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An electronics store purchased a CD player at a wholesale price of 60$

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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 07 Sep 2016, 18:30
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sairam595 wrote:
chetan2u wrote:
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price.
If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?

A> 10%
B> 12%
C> 15%
D> 18%
E> 20%

Need help with this questions


Hi,
here we just have to be careful what should be the BASE on which profit is being calculated..

WP = 60
ORP = R
Selling Price =S= 0.6R

% profit on \(WP = 25% = \frac{(0.6R-60)}{60} *100\)
R = 125..
Profit = 0.6R-60 = 75-60=15..

Profit as a percent of the original retail price =\(\frac{15}{R}*100 = \frac{15}{125}*100 =12\)
B


Dear chetan2u / Bunuel

Can you please explain how you derive R=125



% of profit on WP = 25%

(0.6R - 60)/60 = 25/100

=> R = 300/2.4 => R = 125.

Hope it's clear now.
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 06 Jan 2017, 03:25
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?

A. 10%
B. 12%
C. 15%
D. 18%
E. 20%



Let Wholsale Price = WP
Retail Price = R
Profit percent on WP = 25%
Selling price = 60% of R

The equation become
60% Of R = 125% of WP = 125% of 60
i.e. R = 125*60*100/60*100= 125
Therefore R = 125

Profit= 75-60 =15
Profit percent at Retail Price = 15*100/125 = 12
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 05 Mar 2017, 16:28
3
I did this one a bit differently, using the Profit = Revenue - Cost formula.


"The store made a 25% profit on the wholesale price of the CD"

\(Profit = \frac{1}{4} * Wholesale Price\)

Profit = 15

Now, the only cost given is the wholesale price of $60, so using the P = R - C formula above gives:

Profit = Revenue - Cost
$15 = Revenue - $60
Revenue = $75

The crux of the problem comes in recognizing that the revenue, $75, is the selling price, which is a 40% discount from the original retail price. Translating this gives:

75 = 60% * OriginalPrice

\(OriginalPrice = \frac{75*5}{3}\)
\(OriginalPrice = 25 * 5\)
\(OriginalPrice = 125\)

Finally, the question asks us to find the store's profit as a percent of the original price. This can be translated as:

\(\frac{x}{100}\)= \(\frac{Profit}{OriginalPrice}\)
\(\frac{x}{100}\) = \(\frac{15}{125}\)
\(\frac{x}{100}\) = \(\frac{3}{25}\) <-- (multiply numerator and denominator by 4)
\(\frac{x}{100} = \frac{12}{100}\)

x = 12

Ans B
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 12 Mar 2017, 11:01
here we need: profit/original price
profit= 0,6R-60
original price R
(0,6R-60)/60=1/4
0,6R-60=15
Original pric: R=75*5/3
15/125=12
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 08 Dec 2017, 12:11
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email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?

A. 10%
B. 12%
C. 15%
D. 18%
E. 20%


We are given that the cost of the CD player was 60 dollars and that the store sold it at a 40 percent discount off the original retail price. If we let x = the original retail price, then the store sold the CD player for 0.6x dollars. Since the store made a 25% profit on the wholesale price, it made 0.25(60) = 15 dollars of profit. Since revenue - cost = profit, we can create the following equation:

0.6x - 60 = 0.25(60)

0.6x - 60 = 15

0.6x = 75

x = 125

So the profit as a percent of the original retail price is:

15/125 x 100 = 0.12 x 100 = 12 percent.

Answer: B
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 24 Dec 2017, 08:57
Language is tricky, even although I am a licensed US CPA and have had over 15 years of experience in audit and finance, I got confused and made a mistake...Otherwise, of course, it is an easy problem.
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 24 Dec 2017, 20:13
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?

A. 10%
B. 12%
C. 15%
D. 18%
E. 20%


Isn't it supposed to be "Wholesale" price? This question took me a ton of time because I couldn't figure out what "Whole price" was supposed to be.
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 21 Jan 2018, 12:40
Hi All,

Since the answer choices in this question are relatively close together, you have to be careful about the math 'work' that you do - and make sure that you label all of your work so that you don't get lost in all of the details in this prompt...

We're told that a CD player had a wholesale price of $60 and that it was sold at 40% off the RETAIL PRICE...

Retail Price = X
Wholesale Price = 60
Actual Sell Price = X - .4X = .6X

The store made a 25% profit on the WHOLESALE price, so...

Actual Sell Price = 60 + .25(60) = 60 + 15 = 75
.6X = 75
X = 75/.6 = 750/6 = 125

So....
Retail Price = $125
Wholesale Price = $60
Actual Sell Price = $75
Profit = $15

We're asked for the PROFIT as a percent of the RETAIL PRICE... (15)/(125) = 3/25 = 12%

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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 15 Feb 2018, 08:44
Suppose retail price = x
Sale price = 0.6 x (because of 40 percent discount off the original retail price)
Profit = 0.6 x - 60

Profit = 25%

So, (0.6 x - 60)/60 = 25/100
Solving, x = 125

So, Profit = 0.6 x - 60 = 15

profit as a percent of the original retail price = 15/125 = 12%
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 23 Jul 2018, 22:41
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mitko20m wrote:
Confusing.. Please spell out your explanation and write out full solutions. Thanks a lot!

Specific question: how did you get to R=125. did you assume r=100?
% profit on WP=25WP=25
R = 125..


We don't need to assume anything :)

1) Wholesale Price = $60
2) The store made a 25% profit on the wholesale price, which means, that the store sold the CD player at a cost $60 + 0.25*60 = $75
3) We know that the store sold the CD player at a 40 percent discount of original retail price AND, at the same time, made 25% profit on the wholesale price (above). Let's denote X as our original retail price.

Thus, we can easily draw an equation:
$75 = (1-0.4)*X
$75 = 0.6X
X = $75:0.6 = $125

The questions asks: what was the store’s profit as a percent of the original retail price?

The store's profit is 25% of the wholesale price (point 2), which equals 25% of $60 = $15.
And we found original retail price ($125). Our answer is $15/$125 = 3/25 = 12%.

Hope it is clear
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 24 Jul 2018, 02:43
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?

A. 10%
B. 12%
C. 15%
D. 18%
E. 20%


wp(whole sale price) = $60 ----------->RP(Retail Price)=R------40% discount------->0.6R=SP(Selling price)

ATQ !!
He made 25% profit on WP
which means SP = 60+60/4=75=0.6R
so, R=125
profit on WP = 75-60=15
profit on R = 15/125
profit % = 15*100/125=12
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 30 Jan 2019, 04:11
Solution:

Given: The wholesale price of a CD player = 60$.
Let the original retail price = ‘x’ $
Discount on the original retail prize = 40% of x = 0.4x
Selling price of the CD player = (x – 0.4x) = 0.6x
Since the store made 25% profit on the whole sale price of the CD player = 25% of 60 = 15$.
We can write the equation as:
\(0.6x-60=15\)

\(0.6x=75\)

\(x=125\)

Therefore, the original retail prize, ‘x’ = 125 $
So, the store's profit as a percent of the original retail price = \(\frac{15}{125} × 100\) = 12 percent.

The correct answer option is “B”.
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 30 Jan 2019, 05:06
chetan2u wrote:
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price.
If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?

A> 10%
B> 12%
C> 15%
D> 18%
E> 20%

Need help with this questions


Hi,
here we just have to be careful what should be the BASE on which profit is being calculated..

WP = 60
ORP = R
Selling Price =S= 0.6R

% profit on \(WP = 25% = \frac{(0.6R-60)}{60} *100\)
R = 125..
Profit = 0.6R-60 = 75-60=15..

Profit as a percent of the original retail price =\(\frac{15}{R}*100 = \frac{15}{125}*100 =12\)
B



Hi - where did you get the % profit on \(WP = 25% = \frac{(0.6R-60)}{60} *100\)
R = 125.

from?
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 23 Apr 2019, 06:47
WP = 60 **at a wholesale price of 60$**
ORP = R
Selling Price = S = 0.6R **sold it at a 40 percent discount off the original retail price.**

Profit Formula = S - WP = 0.6R-60 = (1/4)*60 **store made a 25 percent profit on the whole price**
0.6R-60=(1/4)*60
0.6R-60=15
0.6R=15+60
0.6R=75
(3/5)*R=75
R=75*5/3
R=$125

What is profit as a percent of the original retail price or P/R?
As shown above, P = $15, hence,
P/R=15/125=0.12 or 12%.

Hope that helps.
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 18 Nov 2019, 06:02
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?



Bunuel

Please correct "whole" to "wholesale" and "stores" to " store's " (As per GMATprep 6)

Thanks,
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 18 Nov 2019, 08:55
deepudalan wrote:
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price?



Bunuel

Please correct "whole" to "wholesale" and "stores" to " store's " (As per GMATprep 6)

Thanks,

______________
Done. Thank you.
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 30 Jan 2020, 21:12
Here are my two cents for this question:

Method 1: Ratio Method

Lets See the ratio between CP: SP
if we say CP =100 the we can tell that SP =125
and ratio of CP:SP = 4:5

Lets See the ratio between MP: SP
If we say MP =100 the SP = 60
Ratio of MP:SP= 5:3

we have two ratios
CP: SP and MP:SP
or we can Say CP: SP and SP: MP
CP: SP= 4:5 and SP: MP= 3:5
To find ratio of CP:SP: MP
we see its 12:15: 25
Profit (15-12)= 3
Profit % over MP =\(\frac{3}{25}*100\) = 12%

Method 2: Percent Scale Method

-----CP----------MP--------------SP
----- x----------100--------------60
If MP =100 then after discount of 40% on MP , the SP will be 60
and we are told that 60= 125% of CP
this mean CP =x:
x= 60 *\(\frac{100}{125}\) =48

-----CP----------MP--------------SP
-----48----------100--------------60
Profit is 60-48= 12
We have profit over MP = \(\frac{12}{100}*100\) = 12%

Hope this helps
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Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 31 Jan 2020, 01:53
Here, Cost price (CP) = whole sale price =60
We do not know the original retail price. Let Original Retail Price (ORP) = R
Selling price (SP) = 60% of R = .6R
Profit = 25% on whole sale price
= .25 *60 = ¼*60 = 15

SP – CP = profit
.6R – 60 = 15
.6R = 75
R =75/.6 = 125

The store's profit as a percent of the original retail price = (15/125) * 100 = 12%(B)
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Re: An electronics store purchased a CD player at a wholesale price of 60$   [#permalink] 31 Jan 2020, 01:53

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