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10 Jul 2010, 21:33
00:00

Difficulty:

35% (medium)

Question Stats:

57% (01:47) correct 43% (00:12) wrong based on 14 sessions

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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
Manager
Joined: 03 Jun 2010
Posts: 181
Location: United States (MI)
Concentration: Marketing, General Management

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10 Jul 2010, 23:19
1
KUDOS
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
_________________

+1 kudos me if this is of any help...

Manager
Joined: 12 Jun 2010
Posts: 65

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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