udribat wrote:
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
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