GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 19 Oct 2018, 13:36

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

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

Author Message
TAGS:

### Hide Tags

Manager
Joined: 12 Oct 2011
Posts: 113
GMAT 1: 700 Q48 V37
GMAT 2: 720 Q48 V40
A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

16 Apr 2012, 05:04
1
16
00:00

Difficulty:

5% (low)

Question Stats:

86% (01:49) correct 14% (02:09) wrong based on 301 sessions

### HideShow timer Statistics

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. ##### Most Helpful Expert Reply Math Expert Joined: 02 Sep 2009 Posts: 50002 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 16 Apr 2012, 05:15 6 6 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. _________________ ##### General Discussion Senior Manager Joined: 10 Jul 2013 Posts: 315 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 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
_________________

Asif vai.....

Senior Manager
Joined: 10 Jul 2013
Posts: 315
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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: Attachments price.png [ 16.12 KiB | Viewed 7827 times ] _________________ Asif vai..... Manager Joined: 23 Apr 2012 Posts: 50 GMAT 1: 690 Q49 V34 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 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 ? Math Expert Joined: 02 Sep 2009 Posts: 50002 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 26 Nov 2013, 08:59 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 ? 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.
_________________
Manager
Joined: 23 Apr 2012
Posts: 50
GMAT 1: 690 Q49 V34
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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 .
Math Expert
Joined: 02 Sep 2009
Posts: 50002
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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 _________________ Intern Status: Preparing for GMAT Joined: 10 Dec 2013 Posts: 15 Location: India Concentration: Marketing, Leadership GMAT 1: 530 Q46 V18 WE: Other (Entertainment and Sports) Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 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? Manager Joined: 11 Jun 2014 Posts: 55 Concentration: Technology, Marketing GMAT 1: 770 Q50 V45 WE: Information Technology (Consulting) Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 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.
SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1829
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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 _________________ Kindly press "+1 Kudos" to appreciate Intern Joined: 23 Dec 2014 Posts: 48 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 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.
EMPOWERgmat Instructor
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 12676
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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: GMAT assassins aren't born, they're made, Rich _________________ 760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com # Rich Cohen Co-Founder & GMAT Assassin Special Offer: Save$75 + GMAT Club Tests Free
Official GMAT Exam Packs + 70 Pt. Improvement Guarantee
www.empowergmat.com/

*****Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!*****

Retired Moderator
Joined: 19 Mar 2014
Posts: 948
Location: India
Concentration: Finance, Entrepreneurship
GPA: 3.5
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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 _________________ "Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent." Best AWA Template: https://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html#p470475 Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 3888 Location: United States (CA) Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] ### Show Tags 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.

_________________

Scott Woodbury-Stewart
Founder and CEO

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Intern
Joined: 09 Oct 2016
Posts: 35
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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
Manager
Joined: 27 Jan 2016
Posts: 142
Schools: ISB '18
GMAT 1: 700 Q50 V34
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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
Intern
Joined: 03 Feb 2016
Posts: 13
Location: China
Re: A retailer bought a shirt at wholesale and marked it up 80%  [#permalink]

### Show Tags

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.
Re: A retailer bought a shirt at wholesale and marked it up 80% &nbs [#permalink] 04 Aug 2018, 07:26
Display posts from previous: Sort by