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

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

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New post Updated on: 12 Sep 2013, 02:54
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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

Originally posted by udribat on 13 Oct 2008, 20:02.
Last edited by Bunuel on 12 Sep 2013, 02:54, edited 1 time in total.
Renamed the topic, edited the question and added the OA.
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Re: A furniture dealer purchased a desk for $150 and then set th  [#permalink]

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New post 12 Sep 2013, 02:58
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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


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

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New post 13 Oct 2008, 20:50
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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?

1) $40
2) $60
3) $80
4) $90
5) $100


(E)

Purchase price = 150
Selling price = x

150 + 0.4*x = x
0.6*x = 150
x = 250

Profit = 250 - 150 = 100
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Re: Simple but still having trouble :(  [#permalink]

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New post 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..


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

what is OA?

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

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

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New post Updated on: 26 Jul 2012, 23:26
1
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
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Originally posted by dheerajv on 26 Jul 2012, 10:53.
Last edited by Bunuel on 26 Jul 2012, 23:26, edited 1 time in total.
Edited the question.
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Re: Problem Solving  [#permalink]

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New post 26 Jul 2012, 11:18
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New post 26 Jul 2012, 18:10
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
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Re: A furniture dealer purchased a desk for $150 and then set  [#permalink]

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New post 27 Jul 2012, 18:41
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1
Selling Price = S

S = 150 + .40S

S = 250

Profit = 250 - 150 = 100
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Re: A furniture dealer purchased a desk for $150 and then set th  [#permalink]

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

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New post 19 Oct 2014, 21:39
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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.
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Re: A furniture dealer purchased a desk for $150 and then set th  [#permalink]

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

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New post 14 Jul 2015, 18:35
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).
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Re: A furniture dealer purchased a desk for $150 and then set th  [#permalink]

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New post 27 Nov 2015, 09:25
Purchase price = $150
Selling Price = SP

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

GP = 250-150

GP = $100

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

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New post 30 Nov 2015, 10:10
Bunuel wrote:
Abhishek009 wrote:
Dondarrion wrote:
Abhishek009,

Can you repost the image? I am getting the red x.

Thanks!


Here you go sir -

Image


Images you post are not visible at all.


Very sorry for the issue :oops: :oops: :oops: , reposting as attachment -
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Untitled.png [ 3.71 KiB | Viewed 12632 times ]


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

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New post 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?

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

PP + 40%SP = SP
PP + 4/10 * SP = SP
6SP = 1500
SP =25o
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I am getting crazy with this. please help...  [#permalink]

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New post 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.

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

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New post 24 Feb 2017, 15:39
2
iliavko 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

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

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

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New post 01 Jan 2018, 11:40
Here is how I do it.
Selling Price = S

S = 150 + .40S

S = 250

Profit = 250 - 150 = 100

I hope it's right.
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Re: A furniture dealer purchased a desk for $150 and then set th &nbs [#permalink] 01 Jan 2018, 11:40
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