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A certain radio costs a merchant $72. At what price must the merchant

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A certain radio costs a merchant $72. At what price must the merchant  [#permalink]

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New post 27 Feb 2018, 23:50
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A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

89% (00:46) correct 11% (00:51) wrong based on 37 sessions

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Re: A certain radio costs a merchant $72. At what price must the merchant  [#permalink]

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New post 28 Feb 2018, 00:28
Bunuel wrote:
A certain radio costs a merchant $72. At what price must the merchant sell this radio in order to make a profit of 20%?

(A) $86.40

(B) $92

(C) $90

(D) $144

(E) $148


If the radio costs the merchant $72, in order to make a profit of 20%,

the merchant would have to sell the radio at 1.2*$72 = $86.40

Therefore, the merchant must sell the radio at $86.40(Option A) to make a profit of 20%
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Re: A certain radio costs a merchant $72. At what price must the merchant  [#permalink]

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New post 28 Feb 2018, 11:30
1

Solution



We are given:

    • Profit= 20% of cost price
    • Cost= $72

We need to find:

    • Selling price such that merchant makes a profit of 20%

We know,

    • Selling price= Cost price + profit
    • Selling price= Cost price+ 20% of cost price
    • Selling price= $72+20/100* $72
    • Selling price= $72+ 0.2* $72
    • Selling price= $72+$14.40
    • Selling Price= $86.40

Answer: A
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Re: A certain radio costs a merchant $72. At what price must the merchant  [#permalink]

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New post 01 Mar 2018, 18:34
Bunuel wrote:
A certain radio costs a merchant $72. At what price must the merchant sell this radio in order to make a profit of 20%?

(A) $86.40

(B) $92

(C) $90

(D) $144

(E) $148


We can let R = revenue and create the equation:

R - 72 = 0.2(72)

R - 72 = 14.4

R = 86.4

Answer: A
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Re: A certain radio costs a merchant $72. At what price must the merchant  [#permalink]

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New post 22 Jun 2019, 21:54
Profit%= 20%
C.P.=$72
Profit= Profit% of C.P.
= 20/100 * 72
= $14.40
S.P. = C.P. + Profit
= 72 + 14.40
= $86.40
Hence Option(A)
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Re: A certain radio costs a merchant $72. At what price must the merchant  [#permalink]

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New post 22 Jun 2019, 22:44
It seems like a very simple question. Then, the idea should be how quickly one solves this.

Selling price = Cost price + Profit = \(72 + \frac{20}{100} = 72 + \frac{1}{5}\)

Looking at the numbers, we can see we will get a decimal answer if we go through with the calculation. A quick peek at the options show that only option A has decimal. So that should be the answer.

Is this one of the right approaches to save few precious seconds?
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Re: A certain radio costs a merchant $72. At what price must the merchant   [#permalink] 22 Jun 2019, 22:44
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