A retailer bought a machine at a wholesale price of $90 and

I guess it should say wholesale price rather than 'whole price'

My solution: Wholesale Price= 90
Retail Price, be = x
He provides 10 % discount on Retail price= x-10x/100
This Retail price = 20 % profit on Wholesale price
x-10x/100 = 90+ 1/5(90)
x=120

First find the sale price. Profit is 20% so sale price is 1.2*90 = $108. Then, use POE on the answer choices, see which answer choices yields 108 when you subtract 10% of it. 120 - 12 = 108. Answer C it is.

Hi All,

Many Test Takers would take an Algebraic approach to this prompt (which is fine). Since the answers ARE numbers, and the question asks for the retail price of the machine, we can TEST THE ANSWERS.

From the prompt, we're given a number of Facts:
1) A machine was purchased at a wholesale price of $90
2) It was sold after a 10% discount to the RETAIL price
3) The profit on the sale was 20% of the WHOLESALE price

We're asked to find the retail price of the machine.

Since the wholesale price was $90 and the profit was 20% of the wholesale price ([.2][90] = $18), the retail price would have to be above $108, but not that much greater than that.

Let's start by TESTing Answer C: $120....

If.....
Retail Price = $120
10% discount off = $120 - (.1)(120) = 120 - 12 = 108
20% profit on wholesale price = 90 + (.2)(90) = 90 + 18 = 108

These two numbers MATCH, so this MUST be the answer!

Final Answer:
GMAT assassins aren't born, they're made,
Rich

An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?

A) $99
B) $108
C) $110
D) $117
E) $120

WP = $90
Sale @ 90% of retail price (RP)

$90x1.2=0.9RP
RP=120

Answer: E

Merging topics. Please refer to the discussion above.

I believe you meant C.

He made a profit of 20%. that means the machine was sold at 90*1.2= $108

This price is after 10% discount of retail price or 90% of the retail price

108= .90 P
P= 108/.9= 120

C is the answer

Hi All,

Beyond the various Algebra-based approaches, and TESTing THE ANSWERS, this question has some great logical shortcuts in it that can help you to avoid most of the 'math' involved.

To start, we know that the Wholesale Price was $90. Later, we're told that the dealer made a 20% profit on the Wholesale Price....

(20%)($90) =
(.2)($90) =
$18

Wholesale Price + Profit = $90 + $18 = $108

However, we were told that the Retail Price was DISCOUNTED by 10% (to get down to $108). We're asked for that original Retail Price.

Whatever that retail price was, we know that it was GREATER than $108.

10% of $108 is a little over $10, so that discount had to be GREATER than $10...

$108 + (> $10) = Retail Price > $118

There's only one answer that fits:

Final Answer:

GMAT assassins aren't born, they're made,
Rich

Here =>
WP=90
let the retail price be x
=> SP=x(1-.1)=0.9x
Profit =20/100 * 90=18
hence SP=90+18=108
Now .9x=108=> x=120

Nice question ; here the concepts of WP,RP and SP are being tested.

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