It is currently 20 Nov 2017, 12:41

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A trader finds that the net profit he has made, inspite of h

Author Message
TAGS:

### Hide Tags

Intern
Joined: 22 Sep 2011
Posts: 28

Kudos [?]: 28 [0], given: 20

### Show Tags

23 Sep 2011, 10:31
1
This post was
BOOKMARKED
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (00:00) wrong based on 4 sessions

### HideShow timer Statistics

I am posting one question and seems to be of good quality...

A trader finds that the net profit he has made, inspite of his spring balance reading 10% less than the actual weight, is 20%. What is the markup on the cost price?

Kudos [?]: 28 [0], given: 20

Intern
Status: Mission MBA
Joined: 02 Jul 2010
Posts: 43

Kudos [?]: 16 [0], given: 5

Schools: ISB, IIMs
Re: profit and loss question - complex level [#permalink]

### Show Tags

23 Sep 2011, 21:09
1
This post was
BOOKMARKED
jrymbei wrote:
I am posting one question and seems to be of good quality...

A trader finds that the net profit he has made, inspite of his spring balance reading 10% less than the actual weight, is 20%. What is the markup on the cost price??

Lets assume the total cost of 1 unit of an item: \$100
Since the spring shows 10% less: so the measured value of an item will be 0.9 instead of 1 unit. So, the trader will charge \$90

And as given in the problem statement 90 = 1.2* x (where x is the cost price of unit)
x= 75

Target selling price = cost price + markup
markup= 100-75 =\$25

markup % = 25/75 = 33.33%

Cheers!!!!!!!

Kudos [?]: 16 [0], given: 5

Intern
Joined: 22 Sep 2011
Posts: 28

Kudos [?]: 28 [0], given: 20

Re: profit and loss question - complex level [#permalink]

### Show Tags

23 Sep 2011, 21:24
Good explanation and the answer is correct.

Kudos [?]: 28 [0], given: 20

Manager
Joined: 14 Mar 2011
Posts: 198

Kudos [?]: 132 [0], given: 21

Re: profit and loss question - complex level [#permalink]

### Show Tags

23 Sep 2011, 21:36
Let the the cost price of 1 kg of item be \$ 1. Now when trader sells 1 kg, he actually sells more than 1 kg . let he actually sell x kg. According to question (x - 10/100 *x)=1 so x =10/9 kg. A/q he sells 10/9 instead of 1 kg . and on this 10/9 kg he gets profit of 20%. 120% of 10/9 =1.33 \$. This mark-up price pertains to translation that was made on 1kg item @ 1 \$. so mark-up price = 33.33%

Kudos [?]: 132 [0], given: 21

Non-Human User
Joined: 09 Sep 2013
Posts: 15617

Kudos [?]: 283 [0], given: 0

### Show Tags

21 Jan 2017, 00:56
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

Kudos [?]: 283 [0], given: 0

Re: A trader finds that the net profit he has made, inspite of h   [#permalink] 21 Jan 2017, 00:56
Display posts from previous: Sort by