Last visit was: 08 Jul 2025, 22:48 It is currently 08 Jul 2025, 22:48
Home
GMAT
Messages
Tests
Schools
Events
Rewards
Chat
My Profile
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
   1   2 
User avatar
ScottTargetTestPrep
User avatar
Target Test Prep Representative
Joined: 14 Oct 2015
Last visit: 08 Jul 2025
Posts: 21,064
Own Kudos:
26,110
 [1]
Given Kudos: 296
Status:Founder & CEO
Affiliations: Target Test Prep
Location: United States (CA)
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 21,064
Kudos: 26,110
 [1]
A furniture dealer purchased a desk for $150 and then set th 11 Aug 2019, 19:25
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
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

We are given that 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 percent of the selling price.

We can create the following equation in which s = the selling price.

150 + 0.4s = s

150 = 0.6s

1,500 = 6s

250 = s

Now we can determine the gross profit, which is revenue – cost.

Gross profit = $250 – $150 = $100

Answer: E
User avatar
energetics
User avatar
Joined: 05 Feb 2018
Last visit: 09 Oct 2020
Posts: 298
Own Kudos:
904
Given Kudos: 325
Posts: 298
Kudos: 904
A furniture dealer purchased a desk for $150 and then set th 30 Sep 2019, 12:46
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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

Revenue = Profit - Cost
Revenue = [150 + (4/10)P] - 150

P = 150 + (4/10)P
(6/10)P = 150
P = 150(10/6)
P = 250

R = 250 - 150 = 100
User avatar
matrimonial07
User avatar
Joined: 03 Aug 2019
Last visit: 07 Oct 2019
Posts: 2
Own Kudos:
5
Posts: 2
Kudos: 5
A furniture dealer purchased a desk for $150 and then set th 07 Oct 2019, 00:26
Kudos
Add Kudos
Bookmarks
Bookmark this Post
this is all about furniture dealer purchased desk

the markup is 50% of the total price, the cost of 140 is 70 percent of the cost
hence the markup is two thirds of 160 = 70*2 =140
avatar
sankarsh
avatar
Joined: 15 Jan 2019
Last visit: 21 Apr 2022
Posts: 12
Own Kudos:
13
Given Kudos: 105
Posts: 12
Kudos: 13
A furniture dealer purchased a desk for $150 and then set th 25 Feb 2020, 12:33
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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.
User avatar
Basshead
User avatar
Joined: 09 Jan 2020
Last visit: 07 Feb 2024
Posts: 927
Own Kudos:
286
Given Kudos: 432
Location: United States
Posts: 927
Kudos: 286
A furniture dealer purchased a desk for $150 and then set th 15 Nov 2020, 16:54
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Purchase price = $150
let selling price = s

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

250 - 150 = $100

Answer is E.
User avatar
MHIKER
User avatar
Joined: 14 Jul 2010
Last visit: 24 May 2021
Posts: 945
Own Kudos:
5,453
Given Kudos: 690
Status:No dream is too large, no dreamer is too small
Concentration: Accounting
Posts: 945
Kudos: 5,453
A furniture dealer purchased a desk for $150 and then set th 16 Jan 2021, 13:16
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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
User avatar
VarunTaneja
User avatar
Joined: 25 Jan 2022
Last visit: 16 Dec 2022
Posts: 6
Own Kudos:
1
Given Kudos: 14
Location: India
Concentration: Technology, General Management
GPA: 3.8
WE:Information Technology (Pharmaceuticals and Biotech)
Posts: 6
Kudos: 1
A furniture dealer purchased a desk for $150 and then set th 12 Apr 2022, 22:16
Kudos
Add Kudos
Bookmarks
Bookmark this Post
CP = 150
SP = 150 + (40/100) * SP
SP = 250

Hence profit = 250 - 150 => 100
User avatar
GMATWhizTeam
User avatar
GMATWhiz Representative
Joined: 07 May 2019
Last visit: 03 Jul 2025
Posts: 3,384
Own Kudos:
2,072
Given Kudos: 68
Location: India
GMAT 1: 740 Q50 V41
GMAT 2: 760 Q51 V40
Expert
Expert reply
GMAT 2: 760 Q51 V40
Posts: 3,384
Kudos: 2,072
A furniture dealer purchased a desk for $150 and then set th 13 Apr 2022, 07:39
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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.
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 37,359
Own Kudos:
1,010
Posts: 37,359
Kudos: 1,010
A furniture dealer purchased a desk for $150 and then set th 12 Jun 2025, 06:14
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
   1   2 
Moderators:
Bunuel
Math Expert
102594 posts
Krunaal
PS Forum Moderator
679 posts