A furniture dealer purchased a desk for $150 and then set th

I am not sure but i tried in following way:

150+ 40 =190 is divistible by 60 ..no..
150+ 60 =210 is divistible by 60 ..no..
150+ 80 =230 is divistible by 60 ..no..
150+ 90 =240 is divistible by 60 ..YES..
150+ 100 =250 is divistible by 60 ..no..


why division by 60? (10-40 =60%)

what is OA?

Thanks

x-0.40=150
x=250
gross profit 250-150=100.

let my selling price be 100x
then according to the prompt
150+40x=100x
this means 100x=SP=250
So profit is 100
Option E is correct

Here's how I did it mentally:
the markup is 40% of the total price, the cost of 150 is 60 percent of the cost
hence the markup is two thirds of 150 = 50*2 =100

That's probably more like a 600-700 question I think

Hope it helps

Selling Price = S

S = 150 + .40S

S = 250

Profit = 250 - 150 = 100

hi all.

I love math but hate GMAT math.
Anyway, I'm getting confused with the terminology in this question. If the markup is 40% is that not the same thing as the profit? ie. isn't the markup the difference between the selling price and the cost?

I might be missing something basic here. With this thinking, I just had selling price = to 140% of cost and got the answer wrong. I've seen how people solve it but I just don't understand the business or visual part of it.... HELP!

PS - Why am I asking these types of questions 2 weeks before my exam

No, mark up is the difference between cost price and list price (or tag price or marked price). The list price may be different from selling price if the store offers a discount.

Look at it from the store's perspective. It buys a shirt at $100 and marks it up by 50% i.e. writes $150 as the list price on the shirt. The shirt doesn't sell for a month after which the store has a sale of 10% on everything. Someone buys the shirt during the sale at this 10% discount i.e. 150 - 10% of 150 = $135. So the selling price of the shirt is $135. So here, mark up was 50% but profit was 35%.

Anyway, in this question, there is no discount but the mark up is given as 40% of the selling price. So it is not 40% of $150 but instead, 40% of Selling price which is obtained by adding mark up to $150.

So if selling price is S,
150 + 40% of S = S
S = 250

Profit = 100 which is calculated on cost price in % terms. So 100/150 * 100 = 66.67% is profit.
Note that usually mark up is also calculated on cost price and hence mark up percentage would be 100/150 = 66.7% - i.e. same as profit% since there is no discount in this case. This question just gives you mark up on selling price and hence you need to do suitable modifications.

wow, thanks for the explanation on the list price bit. i guess that was the missing link, i too was having a hard time trying to understand why there's a gap in the understanding. the list price part fill in the void nicely!

CP = $150.
SP = $150 + 40%(SP)

So, (0.6) (SP) = $150

SP = $150/0.6 = $250.

So, GP = SP-CP = $250-$150 = $100. Ans (E).

Purchase price = $150
Selling Price = SP

SP = 150 + 0.4SP
0.6SP = 150
SP = 250

GP = 250-150

GP = $100

Answer: E

Very sorry for the issue , reposting as attachment -

PP + 40%SP = SP
PP + 4/10 * SP = SP
6SP = 1500
SP =25o

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

my solution:

\(150(1+\frac{x}{100})=S\) S is selling price. X is the markup.

also \(x=\frac{4}{10}S\)

substitute: \(150(1+\frac{4s}{10/100})=S\)
\(150+\frac{6s}{10}=S\)
\(1500+6S=10S\)

Selling price = 375.

WHY is this wrong????? The logic seems perfect, yet its wrong, omg what is going on here.....

Your solution would be correct if the 'markup' were given as a percentage markup (i.e. if it said something like 'a markup of 40%' or 'a 40% markup'.) However, in this problem, you're given the dollar amount of the markup. Sure, they describe it to you in terms of percents, but '40 percent of the selling price' refers to a dollar amount, not a percentage value. In your equation, you're dividing it by 100, which indicates that you thought of it as a percentage markup.

What you actually want to start with is:

selling price = 150 + 4/10(selling price)

That is, the selling price starts at 150, and then is increased by a dollar amount equal to 40 percent of the selling price.

Very simple to understand forget about the algebra it will only confuse you. The desk cost !50 dollars, and the dealer wanted to set the selling price equal to an an amount. Now that amount included a markup that was 40% of the selling price. So 40% of 150 is 60 however he needs to make a profit. So he has to increase the price to a higher amount to obtain the 40% markup. In this case the markup would be $90 dollars so the dealer must raise the price to a certain amount in this case to $240 because 60% of the original 150 cost would add the amount equivalent to the markup and gross profit!

Here is how I do it.
Selling Price = S

S = 150 + .40S

S = 250

Profit = 250 - 150 = 100

I hope it's right.

Let S = the selling price

The dealer ... set the selling price equal to purchasing price ($150) plus a markup that was 40% of selling price.
So, the markup = 0.4S
In other words: S = 150 + 0.4S
Subtract 0.4S from both sides to get: 0.6S = 150
Solve: S = 250
In other words, the selling price was $250

What was the dealer's gross profit from the purchase and the sale of the desk?
The profit = $250 - $150 = $100

Answer: E

Cheers,
Brent