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A retailer bought a shirt at wholesale and marked it up 80%

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A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post Updated on: 26 Sep 2019, 09:12
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A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

A. 1
B. 2
C. 3
D. 4
E. 5


Kind of confused here. A 80% markup over $45 would be $81, a 100% markup would be $90, so in order to get a 100% markup he would need to increase the price by $9?! Either there's a mistake in the question or I misunderstood it.

Originally posted by BN1989 on 16 Apr 2012, 05:04.
Last edited by Abhishek009 on 26 Sep 2019, 09:12, edited 1 time in total.
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 16 Apr 2012, 05:15
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BN1989 wrote:
A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

A. 1
B. 2
C. 3
D. 4
E. 5

Kind of confused here. A 80% markup over $45 would be $81, a 100% markup would be $90, so in order to get a 100% markup he would need to increase the price by $9?! Either there's a mistake in the question or I misunderstood it.


The point is that $45 is already a retail price, so a price after 80% mark up on wholesale price.

Say wholesale price x, then 1.8x=45 --> x=25. In order to achieve a 100% markup a retail price should be 2*25=$50, so $5 more.

Answer: E.
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 12 Aug 2013, 06:30
BN1989 wrote:
A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

A. 1
B. 2
C. 3
D. 4
E. 5


Kind of confused here. A 80% markup over $45 would be $81, a 100% markup would be $90, so in order to get a 100% markup he would need to increase the price by $9?! Either there's a mistake in the question or I misunderstood it.

...
tricky question...especially the wording..... Answer is E
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 12 Aug 2013, 06:40
1
1
BN1989 wrote:
A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

A. 1
B. 2
C. 3
D. 4
E. 5


Kind of confused here. A 80% markup over $45 would be $81, a 100% markup would be $90, so in order to get a 100% markup he would need to increase the price by $9?! Either there's a mistake in the question or I misunderstood it.

For me the typical solution is like below:
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price.png [ 16.12 KiB | Viewed 10170 times ]


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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 26 Nov 2013, 08:54
Got the answer, but not sure if i understand the language of the question !
It says "marked it up 80% to initial price OF $45" -> shouldn't this imply that the initial price was $45 ?
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 26 Nov 2013, 08:59
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 26 Nov 2013, 11:39
Bunuel wrote:

Wholesale price = x.
Initial price = $45.
Mark up = 80%.

1.8x=45 --> x=25.

In order to achieve a 100% markup a retail price should be 2*25=$50, so $5 more.

Hope this helps.


Thanks Bunnel. I'm going to need a little more help here !
You said initial price was 45$. Then markup was 80% hence final price would be 45+((80/100)*45) . This would lead to 81.
100% markup from 45 should mean 90. hence 90-81= 9.
This was my initial approach. When i couldnt find 9 in the options, then i went on to do 1.8x=45
But i still dont get why the language of the question doesnt mean that the initial price was actually 45.
Per your equation , 1.8x=45 , it seems that 45 was the final price after the markup .
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 26 Nov 2013, 11:46
surbhi87 wrote:
Bunuel wrote:

Wholesale price = x.
Initial price = $45.
Mark up = 80%.

1.8x=45 --> x=25.

In order to achieve a 100% markup a retail price should be 2*25=$50, so $5 more.

Hope this helps.


Thanks Bunnel. I'm going to need a little more help here !
You said initial price was 45$. Then markup was 80% hence final price would be 45+((80/100)*45) . This would lead to 81.
100% markup from 45 should mean 90. hence 90-81= 9.
This was my initial approach. When i couldnt find 9 in the options, then i went on to do 1.8x=45
But i still dont get why the language of the question doesnt mean that the initial price was actually 45.
Per your equation , 1.8x=45 , it seems that 45 was the final price after the markup .


The point is that $45 is already a retail price (initial price), so a price after 80% mark up on wholesale price.

Please check here: a-retailer-bought-a-shirt-at-wholesale-and-marked-it-up-130759.html#p1074292
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 04 Aug 2014, 18:53
The words 80% of the initial price are so misleading! More often than not, many people would be thinking Oh! Initial price has to be the cost price. Why would Gmat do something like that?
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 04 Aug 2014, 21:00
"A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45"

I think it sounds vague, but its actually correct, when the sentence says, "marked it up", it refers to 'wholesale price'.. marked it up to get the initial price of $45. Initial price is not wholesale price here.. its the price after mark up.

BTW this can be solved without any effort. 80% is 4/5 of the wholesale price. so the current ratio of sale price to cost price is 1+4/5 = 9/5. When we see 9/5 and $45, its rings a bell.. so the wholesale price ( cost) must be 25 and to get a 100% markup, the sale price should be 50, so the price needs to be increased by 5.
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 06 Aug 2014, 03:13
Marked it up 80% to its initial price of $45

So cost in wholesale \(= 45*\frac{100}{180} = 25\)

100% marked up means 25*2 = 50

Increase required = 50-45 = 5

Answer = E
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 11 Jan 2015, 15:57
surbhi87 wrote:
Got the answer, but not sure if i understand the language of the question !
It says "marked it up 80% to initial price OF $45" -> shouldn't this imply that the initial price was $45 ?


Yes, wording is really tricky or poor !!! I thought $45 was the retail price at the first sight.
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 11 Jan 2015, 16:50
Hi All,

The first sentence in this prompt clearly states the 'order' of events:

1) A retailer bought a shirt at wholesale (let's say X dollars)
2) Marked it up 80%.....1.8X dollars
3) To its initial price of $45

From this, we have an algebra equation:

1.8X = 45

From here, the math can be done in a couple of different ways....

You COULD solve for X then redo the entire calculation to figure out what the increase would need to be for the price to be marked up 100%

OR.....

You COULD set up a ratio....

Since we need a 100% mark-up, we're looking for the value of 2X. This means that we want to increase 1.8X by 0.2X....

1.8X/0.2X = 45/Y where Y is the amount that the price of the item would need to be MARKED-UP to make the markup 100%

1.8X/.2X = 45/Y
9/1 = 45/Y
9Y = 45
Y = 5

Final Answer:

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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 26 Jun 2017, 10:30
A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

Let the wholesale price for this shirt be x

\(x + 0.8x = 45\)

\(1.8x = 45\)

\(x = \frac{45}{1.8}\)

\(x = 25\)

So, wholesale price = $ 25, 100% increase will make the price = $ 50

Diff: \($50 - $45 = $5\)

Hence, the answer is E
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 28 Jun 2017, 16:52
BN1989 wrote:
A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

A. 1
B. 2
C. 3
D. 4
E. 5


We can let x = the increased price and create the following proportion:

1.8/45 = 2/x

1.8x = 90

x = 90/1.8 = 50

Thus, the item needs to be marked up by 5 more dollars.

Answer: E
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 22 Jul 2017, 07:21
BN1989 wrote:
A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

A. 1
B. 2
C. 3
D. 4
E. 5


Kind of confused here. A 80% markup over $45 would be $81, a 100% markup would be $90, so in order to get a 100% markup he would need to increase the price by $9?! Either there's a mistake in the question or I misunderstood it.


We are asked increase the price to achieve a 100% markup.
From the question, we already increased to to 80% markup.
We need to increase the initial price by more 20% to achieve the 100%.
180% = 45
notice that both numbers (180 and 45) are divisible by 9
20% = 5
So the answer is E
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 22 Jul 2017, 07:44
Stem states that 1.8x = 45
100% mark up is 2x, i.e an additional 0.2x

So, (0.2x/1.8x)*45 = 5
Answr:E
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 04 Aug 2018, 07:26
This is how i solved it:

C.P = 45
M.P = 45*1.8 = 81 (80% mark up)
In order to achieve a 100% mark up

(45+x) * 1.8 = 100
we need to find x

So solving the equation, we get :

x = 5
Answer = E which means if 45 is increased by 5 then it will be a 100 percent mark up.
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 26 Sep 2019, 09:11
BN1989 wrote:
A retailer bought a shirt at wholesale and marked it up 80% to its initial price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?

A. 1
B. 2
C. 3
D. 4
E. 5


Kind of confused here. A 80% markup over $45 would be $81, a 100% markup would be $90, so in order to get a 100% markup he would need to increase the price by $9?! Either there's a mistake in the question or I misunderstood it.


\(\frac{45}{180}*200 = 50\)

Thus, price must be increased by $ 5, Answer must be (E)
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Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

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New post 30 Sep 2019, 08:09

Solution



Given
    • A retailer marked up the price of a shirt by 80% to 45.

To find
    • By how many more dollars does he need to increase the price to achieve a 100% mark-up

Approach and Working out
    • Price after 80% markup= 45
      o So, 1.8* Cost price = 45
      o Cost price = 45/1.8 = 450/18 = 50/2=25
    • So, the price after 100% mark up = 50

Hence, the price of the shirt if increased by $5 will give 100% mark up.

Thus, option E is the correct answer.

Correct Answer: Option E
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Re: A retailer bought a shirt at wholesale and marked it up 80%   [#permalink] 30 Sep 2019, 08:09

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