Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack
GMAT Club

 It is currently 25 Mar 2017, 08:42

GMAT Club Daily Prep

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

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Show Tags

13 Oct 2008, 20:02
2
KUDOS
17
This post was
BOOKMARKED
00:00

Difficulty:

45% (medium)

Question Stats:

59% (02:07) correct 41% (00:48) wrong based on 729 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, 02:54, 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 [?]: 23 [0], given: 0

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? (10-40 =60%)

what is OA?

Thanks
Senior Manager
Joined: 26 Jan 2008
Posts: 267
Followers: 4

Kudos [?]: 103 [6] , given: 16

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

Show Tags

13 Oct 2008, 20:50
6
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
_________________
Director
Status: No dream is too large, no dreamer is too small
Joined: 14 Jul 2010
Posts: 651
Followers: 44

Kudos [?]: 924 [0], given: 39

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: 15
GMAT Date: 10-25-2012
GPA: 3
Followers: 1

Kudos [?]: 30 [1] , given: 6

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

Show Tags

27 Jul 2012, 18:41
1
KUDOS
1
This post was
BOOKMARKED
Selling Price = S

S = 150 + .40S

S = 250

Profit = 250 - 150 = 100
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 14407
Followers: 604

Kudos [?]: 174 [0], given: 0

Show Tags

12 Sep 2013, 02:58
Expert's post
9
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

Show Tags

19 Oct 2014, 21:39
2
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 Veritas Prep Reviews Intern Joined: 09 Jan 2014 Posts: 6 Followers: 0 Kudos [?]: 0 [0], given: 12 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!
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 14407
Followers: 604

Kudos [?]: 174 [0], given: 0

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 = 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: 165
GMAT 1: 690 Q46 V38
Followers: 4

Kudos [?]: 45 [0], given: 5

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 = 250-150

GP = $100 Answer: E Math Forum Moderator Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 2556 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) Followers: 99 Kudos [?]: 753 [0], given: 323 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 1006 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 )

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 14407
Followers: 604

Kudos [?]: 174 [0], given: 0

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: 300
GMAT 1: 600 Q44 V27
Followers: 1

Kudos [?]: 16 [0], given: 36

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.....

Go to page    1   2    Next  [ 23 posts ]

Similar topics Replies Last post
Similar
Topics: