Author 
Message 
TAGS:

Hide Tags

Manager
Joined: 08 Oct 2010
Posts: 208
Location: Uzbekistan
Schools: Johnson, Fuqua, Simon, Mendoza
WE 3: 10

A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
25 Nov 2010, 08:20
Question Stats:
45% (02:23) correct 55% (02:33) wrong based on 446 sessions
HideShow timer Statistics
A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed? A. 100% B. 80% C. 75% D. 66+2/3% E. 55%
Official Answer and Stats are available only to registered users. Register/ Login.




GMAT Club Legend
Joined: 16 Oct 2010
Posts: 8127
Location: Pune, India

Re: Profit/Loss question [#permalink]
Show Tags
25 Nov 2010, 16:50
feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed? a) 100% b) 80% c) 75% d) 66+2/3% e) 55% I have explained the Mark up  Discount  Profit relation here: http://gmatclub.com/forum/discountproblem104001.html#p810682This gives us the formula (1 + m/100)(1  d/100) = (1 + p/100) (1 + m/100)(1  20/100) = (1 + 20/100) m = 50 So mark up was 50% in a situation where 12 articles were sold and charged for. i.e. effective mark up turned out to be 50% though his actual mark up was higher since he gave away 16 articles for the cost of 12. Lets say the cost price of each of the 16 articles was $1. Then total cost price was $16 and effective markup was 50% higher on $16 i.e. 16 + 8 = $24. So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100% It is definitely a tricky question. If any parts of the solution are unclear, ask.
_________________
Karishma Private Tutor for GMAT Contact: bansal.karishma@gmail.com




Manager
Joined: 24 Nov 2012
Posts: 171
Concentration: Sustainability, Entrepreneurship
WE: Business Development (Internet and New Media)

Re: Profit/Loss question [#permalink]
Show Tags
11 Aug 2013, 08:41
Tricky Question  But the key is to, as always, understand the question inside out Given Cash Discount  20% Profit  20% Items Sold  16 Price Sold at = List Price of 12 Assume List price = $10 Total Invoice = $120 20% Cash Discount = $96 Let cost price of 16 items be x So total cost = 16*x Given the shopkeeper had a profit of 20% 16 * x * 120/100 = 96 or x = $5 Which means his products were listed at $10 which is a 100% markup over $5 Answer A
_________________
You've been walking the ocean's edge, holding up your robes to keep them dry. You must dive naked under, and deeper under, a thousand times deeper!  Rumi
http://www.manhattangmat.com/blog/index.php/author/cbermanmanhattanprepcom/  This is worth its weight in gold
Economist GMAT Test  730, Q50, V41 Aug 9th, 2013 Manhattan GMAT Test  670, Q45, V36 Aug 11th, 2013 Manhattan GMAT Test  680, Q47, V36 Aug 17th, 2013 GmatPrep CAT 1  770, Q50, V44 Aug 24th, 2013 Manhattan GMAT Test  690, Q45, V39 Aug 30th, 2013 Manhattan GMAT Test  710, Q48, V39 Sep 13th, 2013 GmatPrep CAT 2  740, Q49, V41 Oct 6th, 2013
GMAT  770, Q50, V44, Oct 7th, 2013 My Debrief  http://gmatclub.com/forum/fromtheashesthoushallrise770q50v44awa5ir162299.html#p1284542




Manager
Joined: 08 Oct 2010
Posts: 208
Location: Uzbekistan
Schools: Johnson, Fuqua, Simon, Mendoza
WE 3: 10

Re: Profit/Loss question [#permalink]
Show Tags
25 Nov 2010, 08:37
Here is an official explanation of solution method from "Math Question Bank For GMAT Winners" at www.mygmat.com: Let the CP (cost price) of the article be $x, since he earns a profit of 20%, hence SP (selling price)=1.2x. Loss=[(1612)/16]*100=25% His selling price=SP*0,75 Now> SP*0.75=1.2x SP=1.2x/0.75=1.6x This SP is arrived after giving a discount of 20% on MP (marked price). Hence > MP=1.6x/0.8=2x > it means that article has been marked 100% above the cost price. Can somebody can suggest an alternative solution method with a better explanation?! I appreciate your help +KUDOS for you!



Manager
Joined: 30 Aug 2010
Posts: 89
Location: Bangalore, India

Re: Profit/Loss question [#permalink]
Show Tags
26 Nov 2010, 03:13
In the case of cost/selling/discount stuff problems, just keep ur brain cool and for any problem, note down the below 5 things first. These 5 points will take u further, I swear.
1) C=The actual price = the COST PRICE. è hoe much did it cost to the seller to get that product into his shop. 2) S=selling price è what is the price that he is selling the product for. Hence if S>C è profit and if S<C è Loss. 3) X=SC, difference (profit/loss) he made by removing the $30, for example, sticker and pasting $40 sticker. After all it is his shop and the product (the ball) is in his shop (court) 4) D=the cheating, but cleverly calculated, discount after he made the changes as specified in point3. 5) GOLDEN POINTS: THE DISCOUNT IS ALWAYS ON “S” – THE SELLING PRICE and THE profit/loss IS ALWAYS ON “C” – THE ACTUAL/COST PRICE
Coming to the original qtn: Qtn= How much percent above the cost price were his articles listed – this is point 3 above, i.e. asking for X but in terms of percentage. Hence,the simplified question is à what percent of C is X è X/C * 100 = SC/C *100 è (S/C – 1) * 100
Given. Discount of 20% = 11/5 = 4/5 times S (as per point5) Profit of 20% = 1+1/5 = 6/5 TIMES C (as per point5)
Discount of 20% MADE Profit of 20% ( a clever seller, isn’t he) Hence New SSelling price = (4/5)S
Not only this. Further more. he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer He further reduced the selling price by 12/16 New S = (12/16)(4/5)S
(12/16)(4/5)S give the profit of (6/5)C (12/16)(4/5)S = (6/5)C S/C = 2 As the simplified question is à what percent of C is X è X/C * 100 = SC/C *100 è (S/C – 1) * 100
Answer = (21) * 100 = 100% Or u from S=2C, we can simply say the clever seller has removed the $30 (i.e C), for an example, sticker and pasted the $60 (i.e S=2C) sticker. 100% over the cost price is listed
Regards, Murali.



SVP
Joined: 06 Sep 2013
Posts: 1869
Concentration: Finance

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
18 Feb 2014, 09:17
feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed?
A. 100% B. 80% C. 75% D. 66+2/3% E. 55% Wow! this one one tough one. Let's see Let's call 'P' the price and 'C' the cost We have 0.8P = 1.2C Now we also know that we had an additional (1612)/16=4/16=3/4 discount on the price Therefore (4/5)(3/4)P = 6/5 C P/C = 2 So they won 100%. A is the correct answer Hope this is clear Cheers J



SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1837
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
18 Feb 2014, 22:38
How much time taken to solve this problem?? Its taking above 2 minutes for me. Any suggestions please?
_________________
Kindly press "+1 Kudos" to appreciate



SVP
Joined: 06 Sep 2013
Posts: 1869
Concentration: Finance

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
27 May 2014, 17:10
PareshGmat wrote: How much time taken to solve this problem?? Its taking above 2 minutes for me. Any suggestions please? Yeah around 1.20 for me, but 2 minutes is good for average student



Senior Manager
Joined: 08 Apr 2012
Posts: 396

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
23 Sep 2014, 02:07
VeritasPrepKarishma wrote: feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed? a) 100% b) 80% c) 75% d) 66+2/3% e) 55% I have explained the Mark up  Discount  Profit relation here: http://gmatclub.com/forum/discountproblem104001.html#p810682This gives us the formula (1 + m/100)(1  d/100) = (1 + p/100) (1 + m/100)(1  20/100) = (1 + 20/100) m = 50 So mark up was 50% in a situation where 12 articles were sold and charged for. i.e. effective mark up turned out to be 50% though his actual mark up was higher since he gave away 16 articles for the cost of 12. Lets say the cost price of each of the 16 articles was $1. Then total cost price was $16 and effective markup was 50% higher on $16 i.e. 16 + 8 = $24. So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100% It is definitely a tricky question. If any parts of the solution are unclear, ask. Hi Karishma, I got this far: VeritasPrepKarishma wrote: This gives us the formula (1 + m/100)(1  d/100) = (1 + p/100) (1 + m/100)(1  20/100) = (1 + 20/100) Since he gave away 16 for the price of 12, I multiplied the left side by 3/4 and got the right result. My question is how you proceeded from that part: VeritasPrepKarishma wrote: Lets say the cost price of each of the 16 articles was $1. Then total cost price was $16 and effective markup was 50% higher on $16 i.e. 16 + 8 = $24. So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100% Once you got the 24$, why did you calculate how much of a markup it was on the 12 items? I didn't get the transition between the 12 and 16. Can you help with that?



GMAT Club Legend
Joined: 16 Oct 2010
Posts: 8127
Location: Pune, India

A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
23 Sep 2014, 21:41
ronr34 wrote: VeritasPrepKarishma wrote: feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed? a) 100% b) 80% c) 75% d) 66+2/3% e) 55% I have explained the Mark up  Discount  Profit relation here: http://gmatclub.com/forum/discountproblem104001.html#p810682This gives us the formula (1 + m/100)(1  d/100) = (1 + p/100) (1 + m/100)(1  20/100) = (1 + 20/100) m = 50 So mark up was 50% in a situation where 12 articles were sold and charged for. i.e. effective mark up turned out to be 50% though his actual mark up was higher since he gave away 16 articles for the cost of 12. Lets say the cost price of each of the 16 articles was $1. Then total cost price was $16 and effective markup was 50% higher on $16 i.e. 16 + 8 = $24. So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100% It is definitely a tricky question. If any parts of the solution are unclear, ask. Hi Karishma, I got this far: VeritasPrepKarishma wrote: This gives us the formula (1 + m/100)(1  d/100) = (1 + p/100) (1 + m/100)(1  20/100) = (1 + 20/100) Since he gave away 16 for the price of 12, I multiplied the left side by 3/4 and got the right result. My question is how you proceeded from that part: VeritasPrepKarishma wrote: Lets say the cost price of each of the 16 articles was $1. Then total cost price was $16 and effective markup was 50% higher on $16 i.e. 16 + 8 = $24. So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100% Once you got the 24$, why did you calculate how much of a markup it was on the 12 items? I didn't get the transition between the 12 and 16. Can you help with that? Here is the logic I used: Say, the cost price of each article is $1. We get that the effective mark up is 50%. So the buyer buys products worth $16 which were effectively marked up at $16 + 50% of 16 = $24. So the buyer saw the marked price as $24. But this was the marked price on 12 articles which have a cost price of $12. So actual markup is 100%. I am not sure what logic you used to multiply the left hand side by 3/4.
_________________
Karishma Private Tutor for GMAT Contact: bansal.karishma@gmail.com



Manager
Joined: 28 Aug 2013
Posts: 89
Location: India
Concentration: Operations, Marketing
GMAT Date: 08282014
GPA: 3.86
WE: Supply Chain Management (Manufacturing)

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
25 Sep 2014, 01:18
feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed?
A. 100% B. 80% C. 75% D. 66+2/3% E. 55% I find assuming CP (Sticker) as 100 was easier . Total cost of 12 articles = 1200 He offer 20 % discount on it , therefore Selling price = 1200  1200*.2 = 960 SP of 16 articles comes out to be 960 , therefore 1 article cost : 60 Now, On selling articles at 60, shopekeeper still manage to make 20% profit , therefore his actual CP will be calculated by 1.2*Actual CP = 60 Actual CP = 50, Difference between value on sticker & actual CP is 10050 = 50, therefore % increase = 100%
_________________
Gprep1 540 > Kaplan 580>Veritas 640>MGMAT 590 >MGMAT 2 640 > MGMAT 3 640 > MGMAT 4 650 >MGMAT 5 680  >GMAT prep 1 570
Give your best shot...rest leave upto Mahadev, he is the extractor of all negativity in the world !!



Manager
Joined: 14 Sep 2014
Posts: 90
WE: Engineering (Consulting)

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
25 Sep 2014, 23:08
VeritasPrepKarishmaQuestion says "...16 articles to be sold at the cost price of 12 articles..." cost price is actually  rather should be  marked price? as per OA and discussions I understood; if C.P. is 1$ then marked price is 2$ now if 16 articles are sold at 12$ (C.P. of 12$) the shopkeeper is actually at loss of 25% Hope my doubt is clear.



GMAT Club Legend
Joined: 16 Oct 2010
Posts: 8127
Location: Pune, India

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
27 Sep 2014, 04:35
sanket1991 wrote: VeritasPrepKarishmaQuestion says "...16 articles to be sold at the cost price of 12 articles..." cost price is actually  rather should be  marked price? as per OA and discussions I understood; if C.P. is 1$ then marked price is 2$ now if 16 articles are sold at 12$ (C.P. of 12$) the shopkeeper is actually at loss of 25% Hope my doubt is clear. The questions implies that 16 articles are sold at the price of 12. Cost price here does not mean the price at which the 12 articles were bought. That would be a certain loss.
_________________
Karishma Private Tutor for GMAT Contact: bansal.karishma@gmail.com



Intern
Joined: 08 May 2015
Posts: 2
GPA: 3.35

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
05 Apr 2016, 08:24
Karishma , I dont understand this part " So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100%". Can you please explain ?



GMAT Club Legend
Joined: 16 Oct 2010
Posts: 8127
Location: Pune, India

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
05 Apr 2016, 23:26
Monisha2402 wrote: Karishma , I dont understand this part " So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100%". Can you please explain ? Here is another way to think about this if you understood the formula: Let's say the cost price of each article was $1. So cost of 16 articles would be $16. Say, there is no mark up and the articles are sold at $1 too. If 16 articles are given away at the price of 12 articles, the selling price is $12. This means a discount of 4/16 * 100 = 25% So there are two independent discounts involved: a cash discount of 20% and another discount of 25%. Use successive percentages for that. (1 + m/100) * (1  20/100) * (1  25/100) = (1 + 20/100) (1 + m/100) * (1  1/5) * ( 1  1/4) = ( 1 + 1/5) (1 + m/100) = (6/5) * (5/4) * ( 4/3) m = 100
_________________
Karishma Private Tutor for GMAT Contact: bansal.karishma@gmail.com



Senior Manager
Joined: 03 Apr 2013
Posts: 290
Location: India
Concentration: Marketing, Finance
GPA: 3

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
08 Jul 2016, 20:40
VeritasPrepKarishma wrote: feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed? a) 100% b) 80% c) 75% d) 66+2/3% e) 55% I have explained the Mark up  Discount  Profit relation here: http://gmatclub.com/forum/discountproblem104001.html#p810682This gives us the formula (1 + m/100)(1  d/100) = (1 + p/100) (1 + m/100)(1  20/100) = (1 + 20/100) m = 50 So mark up was 50% in a situation where 12 articles were sold and charged for. i.e. effective mark up turned out to be 50% though his actual mark up was higher since he gave away 16 articles for the cost of 12. Lets say the cost price of each of the 16 articles was $1. Then total cost price was $16 and effective markup was 50% higher on $16 i.e. 16 + 8 = $24. So he charged $24 from the customer. This must have been the marked price on 12 articles. So each article must have a marked price of $2 i.e. a mark up of 100% It is definitely a tricky question. If any parts of the solution are unclear, ask. The only confusion in the wording here is "16 articles at the COST PRICE of 12 articles"...if you consider this..it would be a loss...but if its "Selling price" instead of this..kinds of makes sense to me then..please explain..
_________________
Spread some love..Like = +1 Kudos



Intern
Joined: 09 Feb 2013
Posts: 26

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
24 Oct 2016, 07:14
lastshot wrote: feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed?
A. 100% B. 80% C. 75% D. 66+2/3% E. 55% I find assuming CP (Sticker) as 100 was easier . Total cost of 12 articles = 1200 He offer 20 % discount on it , therefore Selling price = 1200  1200*.2 = 960 SP of 16 articles comes out to be 960 , therefore 1 article cost : 60 Now, On selling articles at 60, shopekeeper still manage to make 20% profit , therefore his actual CP will be calculated by 1.2*Actual CP = 60 Actual CP = 50, Difference between value on sticker & actual CP is 10050 = 50, therefore % increase = 100% Can someone please explain the formula to calculate actual CP : actual CP will be calculated by 1.2*Actual CP = 60 Regards Kshitij



Intern
Joined: 19 Feb 2017
Posts: 43

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
06 Apr 2018, 10:38
feruz77 wrote: A dealer offers a cash discount of 20% and still makes a profit of 20% when he further allows 16 articles to be sold at the cost price of 12 articles to a particular sticky bargainer. How much percent above the cost price were his articles listed?
A. 100% B. 80% C. 75% D. 66+2/3% E. 55% What I don't understand is how is the dealer making a profit of 20% when SP of 16 = CP of 12? Isn't this a loss? Is there something missing in the question?



Intern
Joined: 17 Jul 2017
Posts: 20
Location: Canada
GPA: 3.83
WE: Business Development (Other)

Re: A dealer offers a cash discount of 20% and still makes a pro [#permalink]
Show Tags
31 May 2018, 00:52
Let the listed price of 1 article be x, Thus the listed price of 16 articles is 16x.
The shopkeeper sold 16 articles at the price of 12 articles = 12x He would have further given a cash discount of 20%, making the final price= 9.6x
We are told that 9.6x = 120% of the cost of 16 articles (Say P).
Thus P= (9.6x*100)/120 = 8x
8x is the cost. Since the articles were listed at 16x, the shopkeeper has listed at 100% above the original rate.




Re: A dealer offers a cash discount of 20% and still makes a pro
[#permalink]
31 May 2018, 00:52






