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A man cheats while buying as well as while selling. While

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Joined: 06 Jun 2012
Posts: 65
GMAT Date: 11-01-2012
Re: A man cheats while buying as well as while selling. While [#permalink]

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New post 01 Mar 2017, 18:02
VeritasPrepKarishma wrote:
There is a one step calculation method too. It requires more thought but is faster.
The man takes 10% more than what he pays for. So if he claims to take 100 pounds, he pays $100 but he actually takes 110 pounds for which he will take from the customer $110. Hence, in effect, there is a 10% mark up.
While selling, he sells 20% less. This means, he claims to sell 100 pounds and gets $100 but actually sells only 80 pounds and should have got only $80 for it. So this is again a mark up of $20 on $80 which is 25%.
But he also sells at 9.09% less i.e. gives a discount of 1/11.

(1 + m1%)(1 + m2%)(1 - d%) = (1 + p%)
11/10 * 5/4 * 10/11 = (1 + p%)
profit % = 25%

To understand this formula, see: http://www.veritasprep.com/blog/2011/02 ... nt-profit/

Lovely way to solve... Thanks for the formula
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Re: A man cheats while buying as well as while selling. While [#permalink]

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New post 26 May 2017, 00:31
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VeritasPrepKarishma wrote:
There is a one step calculation method too. It requires more thought but is faster.
The man takes 10% more than what he pays for. So if he claims to take 100 pounds, he pays $100 but he actually takes 110 pounds for which he will take from the customer $110. Hence, in effect, there is a 10% mark up.
While selling, he sells 20% less. This means, he claims to sell 100 pounds and gets $100 but actually sells only 80 pounds and should have got only $80 for it. So this is again a mark up of $20 on $80 which is 25%.
But he also sells at 9.09% less i.e. gives a discount of 1/11.

(1 + m1%)(1 + m2%)(1 - d%) = (1 + p%)
11/10 * 5/4 * 10/11 = (1 + p%)
profit % = 25%

To understand this formula, see: http://www.veritasprep.com/blog/2011/02 ... nt-profit/


Responding to a pm:
Quote:
can u please clear me ..what if the question will ask for his Profit/loss percent"??

ie how can we know whether he is finally at profit or loss so that we have RHS part as (1+p%)


In case there is a loss, you will simply get a negative value for p.

(1 + m%)(1 - d%) = (1 + p%)

Say there is a mark up of 10% but a discount is given of 20%.

(1 + 10/100)*(1 - 20/100) = (1 + p%)

(11/10) * (4/5) = (1 + p%)

44/50 = 88/100 = 1 + p/100

p/100 = -12/100

p = -12
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Re: A man cheats while buying as well as while selling. While   [#permalink] 26 May 2017, 00:31

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