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A Certain radio costs the merchant $72. At what price must the merchan

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

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New post 10 Jul 2010, 21:33
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A Certain radio costs the merchant $72. At what price must the merchant sell this radio in order to make a profit of 20% of the selling price?

A $86.4
B $92
C $90
D $144
E $148

(I keep on getting the wrong answer, please provide the exact method/technique to solve these questions)

Thanks
Farukh
[Reveal] Spoiler: OA

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

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New post 10 Jul 2010, 21:46
I've done it.
Let x be a selling price.
72+0.2x=x
x=90 (C)
0.2x is the 20% profit.
Where am i wrong?

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

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New post 10 Jul 2010, 23:19
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ulm wrote:
I've done it.
Let x be a selling price.
72+0.2x=x
x=90 (C)
0.2x is the 20% profit.
Where am i wrong?


This is the correct method. Ans is C
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+1 kudos me if this is of any help...

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

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New post 11 Jul 2010, 02:43
Thanks for your support. I appreciate it.

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

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New post 16 Jul 2010, 02:23
If selling price is Rs100 and profit is Rs20 (20%) which means cost price is Rs80

Now we will calculate what percent of cost price is profit, x% of 80 = 20

so x becomes 25%, now we know when profit percent is 20% of selling price then that is 25% of cost price,

In question Cost price is Rs72, 25% of 72 will give us profit = Rs18

So selling price = 72+18 = 90

correct answer is 90

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

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New post 04 Aug 2017, 23:29
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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

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New post 04 Aug 2017, 23:45
lets consider selling price is =x
now profit earned by seller is = x-72
so (x-72) =X.20%
will get x=90 .
correct answer is C

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

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New post 06 Sep 2017, 21:42
Check the answers.
The question says that what should be the selling price to earn a profit of 20% on the selling price.
90*.2=18
90-18=72. Hence C

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

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New post 06 Sep 2017, 21:53
Profit=Selling Price - Cost Price
Let x be the selling price, therefore profit would be 0.2x

0.2x=x-72
0.8x=72
x=90
Hence Answer is C.

Kudos if it helps.

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

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New post 07 Sep 2017, 01:11
Normally the profit is expressed as profit =Selling price - Cost price
But here we are told that the profit is 20 percent of Selling price .
Let the selling price be X then profit =0.2x
Now the profit according formula = X-72=0.2X
0.8X=72
X=90
the answer is C
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A Certain radio costs the merchant $72. At what price must the merchan [#permalink]

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New post 09 Sep 2017, 12:14
farukhawais wrote:
A Certain radio costs the merchant $72. At what price must the merchant sell this radio in order to make a profit of 20% of the selling price?

A $86.4
B $92
C $90
D $144
E $148

(I keep on getting the wrong answer, please provide the exact method/technique to solve these questions)

Thanks
Farukh

This problem is just a little hard to translate. Instead of trying to determine "at what price," with a formula, I started with what is given and used logic.

Start with "make a profit of 20 percent of the selling price":
.20SP = \(\frac{1}{5}\)SP

That's the desired profit.

His cost is $72.

He needs to recoup that cost, and add profit. Once he does that (adds cost + profit) . . . he must have his sell price. (There is not much else the result of that sum could be.)

CP + profit = SP

CP = 72
profit = \(\frac{1}{5}\)SP

72 + \(\frac{1}{5}\)SP = SP
72 = \(\frac{4}{5}\)SP
72 * \(\frac{5}{4}\) = SP
18 * 5 = SP
90 = SP

ANSWER C

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

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New post 11 Sep 2017, 11:42
farukhawais wrote:
A Certain radio costs the merchant $72. At what price must the merchant sell this radio in order to make a profit of 20% of the selling price?

A $86.4
B $92
C $90
D $144
E $148


Let’s let r = selling price. We see that (r - 72) = profit, which is 20% of the selling price. Thus, we have:

r - 72 = 0.2r

0.8r = 72

r = 72/0.8 = 720/8 = 90

Answer: C
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Re: A Certain radio costs the merchant $72. At what price must the merchan   [#permalink] 11 Sep 2017, 11:42
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