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A furniture dealer purchased a desk for $150 and then set th [#permalink] ### Show Tags 13 Oct 2008, 19:02 2 This post received KUDOS 16 This post was BOOKMARKED 00:00 Difficulty: 45% (medium) Question Stats: 59% (02:04) correct 41% (00:49) wrong based on 672 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?

A. $40 B.$60
C. $80 D.$90
E. $100 [Reveal] Spoiler: OA Last edited by Bunuel on 12 Sep 2013, 01:54, edited 1 time in total. Renamed the topic, edited the question and added the OA. Manager Joined: 09 Oct 2008 Posts: 93 Followers: 1 Kudos [?]: 21 [0], given: 0 Re: Simple but still having trouble :( [#permalink] ### Show Tags 13 Oct 2008, 19:09 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 Senior Manager Joined: 26 Jan 2008 Posts: 267 Followers: 4 Kudos [?]: 102 [5] , given: 16 Re: Simple but still having trouble :( [#permalink] ### Show Tags 13 Oct 2008, 19:50 5 This post received KUDOS 1 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?

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

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26 Jul 2012, 09:53
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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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Last edited by Bunuel on 26 Jul 2012, 22:26, edited 1 time in total.
Edited the question.
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26 Jul 2012, 10:18
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
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26 Jul 2012, 17:10
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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11 Sep 2013, 06:57
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Re: A furniture dealer purchased a desk for $150 and then set th [#permalink] ### Show Tags 12 Sep 2013, 01:58 Expert's post 8 This post was BOOKMARKED 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 Similar questions to practice: a-shop-purchased-a-pair-of-sunglasses-for-120-and-was-139958.html a-photography-dealer-ordered-60-model-x-cameras-to-be-sold-132077.html a-merchant-purchased-a-jacket-for-60-and-then-determined-104375.html a-retailer-bought-a-shirt-at-wholesale-and-marked-it-up-130759.html a-dress-is-marked-up-16-2-3-to-a-final-price-of-140-what-155046.html _________________ Current Student Joined: 26 Aug 2014 Posts: 827 Concentration: Marketing GMAT 1: 680 Q V GPA: 3.4 Followers: 7 Kudos [?]: 159 [0], given: 98 Re: A furniture dealer purchased a desk for$150 and then set th [#permalink]

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19 Oct 2014, 14:57
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] ### Show Tags 19 Oct 2014, 20:39 2 This post received KUDOS Expert's post 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. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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14 Jul 2015, 10:33
Hello from the GMAT Club BumpBot!

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Re: A furniture dealer purchased a desk for $150 and then set th [#permalink] ### Show Tags 14 Jul 2015, 17:35 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). _________________ I used to think the brain was the most important organ. Then I thought, look what’s telling me that. BSchool Forum Moderator Joined: 23 Feb 2015 Posts: 156 GMAT 1: 690 Q46 V38 GPA: 3.4 WE: Military Officer (Military & Defense) Followers: 4 Kudos [?]: 39 [0], given: 5 Re: A furniture dealer purchased a desk for$150 and then set th [#permalink]

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27 Nov 2015, 08:25
Purchase price = $150 Selling Price = SP SP = 150 + 0.4SP 0.6SP = 150 SP = 250 GP = 250-150 GP =$100

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30 Nov 2015, 08:43
Abhishek009,

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

Thanks!
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30 Nov 2015, 09:07
Abhishek009 wrote:
Dondarrion wrote:
Abhishek009,

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

Thanks!

Here you go sir -

Images you post are not visible at all.
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