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A particular store purchased a stock of turtleneck sweaters and marked

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

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New post 29 Feb 2016, 11:00
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Question Stats:

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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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Re: A particular store purchased a stock of turtleneck sweaters and marked [#permalink]

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New post 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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Re: A particular store purchased a stock of turtleneck sweaters and marked [#permalink]

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New post 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*.......
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Re: A particular store purchased a stock of turtleneck sweaters and marked [#permalink]

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New post 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”.

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Re: A particular store purchased a stock of turtleneck sweaters and marked [#permalink]

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New post 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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New post 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
Can you please explain the solution please.

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 \(\frac{(1.2 X + 0.25 X)*0.85}{x}*100 = 123.5\)

Please let me know where did i made the mistake ?

Regards
Dhruv
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A particular store purchased a stock of turtleneck sweaters and marked [#permalink]

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New post 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
Can you please explain the solution please.

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 \(\frac{(1.2 X + 0.25 X)*0.85}{x}*100 = 123.5\)

Please let me know where did i made the mistake ?

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 \(\frac{(1.2 X + 0.25(1.2X))*0.85}{x}*100 = 127.5\)

Hope this help you!
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A particular store purchased a stock of turtleneck sweaters and marked   [#permalink] 10 Feb 2018, 19:40
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