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# A furniture delaer purchased a desk for \$150 and then set

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Joined: 15 Jul 2005
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A furniture delaer purchased a desk for \$150 and then set [#permalink]

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01 Sep 2005, 06:05
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0% (00:00) correct 100% (03:03) wrong based on 1 sessions

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A furniture delaer 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 of the sale of the desk?

a) 40
b) 60
c) 80
d) 90
e) 100

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Senior Manager
Joined: 29 Nov 2004
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Location: Chicago

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01 Sep 2005, 08:12
E
150 + 0.4S = S

so S = 250 and profit = 100
_________________

Fear Mediocrity, Respect Ignorance

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Intern
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06 Sep 2005, 12:42
I got a) 40

This is because the sale price was the original price of \$150.00 plus 40%. Since 40% of \$150.00 is \$60.00 the total sale price is \$210.00. This is a profit of \$60 which is a 40% increase over the original purchase price of \$150.00.

I don't understand how you guys got E. Can someone please clarify where I went wrong?

thx

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Manager
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06 Sep 2005, 14:05
edsilver wrote:
I got a) 40

This is because the sale price was the original price of \$150.00 plus 40%. Since 40% of \$150.00 is \$60.00 the total sale price is \$210.00. This is a profit of \$60 which is a 40% increase over the original purchase price of \$150.00.

I don't understand how you guys got E. Can someone please clarify where I went wrong?

thx

I think you got the wording wrong. The question says "selling price equal to the purchase price plus a markup that was 40% of the selling price"

Sale price (SP) = 150 + 40 % of SP

SP - .4*SP=150, or SP = 250. and therefore profit = 100.

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06 Sep 2005, 14:05
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