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

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Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink]
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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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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. Intern Joined: 23 Apr 2012 Posts: 43 Own Kudos [?]: 36 [0] Given Kudos: 2 GMAT 1: 690 Q49 V34 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] 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: 94616 Own Kudos [?]: 643834 [0] Given Kudos: 86753 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] Expert Reply 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.

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Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink]
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 Target Test Prep Representative Joined: 14 Oct 2015 Status:Founder & CEO Affiliations: Target Test Prep Posts: 19200 Own Kudos [?]: 22719 [0] Given Kudos: 286 Location: United States (CA) Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] Expert Reply 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.

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

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 Tutor Joined: 04 Aug 2010 Posts: 1328 Own Kudos [?]: 3238 [1] Given Kudos: 9 Schools:Dartmouth College Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] 1 Kudos Expert Reply 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

An alternate approach is to PLUG IN THE ANSWERS, which represent the dollars needed to increase the markup to 100%.

100% markup = 2 TIMES the wholesale price = probably EVEN
Implication:
When the correct answer is added to $45, the result is probably EVEN. Since the wholesale price is initially marked up by 80% = 4/5, the wholesale price is almost certain to be a MULTIPLE OF 5. Only E will yield an even multiple of 5 when added to 45. Test E. When the correct answer is plugged in, adding 80% to the wholesale price must yield an initial selling price of$45.

E: 5
New price = 45+5 = 50
Since the new price is twice the wholesale price, the wholesale price = 25.
Adding an 80% markup to the $25 wholesale price, we get: $$25 + \frac{4}{5}*25 = 25+20 = 45$$ Success! Intern Joined: 04 Apr 2022 Posts: 1 Own Kudos [?]: 0 [0] Given Kudos: 0 Re: A retailer bought a shirt at wholesale and marked it up 80% [#permalink] why 80% is equal to 1.8 GMAT Club Legend Joined: 19 Dec 2014 Status:GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Posts: 21835 Own Kudos [?]: 11799 [0] Given Kudos: 450 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] Expert Reply Hi Gaurisadhwani1, In math terms, 80% is equal to 0.8 In this prompt, we are told that the price of a shirt is 'marked UP' 80% to a price of$45. This means that there was an initial price (we can refer to that as 'X'), which was then raised by 80%....

Initial price = X
Raised price = X + .8X = 1.8X

Since this result is equal to \$45, we have the equation:

1.8X = 45

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