Author 
Message 
TAGS:

Hide Tags

Intern
Joined: 12 Jul 2006
Posts: 8

A furniture dealer purchased a desk for $150 and then set th [#permalink]
Show Tags
Updated on: 12 Sep 2013, 02:54
3
This post received KUDOS
26
This post was BOOKMARKED
Question Stats:
62% (01:01) correct 38% (00:47) wrong based on 910 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
Official Answer and Stats are available only to registered users. Register/ Login.
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.



Manager
Joined: 09 Oct 2008
Posts: 93

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..
why division by 60? (1040 =60%)
what is OA?
Thanks



Senior Manager
Joined: 26 Jan 2008
Posts: 260

Re: Simple but still having trouble :( [#permalink]
Show Tags
13 Oct 2008, 20:50
7
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 5) $100 (E) Purchase price = 150 Selling price = x 150 + 0.4*x = x 0.6*x = 150 x = 250 Profit = 250  150 = 100
_________________
My GMAT debrief



Director
Status: No dream is too large, no dreamer is too small
Joined: 14 Jul 2010
Posts: 557

Re: Simple but still having trouble :( [#permalink]
Show Tags
01 May 2011, 01:55
1
This post was BOOKMARKED



Intern
Joined: 15 Jul 2012
Posts: 12
Concentration: Finance, Leadership
GMAT Date: 10252012
GPA: 3

A furniture dealer purchased a desk for $150 and then set [#permalink]
Show Tags
Updated on: 26 Jul 2012, 23:26
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
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.



MBA Section Director
Joined: 19 Mar 2012
Posts: 4970
Location: India
GPA: 3.8
WE: Marketing (NonProfit and Government)

Re: Problem Solving [#permalink]
Show Tags
26 Jul 2012, 11:18



Manager
Joined: 22 Jun 2012
Posts: 52

Re: Problem Solving [#permalink]
Show Tags
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 600700 question I think
Hope it helps



Manager
Joined: 28 Sep 2011
Posts: 64
Location: United States
GMAT 1: 520 Q34 V27 GMAT 3: 690 Q47 V38
GPA: 3.01
WE: Information Technology (Commercial Banking)

Re: A furniture dealer purchased a desk for $150 and then set [#permalink]
Show Tags
27 Jul 2012, 18:41
1
This post received KUDOS
1
This post was BOOKMARKED
Selling Price = S
S = 150 + .40S
S = 250
Profit = 250  150 = 100



Math Expert
Joined: 02 Sep 2009
Posts: 44656

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]
Show Tags
12 Sep 2013, 02:58



Director
Joined: 26 Aug 2014
Posts: 826
Concentration: Marketing
Schools: HBS '17 (S), Kellogg '17 (M), Booth '17 (A), CBS '17 (D), Insead Sept '16 (D), HEC Sept'16 (A), CnsrtmAnderson '17 (A), CnsrtmStern '17 (D), CnsrtmKenanFlagler '17 (A), CnsrtmMarshall '17 (A), CnsrtmYale '17 (D), CnsrtmRoss '17 (A)
GPA: 3.4

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



Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 8025
Location: Pune, India

A furniture dealer purchased a desk for $150 and then set th [#permalink]
Show Tags
19 Oct 2014, 21:39
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
Veritas Prep Reviews



Intern
Joined: 09 Jan 2014
Posts: 6

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!



Senior Manager
Joined: 28 Jun 2015
Posts: 297
Concentration: Finance
GPA: 3.5

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]
Show Tags
14 Jul 2015, 18:35
CP = $150. SP = $150 + 40%(SP) So, (0.6) (SP) = $150 SP = $150/0.6 = $250. So, GP = SPCP = $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.



Current Student
Joined: 23 Feb 2015
Posts: 169

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]
Show Tags
27 Nov 2015, 09:25
Purchase price = $150 Selling Price = SP
SP = 150 + 0.4SP 0.6SP = 150 SP = 250
GP = 250150
GP = $100
Answer: E



Board of Directors
Status: QA & VA Forum Moderator
Joined: 11 Jun 2011
Posts: 3405
Location: India
GPA: 3.5
WE: Business Development (Commercial Banking)

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]
Show Tags
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  Images you post are not visible at all. Very sorry for the issue , reposting as attachment 
Attachments
Untitled.png [ 3.71 KiB  Viewed 8262 times ]
_________________
Thanks and Regards
Abhishek....
PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS
How to use Search Function in GMAT Club  Rules for Posting in QA forum  Writing Mathematical Formulas Rules for Posting in VA forum  Request Expert's Reply ( VA Forum Only )



Manager
Joined: 14 Jul 2016
Posts: 57
Location: India
Concentration: Strategy, Marketing
GPA: 3.5
WE: Analyst (Computer Software)

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?
A. $40 B. $60 C. $80 D. $90 E. $100 PP + 40%SP = SP PP + 4/10 * SP = SP 6SP = 1500 SP =25o



Senior Manager
Joined: 08 Dec 2015
Posts: 305

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.
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.....



Manhattan Prep Instructor
Joined: 04 Dec 2015
Posts: 509
GRE 1: 340 Q170 V170

Re: A furniture dealer purchased a desk for $150 and then set th [#permalink]
Show Tags
24 Feb 2017, 15:39
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.
_________________



Intern
Joined: 24 Sep 2016
Posts: 37
Location: United States (CT)
Concentration: Finance, International Business
GPA: 3.81
WE: Analyst (Venture Capital)

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!



Intern
Joined: 25 Dec 2017
Posts: 6

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




Re: A furniture dealer purchased a desk for $150 and then set th
[#permalink]
01 Jan 2018, 11:40






