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

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

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06 May 2012, 10:53
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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 ##### Most Helpful Expert Reply Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 8195 Location: Pune, India Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 24 Jun 2012, 22:20 61 38 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/
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Save up to $1,000 on GMAT prep through 8/20! Learn more here > GMAT self-study has never been more personalized or more fun. Try ORION Free! ##### Most Helpful Community Reply Manager Status: mba here i come! Joined: 07 Aug 2011 Posts: 230 A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags Updated on: 25 Feb 2016, 08:28 98 27 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. suppose total cameras = 10 and each costs$10
total profit = $2*9 -$5*1 = $13 or 13% (with$100 cost)
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Originally posted by MBAhereIcome on 23 Jun 2012, 07:31.
Last edited by MBAhereIcome on 25 Feb 2016, 08:28, edited 1 time in total.
##### General Discussion
Math Expert
Joined: 02 Sep 2009
Posts: 48037
Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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06 May 2012, 11:07
25
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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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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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22 Jun 2012, 14:14
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%

Dear Bunuel,
Ths is a doubt i face with %ages, in ths quest too.
could you pls tell where i m going wrong?
when 20% mark up for initial cost is given , how to calculate it?
250 - 20/100*250 or to take if 120 is 250 then how much is 100?
how have you arrived at 1.2?
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Joined: 02 Sep 2009
Posts: 48037
Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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23 Jun 2012, 04:06
3
2
kashishh wrote:
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%

Dear Bunuel,
Ths is a doubt i face with %ages, in ths quest too.
could you pls tell where i m going wrong?
when 20% mark up for initial cost is given , how to calculate it?
250 - 20/100*250 or to take if 120 is 250 then how much is 100?
how have you arrived at 1.2?

If it's given that the selling price is $250 and the markup over the initial cost is 20%, then: {Cost}+0.2{Cost}=1.2*{Cost}={Selling price} --> 1.2*{Cost}=$250 --> {Cost}=$250/1.2. Hope it's clear. _________________ Intern Joined: 28 Feb 2012 Posts: 21 GMAT 1: 700 Q48 V39 WE: Information Technology (Computer Software) Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 24 Jun 2012, 02:06 1 MBAhereIcome wrote: 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. suppose total cameras = 10, out of which 9 gave 20% profit suppose 100 was the cost of each. total profit 100*10=1000 profit from 9 = 20*9 = 180 loss from 1 = 50*1 = 50 total profit = 180-50 = 130 so, 130 profit from a cost of 1000. that is 13% profit. Your method seems easy, but I kind of got lost with this - 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. Could you please explain, how you deduced this? Thanks. Manager Joined: 02 Jun 2011 Posts: 132 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 24 Jun 2012, 12:26 1 2 gmatDeep wrote: MBAhereIcome wrote: 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. suppose total cameras = 10, out of which 9 gave 20% profit suppose 100 was the cost of each. total profit 100*10=1000 profit from 9 = 20*9 = 180 loss from 1 = 50*1 = 50 total profit = 180-50 = 130 so, 130 profit from a cost of 1000. that is 13% profit. Your method seems easy, but I kind of got lost with this - 54 cameras gave 20% profit while 6 incurred 50% loss. or out of 10, 9 gave profit. Could you please explain, how you deduced this? Thanks. yess.. 54:6 = 9:1 mark up is of 20% = profit earned will be 20% VP Joined: 02 Jul 2012 Posts: 1192 Location: India Concentration: Strategy GMAT 1: 740 Q49 V42 GPA: 3.8 WE: Engineering (Energy and Utilities) Re: Of the cameras ordered, 6 were never sold and were returned [#permalink] ### Show Tags 16 Nov 2012, 23:15 15 4 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.

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Re: Of the cameras ordered, 6 were never sold and were returned  [#permalink]

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16 Nov 2012, 23:27
1
60 cameras were ordered to be sold at a 20% markup for $250 each => Dealer's cost for each camera =$208
=> Cost of all 60 cameras = $60*208 6 cameras were not sold and returned for a refund of 50% of the dealer's cost => The amount the dealer got in returns = 50% of 6*208 =$624
The rest of the cameras (60-6 = 54 in number) were sold
=> Revenue made from selling the cameras = $54 * 250 For the 60 cameras, dealer's profit = 100* [54*(250-208) + (624-1248)]/[(60*200)] =100* (14100-12000)/12000 = ~13% (the error arises because 250/1.2 is not exactly 208 but 208.33) Option (D) _________________ GyanOne | Top MBA Rankings and MBA Admissions Blog Top MBA Admissions Consulting | Top MiM Admissions Consulting Premium MBA Essay Review|Best MBA Interview Preparation|Exclusive GMAT coaching Get a FREE Detailed MBA Profile Evaluation | Call us now +91 98998 31738 Director Status: Done with formalities.. and back.. Joined: 15 Sep 2012 Posts: 616 Location: India Concentration: Strategy, General Management Schools: Olin - Wash U - Class of 2015 WE: Information Technology (Computer Software) Re: Of the cameras ordered, 6 were never sold and were returned [#permalink] ### Show Tags 16 Nov 2012, 23:48 24 13 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

actually, if one could visualize this problem properly, it could be solved in less than 30 secs without getting into any dirty calculations.
Here is my 30 sec approach:
Notice that it is actually a wighted ratio problem, where 9 parts earned 20% profit and 1 part earned 50% loss. (54 for profit, 6 for loss).
Hence overall profit/loss = $$(9*20 -1*50) /(9+1) = 13$$
Ans D it is!
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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24 Nov 2012, 11:16
2
Hi,

For those using normal way to solve this problem, I think that we can avoid huge calculation by just replace Cost by letter C and put it in the final formula:
Income: 54*1.2C + 6*0.5C
Cost: 60*C
Then percent =(Income-cost)/cost = (54*1.2C + 6*0.5C - 60*C)/60*C. We can see that we can eliminate C from the fraction --> percent = (54*1.2 + 6*0.5 - 60)/60 = (54*1.2 + 6*0.5)/60 - 1. Here, we can see clearly the weighted average part of the problem or we can simply calculate the fraction to reach the result.
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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27 May 2013, 12:12
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%

this must be kind of awkward question but i got no option other than asking you.

20% markup over the dealer’s initial cost for each camera- I made a wrong assumption , but reducing 20%from 250 & got 200 as an initial cost for each. please explain that "Total cost 60*($250/1.2)=50*250;" Math Expert Joined: 02 Sep 2009 Posts: 48037 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 27 May 2013, 12:19 3 1 FTGNGU wrote: 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% Answer: D. this must be kind of awkward question but i got no option other than asking you. 20% markup over the dealer’s initial cost for each camera- I made a wrong assumption , but reducing 20%from 250 & got 200 as an initial cost for each. please explain that "Total cost 60*($250/1.2)=50*250;"

(Cost per unit) + 0.2*(Cost per unit) = $250 1.2*(Cost per unit) =$250
(Cost per unit) = $250/1.2 Total cost for 60 units = 60*(Cost per unit) = 60*($250/1.2) = 50*250.

Hope it's clear.
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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07 Apr 2014, 19:23
4
Because the answers are in percentages, I thought not to worry about the $amounts and just focus on the relationships: Let C be the total cost of all 60 cameras. Originally, the dealer thought to sell all these 60 cameras at 20% profit or for (1.2)C. However, he sold only (60-6)=54 or 90% of cameras at this price. So revenue from these cameras = (0.9)(1.2)C = (1.08)C For the remaining 10%, he got a refund of 50% of cost or (0.5)C. So total refund = (0.1)(0.5)C = (0.05)C Therefore, total revenue in terms of original cost = (1.08 + 0.05)C = 1.13C or 13% profit. So D is the correct ans. Intern Status: 1st attempt: Can I do it? Joined: 09 Jun 2013 Posts: 1 Location: India Concentration: Healthcare, Marketing GMAT Date: 05-30-2014 GPA: 2.99 WE: Pharmaceuticals (Pharmaceuticals and Biotech) Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 27 May 2014, 10:33 2 1 {(54*20) + (6*(-50))}/ 60 This gives 13% profit as answer. 20% proft on 54 cameras and 50% loss on 6 cameras. Use weighted averages here. Rest of the information in the question is misguiding. Intern Joined: 09 Feb 2013 Posts: 26 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 29 Jun 2014, 23:52 My soln is : Dealer's per unit initial cost =250 -20/100*250 = 200 Total initial cost = 60*200=12000 Total profit = (54*250+6*100) - 12000 = 2100 Profit % as a percent of dealer's initial cost = 2100/12000*100 = 17.5 % Can you please tell me where I went wrong ? Posted from my mobile device Math Expert Joined: 02 Sep 2009 Posts: 48037 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 30 Jun 2014, 02:50 kshitij89 wrote: My soln is : Dealer's per unit initial cost =250 -20/100*250 = 200 Total initial cost = 60*200=12000 Total profit = (54*250+6*100) - 12000 = 2100 Profit % as a percent of dealer's initial cost = 2100/12000*100 = 17.5 % Can you please tell me where I went wrong ? Posted from my mobile device The cost per unit is not 0.8*250 = 200, it's 250/1.2 = ~208. Markup is calculated on the cost value (check here: http://gmatclub.com/forum/a-photography ... l#p1229596). Hope it helps. _________________ Manager Joined: 28 Dec 2013 Posts: 68 Re: A photography dealer ordered 60 Model X cameras to be sold [#permalink] ### Show Tags 21 Aug 2014, 08:48 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?
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Re: A photography dealer ordered 60 Model X cameras to be sold  [#permalink]

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24 Aug 2014, 21:54
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? Weighted Average Formula: Cavg = (C1*w1 + C2*w2)/(w1 + w2) C1 and C2 represent the quantity which we want to average so they will be profit/loss here. C1 = 20% = .2 C2 = -50% (loss) = -.5 The weights, given by w1 and w2, are the cost prices. Cost Price of 54 cameras:cost price of 6 cameras = 54:6 = 9:1 So w1 =9 and w2 = 1 Avg Profit/Loss = (.2*9 + (-.5)*1)/(9 + 1) = (.2*9 + (-.5)*1)/10 Get more details on this concept from the link given in my post above. _________________ Karishma Veritas Prep GMAT Instructor Save up to$1,000 on GMAT prep through 8/20! Learn more here >

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Re: A photography dealer ordered 60 Model X cameras to be sold &nbs [#permalink] 24 Aug 2014, 21:54

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