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

It is currently 22 May 2017, 19:10

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A merchant purchased a jacket for $60 and then determined

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
User avatar
Joined: 01 Nov 2010
Posts: 179
Location: Zürich, Switzerland
Followers: 2

Kudos [?]: 45 [0], given: 20

A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 06 Nov 2010, 14:32
7
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

59% (02:15) correct 41% (01:00) wrong based on 396 sessions

HideShow timer Statistics

A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?

(A) $0
(B) $3
(C) $4
(D) $12
(E) $15
[Reveal] Spoiler: OA

Last edited by Bunuel on 05 Feb 2012, 14:55, edited 1 time in total.
Edited the question and added the OA
1 KUDOS received
Manager
Manager
User avatar
Joined: 03 Sep 2010
Posts: 75
Location: Israel
GMAT 1: 660 Q47 V34
GMAT 2: 670 Q48 V34
GPA: 3.2
WE: Operations (Non-Profit and Government)
Followers: 3

Kudos [?]: 33 [1] , given: 2

Re: Profit from a Jacket [#permalink]

Show Tags

New post 06 Nov 2010, 14:38
1
This post received
KUDOS
60*1.25=75
75*0.8=60
60-60=0
the answer is A
Expert Post
9 KUDOS received
Math Expert
User avatar
P
Joined: 02 Sep 2009
Posts: 38798
Followers: 7714

Kudos [?]: 105782 [9] , given: 11581

Re: Profit from a Jacket [#permalink]

Show Tags

New post 06 Nov 2010, 21:34
9
This post received
KUDOS
Expert's post
5
This post was
BOOKMARKED
Sarang wrote:
A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?

(A) $0
(B) $3
(C) $4
(D) $12
(E) $15


No, answer A is not correct. Note that we are told that: "markup ... was 25 percent of the selling price".

Step by step:

Let the markup be \($x\), so \(x\) must be 25% of the selling price \(60+x\): \(x=0.25(60+x)\) --> \(x=20\) --> selling price will be \(60+20=80\).

The price after discount of 20% will be \(80*0.8=64\) --> gross profit on the sale will be final selling price - cost of the jacket = \($64 - $60 = $4\).

Answer: C.
_________________

New to the Math Forum?
Please read this: All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

SVP
SVP
avatar
Joined: 16 Nov 2010
Posts: 1666
Location: United States (IN)
Concentration: Strategy, Technology
Followers: 34

Kudos [?]: 533 [0], given: 36

Premium Member Reviews Badge
Re: A merchant purchased a jacket for $60 and then determined a selling pr [#permalink]

Show Tags

New post 02 Apr 2011, 07:40
Markup = x

x = 0.25(60 + x)

=> 3x/4 = 15

=> x = 20

So SP = 80

But Actual SP = 0.8 * 80 = 64

So profit = $4

Answer - C
_________________

Formula of Life -> Achievement/Potential = k * Happiness (where k is a constant)

GMAT Club Premium Membership - big benefits and savings

Manager
Manager
avatar
Joined: 03 Jun 2010
Posts: 181
Location: United States (MI)
Concentration: Marketing, General Management
WE: Business Development (Consumer Products)
Followers: 6

Kudos [?]: 69 [0], given: 40

GMAT ToolKit User Reviews Badge
Re: A merchant purchased a jacket for $60 and then determined a selling pr [#permalink]

Show Tags

New post 02 Apr 2011, 07:45
Acer86 wrote:
A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?
(A) $0
(B) $3
(C) $4
(D) $12
(E) $15


Selling price is sp, so
\(sp=60+0.25*sp\), where \(m*0.25\) is a markup
sp=80
Discounted the sp by 20% means \(sp-0.2sp=0.8sp\)
\(0.8sp=0.8*80=64\)
Gross profit = 64-purchase price = 64-60=4
(C)
Expert Post
Veritas Prep GMAT Instructor
User avatar
S
Joined: 16 Oct 2010
Posts: 7368
Location: Pune, India
Followers: 2281

Kudos [?]: 15075 [0], given: 224

Re: A merchant purchased a jacket for $60 and then determined a selling pr [#permalink]

Show Tags

New post 02 Apr 2011, 08:00
Acer86 wrote:
A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?
(A) $0
(B) $3
(C) $4
(D) $12
(E) $15


First of all, the question has very ambiguous language. They have to distinguish between marked price and selling price and they fail to do that. This is what the question needs to change:

A merchant purchased a jacket for $60 and then determined a mark-up price that equaled the purchase price of the jacket plus a markup that was 25 percent of the mark-up price. During a sale, the merchant discounted the mark-up price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?

Here, mark up was 25% of mark-up price so purchase price was 75% of mark-up price i.e. purchase price was increased by 33.33% to get mark up price (25 is 33.33% of 75)

\((1 + Mark Up%) * (1 - Discount%)= (1 + Profit%)\)
\((1 + \frac{1}{3})*(1- \frac{1}{5}) = (1 + Profit%)\)
\(Profit% = \frac{1}{15}\)
Hence you get a profit of $1 for every $15 of purchase price. Since purchase price is 4*15, profit will be 4.

For more on the formula and concept of Mark up, discount, check:
http://www.veritasprep.com/blog/2011/02 ... nt-profit/
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Director
Director
avatar
Joined: 01 Feb 2011
Posts: 755
Followers: 14

Kudos [?]: 124 [0], given: 42

Re: A merchant purchased a jacket for $60 and then determined a selling pr [#permalink]

Show Tags

New post 02 Apr 2011, 12:14
Actual Cost = $60
SP = Actual Cost + Mark up

= Actual Cost + 25% SP

= 60*100/75

on sale SP = 80/100(60*75/100) = 64

Gross profit = $4

Answer is C
Expert Post
4 KUDOS received
Magoosh Co-Founder
User avatar
Joined: 17 Sep 2011
Posts: 41
Schools: UC Berkeley (Haas) - Class of 2010
Followers: 28

Kudos [?]: 29 [4] , given: 12

Re: percentages [#permalink]

Show Tags

New post 11 Dec 2011, 21:50
4
This post received
KUDOS
Expert's post
This is a bit tricky, it's all in the details.

I suspect you read the question like this:
Merchant purchases jacket for $60
Merchant prices jacket at 25% more than purchase price. 20% more than $60 = $75
Merchant sells jacket at %20 off. 20% off of $75 = $60
Merchant makes $0 because he bought and sold at $60

But the question actually reads like this:
Merchant purchases jacket for $60
Merchant prices jacket at purchase price + 25% of selling price. Note the difference.

Let's break this down.
Selling price = purchase price + 25% of selling price
75% of Selling price = purchase price
Selling price = $60/75% = $80

Now we can finish the question...
Merchant sells jacket at %20 off. 20% off of $80 = $64
Merchant makes $4 because he bought at $60 and sold at $64.

I hope that helps!
_________________

Bhavin Parikh
Magoosh Test Prep

Image

Image

2 KUDOS received
Manager
Manager
avatar
Joined: 26 Apr 2011
Posts: 228
Followers: 2

Kudos [?]: 21 [2] , given: 14

GMAT ToolKit User Reviews Badge
Re: percentages [#permalink]

Show Tags

New post 11 Dec 2011, 22:38
2
This post received
KUDOS
OA is C
purchase price + 25% selling price= 100% selling price
60+ 25% SP= 100% SP
60= 75% SP

s0 100 % SP =80

now 20 % sale means 20 % of 80 = 16
so he sold the jacket at 80-16 = 64 $
total profit = 64-60 = 4 $
Senior Manager
Senior Manager
avatar
Joined: 18 Sep 2009
Posts: 356
Followers: 3

Kudos [?]: 488 [0], given: 2

Re: percentages [#permalink]

Show Tags

New post 12 Dec 2011, 09:41
1
This post was
BOOKMARKED
Let the cost price is C,selling price is S.
C=60.
S=C+0.25(S)
0.75(S)=C
3/4(S)=60
S=60*4/3=80.
seller gave a discount of 20% on selling price which is 80. 80*1/5=16(discount price)
Selling price -Discount price=80-16=64 (selling price after discount)
Gross profit= selling price after discount- cost price.=64-60=4
1 KUDOS received
SVP
SVP
User avatar
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1857
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Followers: 51

Kudos [?]: 2163 [1] , given: 193

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 25 Nov 2013, 23:03
1
This post received
KUDOS
Let selling price = x
So, x = 60 + 25x/100
Calculating above, x = 80
Selling price = 80

20% Discount on Selling price = 64
So, profit = 64-60 = 4 Answer = C
_________________

Kindly press "+1 Kudos" to appreciate :)

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 09 Sep 2013
Posts: 15380
Followers: 648

Kudos [?]: 204 [0], given: 0

Premium Member
Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 19 Feb 2015, 03:41
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

Manager
Manager
avatar
Joined: 14 Sep 2014
Posts: 94
WE: Engineering (Consulting)
Followers: 1

Kudos [?]: 29 [0], given: 51

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 18 Jul 2015, 01:39
SP = 60 + 0.25SP

SP = 80
20% discount
Discounted SP = 80 * 0.8 = 64

Profit = 4
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 09 Sep 2013
Posts: 15380
Followers: 648

Kudos [?]: 204 [0], given: 0

Premium Member
Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 20 Oct 2016, 00:08
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

Senior Manager
Senior Manager
User avatar
B
Status: DONE!
Joined: 05 Sep 2016
Posts: 409
Followers: 3

Kudos [?]: 16 [0], given: 283

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 06 Dec 2016, 20:09
PP = purchasing price
SP = selling price

PP=$60
SP=PP+0.25SP --> 0.75SP=0.60 -->SP=$80

20% off SP = 0.80(80) = $64 (price customer paid)

64-60 = $4 profit

C.
Intern
Intern
avatar
Joined: 03 Sep 2016
Posts: 3
Followers: 0

Kudos [?]: 0 [0], given: 17

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 15 May 2017, 22:28
hey, is this really 700+ level question in gmat?
Expert Post
Math Expert
User avatar
P
Joined: 02 Sep 2009
Posts: 38798
Followers: 7714

Kudos [?]: 105782 [0], given: 11581

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 15 May 2017, 23:10
Intern
Intern
avatar
Joined: 03 Sep 2016
Posts: 3
Followers: 0

Kudos [?]: 0 [0], given: 17

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 15 May 2017, 23:15
Bunuel wrote:
saarthak29 wrote:
hey, is this really 700+ level question in gmat?


The difficulty level is calculated automatically based on the timer stats from the users which attempted the question. So, yes it is a 700-level question.


hey, is it possible to send you private message?
Expert Post
Math Expert
User avatar
P
Joined: 02 Sep 2009
Posts: 38798
Followers: 7714

Kudos [?]: 105782 [0], given: 11581

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 15 May 2017, 23:18
saarthak29 wrote:
Bunuel wrote:
saarthak29 wrote:
hey, is this really 700+ level question in gmat?


The difficulty level is calculated automatically based on the timer stats from the users which attempted the question. So, yes it is a 700-level question.


hey, is it possible to send you private message?


If you have a question or query it's better to post directly on the forum.
_________________

New to the Math Forum?
Please read this: All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Expert Post
Target Test Prep Representative
User avatar
B
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 1026
Location: United States (CA)
Followers: 33

Kudos [?]: 527 [0], given: 2

Re: A merchant purchased a jacket for $60 and then determined [#permalink]

Show Tags

New post 19 May 2017, 06:20
Sarang wrote:
A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?

(A) $0
(B) $3
(C) $4
(D) $12
(E) $15


We are given that a jacket was purchased for 60 dollars. The jacket was sold for a price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. We can let the selling price = p, and thus the selling price is 60 + 0.25p. We can create the following equation and solve for p:

p = 60 + 0.25p

Multiply the equation by 4, we have:

4p = 240 + p

3p = 240

p = 80

Since the selling price was then discounted 20%, the discounted price was:

0.8(80) = 64

Thus, the profit on the sale was 64 - 60 = $4.

Answer: C
_________________

Scott Woodbury-Stewart
Founder and CEO

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Re: A merchant purchased a jacket for $60 and then determined   [#permalink] 19 May 2017, 06:20
    Similar topics Author Replies Last post
Similar
Topics:
1 A merchant prices a television at 60 percent above wholesale. For a Pr SajjadAhmad 3 13 May 2017, 04:02
1 Experts publish their posts in the topic Of the people who purchase a house, 60% considers the landscape and 80 MathRevolution 3 15 Mar 2017, 16:47
35 Experts publish their posts in the topic An electronics store purchased a CD player at a wholesale price of 60$ email2vm 23 12 Mar 2017, 12:01
3 Merchant Makes A Profit of 20% on Selling Price farukhawais 4 21 Jan 2017, 01:07
32 Experts publish their posts in the topic A merchant sells an item at a 20% discount, but still makes KillerSquirrel 17 04 Dec 2016, 21:38
Display posts from previous: Sort by

A merchant purchased a jacket for $60 and then determined

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.