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udribat
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?

A. $40
B. $60
C. $80
D. $90
E. $100


I used the options to help me out here, as i was sort of not confident!
let's start with E: 100

s.p - c.p = profit
s.p - 150=100
so s.p = 250 ---1

s.p=150(given:c.p)+100 ---eq2
lets deep dive into this 100 and look at the question " set the selling price equal to the purchase price plus a markup that was 40% of the selling price"
ok, we have the purchase price 150$, plus "40% of the selling price"
"40% of the selling price" we know this equals 100 from equation 2.
100=40% of the selling price, from 1, we know it's 250
100=40% of 250
100=100.. hence proved.. long but works when you are unsure.
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Purchase price = $150
let selling price = s

s = $150 + 0.4s
0.6s = 150
s = 250

250 - 150 = $100

Answer is E.
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udribat
A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase and the sale of the desk?

A. $40
B. $60
C. $80
D. $90
E. $100


Selling Price = x

150+0.40x=x

⇒ 0.60x=150

∴ x=250

Profit 250-150=100

The answer is E
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CP = 150
SP = 150 + (40/100) * SP
SP = 250

Hence profit = 250 - 150 => 100
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Cost Price of the dealer, CP = $150.
Let the selling price of the desk = SP.

Then, as per the question, SP = CP + \(\frac{2}{5}\) * SP.

Note that \(\frac{2}{5}\) * SP represents the mark up here.
The term mark-up refers to the additional amount introduced over the cost price, to ensure that a discount can be given and profit be made ( in most cases)

So, SP = 150 + \(\frac{2}{5}\) * SP.

Transferring the SP term on to the LHS and simplifying, we get SP = 250.
This means that the selling price of the desk = $ 250.

Profit = Selling Price – Cost Price.
Therefore, gross profit made by the dealer = 250 – 150 = 100.
The dealer made a profit of $100.

The correct answer option is E.
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Hello from the GMAT Club BumpBot!

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