore Concentration: Finance, General Management GMAT 1: 680 Q46 V37 GMAT 2: 620 Q49 V27 GMAT 3: 700 Q49 V36 WE: Other (Other) Followers: 5 Kudos [?]: 53 [0], given: 43 Re: The balance of a trader weighs 10% less than it should [#permalink] 06 Oct 2011, 04:25 MrGolfer wrote: I would differ here. Question reads “The balance of a trader weighs 10% less than it should.” which implies “The balance of a trader weighs 10% less than it should [weigh].” i.e. 90gm when it should weigh 100gm. And taking it further "Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price?" I guess a lot us are working backwards to fit in the answer choice. I guess knowing the source of the question will be great help. @upasanadatta - Please advise the source of the question. I agree with MrGolfer here. I think the profit should be on 100 and not 90. Even I got 33.33%. Source and OE (if possible) please. _________________ If my post did a dance in your mind, send me the steps through kudos :) My MBA journey at http://mbadilemma.wordpress.com/ Math Forum Moderator Joined: 20 Dec 2010 Posts: 2026 Followers: 145 Kudos [?]: 1258 [0], given: 376 Re: The balance of a trader weighs 10% less than it should [#permalink] 06 Oct 2011, 05:29 upasanadatta wrote: The balance of a trader weighs 10% less than it should. Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price? a)40% b)8% c)25% d)16.66% e)9% Bad wording. I think the markup is 20% as mentioned in the stem. OR, the question should say; What is the mark up on the SUPPOSED cost price as Karishma mentioned. Either way; bad question. _________________ Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 5967 Location: Pune, India Followers: 1527 Kudos [?]: 8424 [1] , given: 193 Re: The balance of a trader weighs 10% less than it should [#permalink] 07 Oct 2011, 02:20 1 This post received KUDOS Expert's post fluke wrote: upasanadatta wrote: The balance of a trader weighs 10% less than it should. Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price? a)40% b)8% c)25% d)16.66% e)9% Bad wording. I think the markup is 20% as mentioned in the stem. OR, the question should say; What is the mark up on the SUPPOSED cost price as Karishma mentioned. Either way; bad question. I guess if many people are troubled by the wording, it must be one of those questions where the wording implies different things depending on your background. I wouldn't worry about such a question. That said, defective balance/weight questions are often worded in one of these ways: 1. The 1 kg weight weighs 10% less. (Here the weight is the metal piece which is supposed to weigh a kg and is put on one pan of the beam balance. So the product you want to buy is in the other pan and you will get only 900 gms though you will pay for 1 kg) 2. The balance weighs 10% less than it should. I think of a spring balance here. It displays 1 kg but weighs only 900 gms of the product. 3. The balance reads 10% more than what it weighs. Here, if the product is 100 gms, the balance reads 110 gms and you pay for 110 gms. Also, marked price is always on what is visible to all. The defect in the balance is an anomaly and leads to extra profit for the trader. Otherwise, when he marks up, he does that on what the balance reads. But as I said, if you have learned it differently, don't worry. In GMAT, it will be very clear what the intended meaning is. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

Veritas Prep Reviews

Intern
Joined: 26 May 2011
Posts: 19
Location: United States
Followers: 0

Kudos [?]: 56 [0], given: 0

Re: The balance of a trader weighs 10% less than it should [#permalink]  07 Oct 2011, 07:19
VeritasPrepKarishma wrote:
fluke wrote:
The balance of a trader weighs 10% less than it should. Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price?
a)40%
b)8%
c)25%
d)16.66%
e)9%

Bad wording. I think the markup is 20% as mentioned in the stem.
OR, the question should say;
What is the mark up on the SUPPOSED cost price as Karishma mentioned.

I guess if many people are troubled by the wording, it must be one of those questions where the wording implies different things depending on your background. I wouldn't worry about such a question.

That said, defective balance/weight questions are often worded in one of these ways:
1. The 1 kg weight weighs 10% less. (Here the weight is the metal piece which is supposed to weigh a kg and is put on one pan of the beam balance. So the product you want to buy is in the other pan and you will get only 900 gms though you will pay for 1 kg)
2. The balance weighs 10% less than it should. I think of a spring balance here. It displays 1 kg but weighs only 900 gms of the product.
3. The balance reads 10% more than what it weighs. Here, if the product is 100 gms, the balance reads 110 gms and you pay for 110 gms.

Also, marked price is always on what is visible to all. The defect in the balance is an anomaly and leads to extra profit for the trader. Otherwise, when he marks up, he does that on what the balance reads.

But as I said, if you have learned it differently, don't worry. In GMAT, it will be very clear what the intended meaning is.

Thanks for explaining.
Manager
Joined: 16 Sep 2011
Posts: 182
Concentration: Strategy, Operations
Schools: ISB '15
GMAT 1: 720 Q48 V40
GPA: 3.18
WE: Supply Chain Management (Manufacturing)
Followers: 13

Kudos [?]: 46 [0], given: 34

Re: The balance of a trader weighs 10% less than it should [#permalink]  12 Oct 2011, 00:42
MrGolfer wrote:
I would differ here.
Question reads “The balance of a trader weighs 10% less than it should.” which implies “The balance of a trader weighs 10% less than it should [weigh].” i.e. 90gm when it should weigh 100gm. And taking it further "Still the trader marks up his goods to get an overall profit of 20%. What is the mark up on the cost price?"

I guess a lot us are working backwards to fit in the answer choice. I guess knowing the source of the question will be great help.

@bb: you see, this is precisely why i didnt mark the official answer....ppl have a tendency to 'backsolve' when the answer is known..
@MrGolfer: My thought process more or less followed the same path as yours....but i agree with Karishma's explanation...and also the fact that the wording is not clear in the question.....the OE is same as Karishma's but but not half as clear. The source is a book meant for MBA entrance exams here in India and not really a GMAT practice material...its name is Quantum CAT by Sarvesh Verma ....bad english but an excellent book otherwise....
Re: The balance of a trader weighs 10% less than it should   [#permalink] 12 Oct 2011, 00:42
Similar topics Replies Last post
Similar
Topics:
3 If Leo gains 10 pounds, he will weigh 50% more than his brother. Curre 5 22 Jan 2015, 06:44
Positive ints less than 10,000 2 29 Sep 2011, 01:59
6 The number of the members of a club is more than 10 and less 5 26 Aug 2011, 11:42
17 How many positive integers less than 10,000 are such that the product 13 16 Oct 2010, 00:42
4 How many positive integers less than 10,000 are there in whi 9 11 Jan 2010, 11:34
Display posts from previous: Sort by