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.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

A furniture dealer purchased a desk for $150 and then set th [#permalink]

Show Tags

13 Oct 2008, 20:02

2

This post received KUDOS

23

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

45% (medium)

Question Stats:

60% (01:03) correct
40% (00:46) wrong based on 902 sessions

HideShow timer Statistics

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?

Re: Simple but still having trouble :( [#permalink]

Show Tags

13 Oct 2008, 20:09

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..

Re: Simple but still having trouble :( [#permalink]

Show Tags

13 Oct 2008, 20:50

7

This post received KUDOS

2

This post was BOOKMARKED

udribat wrote:

A furniture dealer purchased a desk for $150 and then set the selling price to the purchase price plus markup that was 40 percent 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 furniture dealer purchased a desk for $150 and then set [#permalink]

Show Tags

26 Jul 2012, 10:53

1

This post received KUDOS

2

This post was BOOKMARKED

A furniture dealer purchased a desk for $150 and then set the selling price equal to purchasing price plus a markup that was 40% of selling price. If the dealer sold the desk at 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
_________________

get what u like or like what u get

Last edited by Bunuel on 26 Jul 2012, 23:26, edited 1 time in total.

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

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?

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]

Show Tags

19 Oct 2014, 15:57

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

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.
_________________

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]

Show Tags

21 Mar 2015, 18:57

VeritasPrepKarishma wrote:

angelfire213 wrote:

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!

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]

Show Tags

04 Feb 2017, 03:24

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?

I am getting crazy with this. please help... [#permalink]

Show Tags

24 Feb 2017, 09:53

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.

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.

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.
_________________

Chelsey Cooley | Manhattan Prep Instructor | Seattle and Online

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]

Show Tags

26 Feb 2017, 10:52

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!