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Senior Manager  Status: Math is psycho-logical
Joined: 07 Apr 2014
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GMAT Date: 02-11-2015
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A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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For those that get confused with the word "markup", I read it as increase.

So, in this sense it is calculated like this:
250*60=x + 0.20(x), # of cameras bought by cost for each is a 20% increase over the initial cost (x).
250*60=1.20x
15000=1.20x
12500=x. And this is how you get to the cost.

The revenue for the cameras is the # of cameras sold by the price for each:
54*250=13500.

6 of these cameras were returned and the amount the dealer received was 50% less than what he paid for them:
12500/60= 208 (about). This is the cost for each of the 60 cameras. 208*6=1248 (about), and this is the cost for the 6 cameras. Now, the dealer gave these 6 cameras back for 50% of the price he got them for: 1248 - 0.50(1248) = 624. So, he lost 624 and was left with 624.

12500 = cost
13500 = revenue
624 = revenue from the 6 cameras
14124 = total revenue

The question asks for the ratio of profit over cost. Profit means: revenue - cost. Then we have:
(14125-12500)/12500 = 13. ANS D
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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Suppose: what if I want to calculate the number of the total profit first. How can I get it? I tried to get it by "54^250/1.2. Is this is the correct way? Pls enlighten. Thanks in advance.
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A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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1
Andrewbpaa wrote:
Suppose: what if I want to calculate the number of the total profit first. How can I get it? I tried to get it by "54^250/1.2. Is this is the correct way? Pls enlighten. Thanks in advance.

Hi Andrewbpaa,

For calculating the total net profit, you would need to know the cost price and the selling price of all the 60 cameras:

On a selling price of $250, the dealer makes a profit of 20%. So, his cost price for 1 camera would be $$= \frac{250}{1.20}$$ His refund price for 6 cameras is 50% of his cost price i.e. $$0.5* \frac{250}{1.20}$$ I. Profit from selling 54 cameras at$250 each$$= 54 * (  250 - \frac{ 250}{1.20})$$
II. Loss from refund of 6 cameras = $$6 *( \frac{250}{1.20} - \frac{ 250}{1.20} * 0.50)$$ $$= 6*( \frac{250}{1.20} * 0.50)$$

Adding I & II would give you the total net profit the dealer made on the 60 cameras. The net profit can then be divided by the total cost price of 60 cameras to arrive at the total profit% of the dealer.

However, I would suggest you use weighted average method to solve the question.

Points to Note
In such questions, it pays to be careful about the concept of markup% and discount%. In this question, there was no discount offered, hence the markup price and selling price were the same i.e. $250. Had there been a discount of lets say 10%, the selling price would have been $$250* 0.9 = 225$$. The profit then would have been equal to $$225 - \frac{ 250}{1.20}$$ Please remember that the markup% is calculated on the cost price while the discount % is calculated on the markup price. Given below are few questions on discount & markup for your practice: if-the-original-price-of-an-item-in-a-retail-store-is-marked-163706.html?hilit=discount a-pair-of-skis-originally-cost-160-after-discount-of-x-149918.html a-jewelry-dealer-initially-offered-a-bracelet-for-sale-at-an-8215.html?hilit=discount%20&%20markup henry-purchased-three-items-during-a-sale-he-received-a-20-discount-194280.html?hilit=discount Hope its clear! Regards Harsh _________________ Intern  Joined: 16 Aug 2015 Posts: 20 Location: India Concentration: General Management, Entrepreneurship GMAT 1: 510 Q22 V19 GPA: 3.41 A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags A big question I have is, why does following method give different answer though I believe there is no flaw in my method of attempting this problem - Purchase price per camera = 250/1.2 = 1250/6. Total purchase price = 60 * 1250/6 = 12500$

Got return money because of 6 cameras which were returned = 50% of 6 = [(6 * 250/1.2)/2] = 625$Effective purchase price = 12500 - 625 = 11875$

Total sale = 54 * 250 = 13500$. Hence % profit = [(Total sale - effective purchase price) / (effective purchase price)] x 100 = [(13500 - 11875) / 11875] x 100 = (1625/11875) x 100 = 13.684 Ans. Dealer paid total cost of 60 cameras and then I deducted 50% cost of 6 cameras from that instead of adding it as a revenue. So in this case, technically 54 cameras have been sold and 57 were bought. Can anyone explain why can't I do that way? TIA Veritas Prep GMAT Instructor V Joined: 16 Oct 2010 Posts: 10113 Location: Pune, India Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 1 bablu1234 wrote: A big question I have is, why does following method give different answer though I believe there is no flaw in my method of attempting this problem - Purchase price per camera = 250/1.2 = 1250/6. Total purchase price = 60 * 1250/6 = 12500$

Got return money because of 6 cameras which were returned = 50% of 6 = [(6 * 250/1.2)/2] = 625$Effective purchase price = 12500 - 625 = 11875$

Total sale = 54 * 250 = 13500$. Hence % profit = [(Total sale - effective purchase price) / (effective purchase price)] x 100 = [(13500 - 11875) / 11875] x 100 = (1625/11875) x 100 = 13.684 Ans. Dealer paid total cost of 60 cameras and then I deducted 50% cost of 6 cameras from that instead of adding it as a revenue. So in this case, technically 54 cameras have been sold and 57 were bought. Can anyone explain why can't I do that way? TIA You have assumed the situation to be a bit different from what it actually is. You have assumed that he bought 54 cameras at 250/1.2 each and 6 cameras at 125/1.2 each. Then he sold 54 cameras at 250 each and 6 cameras at 0. While actually this is the situation: He bought 60 cameras at 250/1.2 each. He sold 54 at 250 each and sold the rest of the 6 at 125/1.2 each. The difference (Revenue - Cost) in both cases will be the same but the cost price in the denominator will be different. So profit % obtained will be different. Please check Bunuel's solution on Page 1 to see the actual calculations of this method. _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > Veritas Prep GMAT Instructor V Joined: 16 Oct 2010 Posts: 10113 Location: Pune, India Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags bablu1234 wrote: Thanks, I understood what you mean. >>He bought 60 cameras at 250/1.2 each. >>He sold 54 at 250 each and sold the rest of the 6 at 125/1.2 each. From lines above, one can also assume that 57 Cameras were bought and 57 were sold. Total purchase price = 57 * 1250/6 = 11875 Total sale = 57 * 250 = 14250 That gives 20%. Don't take it otherwise about dragging but I am trying to understand, with similar questions, I can think or assume differently during the real test due to pressure of time. All I can say is that you have to carefully consider what the cost price is and what the selling price is. _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > Veritas Prep GMAT Instructor V Joined: 16 Oct 2010 Posts: 10113 Location: Pune, India Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 1 sagnik242 wrote: VeritasPrepKarishma wrote: pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Use weighted avgs for a quick solution:

On 54 cameras, the dealer made a 20% profit and on 6 cameras, he made a 50% loss. Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1

Avg Profit/Loss = (.2*9 + (-.5)*1)/10 = 1.3/10 = .13 = 13% profit

For more on weighted avgs, check: http://www.veritasprep.com/blog/2011/03 ... -averages/

why are we dividing by 10?

The weights are 54 (20% profit on 54 cameras) and 6 (50% loss on 6 cameras).
This is a ratio of 54:6 = 9:1 (in lowest terms). It is the same thing whether you use 54 and 6 as weights or 9 and 1 but 9 and 1 simplify the calculations.

Avg = (A1 * w1 + A2 * w2)/(w1 + w2) = (A1 * 9 + A2 * 1)/(9 + 1) = (A1 * 9 + A2 * 1)/10
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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Does this question bother anyone else in formatting terms? Perhaps I'm misinterpreting, but let me explain:

"What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?"

Profit = Revenue - Costs

Thus, the question is looking for (Revenue - Cost) / Cost

In number terms this would look like, [54*(250) + 6*(250)*(4/5)*(1/2) - 600*(250)*(4/5)]/[(60)*(250)*(4/5)]x100 ~~ 10.7%

I'd appreciate any help in clearing up this misunderstanding!
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Joined: 16 Oct 2010
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Location: Pune, India
Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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1
philipb wrote:
Does this question bother anyone else in formatting terms? Perhaps I'm misinterpreting, but let me explain:

"What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?"

Profit = Revenue - Costs

Thus, the question is looking for (Revenue - Cost) / Cost

In number terms this would look like, [54*(250) + 6*(250)*(4/5)*(1/2) - 600*(250)*(4/5)]/[(60)*(250)*(4/5)]x100 ~~ 10.7%

I'd appreciate any help in clearing up this misunderstanding!

You are correct conceptually.

The error lies here:

"$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera." Marked price is 250 This is a 20% markup on cost. Cost * (1 + 20/100) = Marked price Cost * (6/5) = Marked Price Cost = (5/6) * 250 You have taken this to be (4/5)*250. Replace it by (5/6) and you should get the correct answer. _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > Intern  B Joined: 08 Feb 2015 Posts: 20 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 1 Two words: "weighted average" [ 1.2(54) + 0.5(6) ] / 60 = 67.8 / 60 = 1.13. Hence, 13% profit. Manager  Joined: 18 Feb 2015 Posts: 79 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags MacFauz wrote: carcass wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, whichrepresents a 20 percent markup over the dealer's initialcost for each camera.
Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?

(A) 7% loss

(B) 13% loss

(C) 7% profit

(D) 13% profit

(E) 15% profit

have fun. is not difficult to conceptualize but is difficult because if you are not organized and clear you are get in trouble.

I would not show the OA but the rules are stringent. either way try on your own Cost to dealer for 60 cameras = $$\frac{250}{1.2}*60$$ = $12,500 Revenue for 54 cameras = 54*250 =$13,500

Revenue from 6 cameras = $$\frac{250}{2.4}*6$$ = $625 Total Revenue =$14,125

Profit percent = $$\frac{14125-12500}{12500}$$ = 13%

Otherwise, If one were short on time and I had to guess, One can eliminate A,B & C by looking at the problem itself and improve my chances of guessing the right answer to 50% between D & E.

Kudos Please... If my post helped.

Hey all,
Why do we divide 250/2.4? Where does 2.4 come from?
Thanks!
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A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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HarveyKlaus wrote:
MacFauz wrote:
carcass wrote:
A photography dealer ordered 60 Model X cameras to be sold for$250 each, whichrepresents a 20 percent markup over the dealer's initialcost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras? (A) 7% loss (B) 13% loss (C) 7% profit (D) 13% profit (E) 15% profit have fun. is not difficult to conceptualize but is difficult because if you are not organized and clear you are get in trouble. I would not show the OA but the rules are stringent. either way try on your own Cost to dealer for 60 cameras = $$\frac{250}{1.2}*60$$ =$12,500

Revenue for 54 cameras = 54*250 = $13,500 Revenue from 6 cameras = $$\frac{250}{2.4}*6$$ =$625

Total Revenue = $14,125 Profit percent = $$\frac{14125-12500}{12500}$$ = 13% Answer is D. Otherwise, If one were short on time and I had to guess, One can eliminate A,B & C by looking at the problem itself and improve my chances of guessing the right answer to 50% between D & E. Kudos Please... If my post helped. Hey all, Why do we divide 250/2.4? Where does 2.4 come from? Thanks! Cost to dealer = 250/1.2 (because 250 is the selling price which 20% markup) Revenue from the 6 cameras is half the cost price. This is = (250/1.2)*(1/2) = 250/2.4 P.S. - Saw your post later Engr2012 _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > Veritas Prep GMAT Instructor V Joined: 16 Oct 2010 Posts: 10113 Location: Pune, India Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags vaidhaichaturvedi wrote: VeritasPrepKarishma wrote: pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Use weighted avgs for a quick solution:

On 54 cameras, the dealer made a 20% profit and on 6 cameras, he made a 50% loss. Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1

Avg Profit/Loss = (.2*9 + (-.5)*1)/10 = 1.3/10 = .13 = 13% profit

For more on weighted avgs, check: http://www.veritasprep.com/blog/2011/03 ... -averages/

Hi Karishma,

Could you please explain me why there is negative sign,as in Weightage average problem has + sign in its formula. or whenever there is loss we have to take - sign in formula in numerator

I may sound silly but kindly explain me.

Thanks

Yes, loss and discount take negative signs.
Think about it - If you have two profits, one of 20% and the other of 5%, you will use
(.2*9 + .5*1)/10

But you actually have a profit of 20% and a loss of 5%. How will you depict the loss? With a negative sign because it reduces the cost price.
(.2*9 + (-.5)*1)/10
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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2
pgmat wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras? A. 7% loss B. 13% loss C. 7% profit D. 13% profit E. 15% profit We are given that a dealer ordered 60 cameras to be sold for$250 each. This is a 20% markup over the initial cost to the dealer. We can use this to determine the initial cost to the dealer.

We can let C = dealer’s cost per camera. So,

1.2C = 250

12C = 2,500

C ≈ 210

Thus, we have an approximate cost of $210 per camera. We are next given that 6 cameras were never sold and were returned to the manufacturer for a refund of 50 percent of the dealers cost. Since the approximate cost was$210 per camera, the dealer received a $105 refund per camera, or$630 total. We can now calculate the total cost of the cameras to the dealer as:

Cost = $210 x 60 –$630

Cost = $12,600 –$630

Cost = $11,970 Next, we need to determine the revenue. We know that the dealer sold 54 cameras for$250 each. So total revenue is:

Revenue = 54 x $250 =$13,500

Since profit = revenue – cost, profit = $13,500 –$11,970 = $1,530 Finally we need to determine the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras. (Profit/initial cost) x 100 1,530/12,600 x 100 153/1260 x 100 This is roughly equal to: 150/1200 x 100 15/120 x 100 1/8 x 100 = 12.5% profit The closest answer is answer choice D, 13% profit. _________________ # Jeffrey Miller Head of GMAT Instruction Jeff@TargetTestPrep.com See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews If you find one of my posts helpful, please take a moment to click on the "Kudos" button. Board of Directors D Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 4841 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

Cp of 60 cameras = 250*60/120*100 => 12500
CP of 6 cameras = 1250

6 were returned at 50% of CP, so amount received from return= 625

Net CP of 54 Cameras = Cp of 60 cameras - Amount received from return

Net CP of 54 Cameras = 12500 - 625 = 11875

SP of 54 cameras = 250*54 = 13500

So, Profit Percentage = $$\frac{( 13500 - 11875 )}{11875} *100$$ ~ 13%

Hence correct answer must be (D)

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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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Bunuel,

I did not understand this solution at all.
60 Cameras were ordered
Markup on CP was 20% Hence Profit would be 20%)
6 Were Returned at 50%, Hence There was a Loss of 50% on 6 Cameras, So the Profit was 20% on 54 Cameras and Loss of 50% on 6 Cameras

Bunuel wrote:
pgmat wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras? A. 7% loss B. 13% loss C. 7% profit D. 13% profit E. 15% profit Total cost 60*($250/1.2)=50*250;

# of cameras sold is 60-6=54 total revenue is 54*250;
# of cameras returned is 6 total refund 6*(250/1.2)*0.5;
So, total income 54*250+ 6*(250/1.2)*0.5

The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13%

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A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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aayushamj wrote:
Bunuel,

I did not understand this solution at all.
60 Cameras were ordered
Markup on CP was 20% Hence Profit would be 20%)
6 Were Returned at 50%, Hence There was a Loss of 50% on 6 Cameras, So the Profit was 20% on 54 Cameras and Loss of 50% on 6 Cameras

Bunuel wrote:
pgmat wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras? A. 7% loss B. 13% loss C. 7% profit D. 13% profit E. 15% profit Total cost 60*($250/1.2)=50*250;

# of cameras sold is 60-6=54 total revenue is 54*250;
# of cameras returned is 6 total refund 6*(250/1.2)*0.5;
So, total income 54*250+ 6*(250/1.2)*0.5

The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13%

Hi aayushamj,

Given Marked price = CP + 20%of CP = CP + 0.2CP = 1.2CP = $250 => CP =$250/1.2

Total cost price = (60*250)/1.2 = 50*250 = $12500 The selling price has two components: Cameras sold and Cameras returned. Revenue from cameras sold = 54*250 = 13500 Quote: 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. Please note that initial cost of each camera is same as CP, i.e.$250/1.2
Revenue from cameras returned =$$\frac{6\times 250 \times 0.5}{1.2}$$ = $625 Total income = 13500 + 625 =$14125

Profit = 14125 - 12500 = $1625 Profit percentage = 1625*100/12500 = 13 %. Hope this helps. Manager  S Status: active Joined: 25 Jan 2016 Posts: 124 Location: India Concentration: Finance, Entrepreneurship GPA: 4 WE: Web Development (Computer Software) Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 1 Cost of each camera would be$250/1.2 =$208.33 total cost of 60 cameras would be 60*$208.33 $12500 Actual number of cameras sold is 6 less i.e 54 revenue generated 54*250 no of cameras returned 6 so refund cost is$6*208.3*50%
So, total income 54*250+ 6*($208.33)*50% The dealer's approximate profit is (54*250+ 6*($208.33)*0.5-50*250)/(50*250)*100=13%
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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VeritasPrepKarishma wrote:
pgmat wrote:
A photography dealer ordered 60 Model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras? A. 7% loss B. 13% loss C. 7% profit D. 13% profit E. 15% profit Use weighted avgs for a quick solution: On 54 cameras, the dealer made a 20% profit and on 6 cameras, he made a 50% loss. Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1 Avg Profit/Loss = (.2*9 + (-.5)*1)/10 = 1.3/10 = .13 = 13% profit For more on weighted avgs, check: http://www.veritasprep.com/blog/2011/03 ... -averages/ VeritasPrepKarishma, I think you method is pretty sweet - I just used another weighted average looking formula you shared in your blog: $$\cfrac { w1 }{ w2 } :=\cfrac { \left( A2-Aavg \right) }{ \left( Aavg-A1 \right) } =\\ =\cfrac { 1 }{ 9 } =\cfrac { \left( 1.2-Aavg \right) }{ \left( Aavg-0.5 \right) } \\ =Aavg-0.5=9\left( 1.2-Aavg \right) \\ =Aavg-0.5=10.8-9Avg\\ =Aavg+9Aavg=10.8+0.5\\ =10Aavg=11.3\\ =Aavg=\cfrac { 11.3 }{ 10 } \\ Aavg=1.13$$ 13% profit I'm a big fan of the scaled method but I can't figure out how to set it up as to find the 'combined average'. _________________ "When the going gets tough, the tough gets going!" |Welcoming tips/suggestions/advices (you name it) to help me achieve a 600| GMAT Club Legend  V Joined: 11 Sep 2015 Posts: 4337 Location: Canada Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 2 Top Contributor pgmat wrote: A photography dealer ordered 60 Model X cameras to be sold for$250 each, which represents a 20 percent markup over the dealer’s initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer’s initial cost for the 60 cameras?

A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit

It's important to recognize that we really don't need to use the information about the cameras selling for $250 each. The question boils down to . . . 54 cameras were sold at a 20% markup, and 6 cameras were (essentially) sold at a 50% markdown. What was the approximate profit or loss as a percent of the dealer’s initial cost for all 60 cameras? So, we can assign A NICE value of$100 to the initial cost per camera.
This means the 60 cameras cost $6000 to buy. 54 cameras were sold at a 20% markup and 6 cameras were sold at a 50% markdown. So, 54 cameras were sold for$120, and 6 cameras were sold for $50. (54)($120) + (6)($50) =$6780
So, the cameras were sold for $6780 This represents a profit of$780 (eliminate A and B)

If the initial cost was $6000, we must determine the percentage equivalent to$780/$6000$780/\$6000 = 78/600 = 13/100 = 13%

Cheers,
Brent
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