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# A particular store purchased a stock of turtleneck sweaters and marked

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Math Expert
Joined: 02 Sep 2009
Posts: 49251
A particular store purchased a stock of turtleneck sweaters and marked  [#permalink]

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29 Feb 2016, 11:00
00:00

Difficulty:

25% (medium)

Question Stats:

83% (01:28) correct 17% (01:35) wrong based on 112 sessions

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A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

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Senior Manager
Joined: 20 Aug 2015
Posts: 392
Location: India
GMAT 1: 760 Q50 V44
Re: A particular store purchased a stock of turtleneck sweaters and marked  [#permalink]

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01 Mar 2016, 05:01
Bunuel wrote:
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x
Hence total profit = 27.5%
Option A
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Joined: 30 Jul 2014
Posts: 6
Re: A particular store purchased a stock of turtleneck sweaters and marked  [#permalink]

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10 Jan 2018, 20:41
TeamGMATIFY wrote:
Bunuel wrote:
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x
Hence total profit = 27.5%
Option A

Hi
I understood the logic but I would like to know if there is an approach to make your fraction multiplication quicker. I struggle with multiplying and deriving answer in case of successive percentages like 1.07*.85*.55*.......
Senior Manager
Joined: 17 Oct 2016
Posts: 323
Location: India
Concentration: Operations, Strategy
GPA: 3.73
WE: Design (Real Estate)
Re: A particular store purchased a stock of turtleneck sweaters and marked  [#permalink]

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10 Jan 2018, 20:54
prateetchhatwal wrote:
TeamGMATIFY wrote:
Bunuel wrote:
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x
Hence total profit = 27.5%
Option A

Hi
I understood the logic but I would like to know if there is an approach to make your fraction multiplication quicker. I struggle with multiplying and deriving answer in case of successive percentages like 1.07*.85*.55*.......

Hello,

You can solve by using the fractions as they are.

For example in this case 25% increase of 120 is 120*125/100. You can cancel out 125/100 as 5/4. Then you can easily find it as 150.
Similarly for 85% of 150 you can do 150*85/100. Here you can cancel out 150/100 as 3/2. Then 85*3=255 and half of it will be 127.5.
This is how I do. Hope it helps you too. Most of the time this method works. But when GMAT wants to eat our time by making us to multiply unwanted decimals “god help us”.

Posted from my mobile device
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Joined: 12 Dec 2016
Posts: 1798
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
Re: A particular store purchased a stock of turtleneck sweaters and marked  [#permalink]

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10 Jan 2018, 23:00
TeamGMATIFY wrote:
Bunuel wrote:
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x

Hence total profit = 27.5%
Option A

you actually can replace x with 1. Also, instead of calculate the number, you can leave the calculation in fractions. The answer is 11 / 40 => A b/c 0.25 < 11/40 < 0.33
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Re: A particular store purchased a stock of turtleneck sweaters and marked  [#permalink]

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09 Feb 2018, 11:26
Bunuel wrote:
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Bunuel

I am a bit confused by the wording in the question.
It says "it further marked up its prices by 25% of the original retail price"

So shouldn't the equation be $$\frac{(1.2 X + 0.25 X)*0.85}{x}*100 = 123.5$$

Regards
Dhruv
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Joined: 26 Feb 2016
Posts: 3131
Location: India
GPA: 3.12
A particular store purchased a stock of turtleneck sweaters and marked  [#permalink]

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10 Feb 2018, 19:40
DhruvPatelD10 wrote:
Bunuel wrote:
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Bunuel

I am a bit confused by the wording in the question.
It says "it further marked up its prices by 25% of the original retail price"

So shouldn't the equation be $$\frac{(1.2 X + 0.25 X)*0.85}{x}*100 = 123.5$$

Regards
Dhruv

Hey DhruvPatelD10

Assume the cost of the item to be $100. When the product was initially marked up by 20%, the MRP on the product became 1.2*$100 = $120. Again when this price was marked up by 25%, this time around the MRP was marked up. So, the final value became 1.25*$120 = \$150

To put it into perspective in the equation that you have written,

the equation should be $$\frac{(1.2 X + 0.25(1.2X))*0.85}{x}*100 = 127.5$$

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