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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. Manager  S Joined: 08 Nov 2015 Posts: 54 GMAT 1: 460 Q32 V22 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price? A. 10% B. 12% C. 15% D. 18% E. 20% Let Wholsale Price = WP Retail Price = R Profit percent on WP = 25% Selling price = 60% of R The equation become 60% Of R = 125% of WP = 125% of 60 i.e. R = 125*60*100/60*100= 125 Therefore R = 125 Profit= 75-60 =15 Profit percent at Retail Price = 15*100/125 = 12 Current Student B Joined: 19 May 2014 Posts: 1 Location: United States GMAT 1: 680 Q43 V40 GPA: 3.17 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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 Manager  S Joined: 03 Jan 2017 Posts: 131 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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$[#permalink] ### Show Tags 1 email2vm wrote: An electronics store purchased a CD player at a wholesale price of 60$ 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.

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GMAT 1: 620 Q36 V39 GMAT 2: 650 Q47 V33 ### Show Tags

email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price? A. 10% B. 12% C. 15% D. 18% E. 20% Isn't it supposed to be "Wholesale" price? This question took me a ton of time because I couldn't figure out what "Whole price" was supposed to be. EMPOWERgmat Instructor V Status: GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Joined: 19 Dec 2014 Posts: 17078 Location: United States (CA) GMAT 1: 800 Q51 V49 GRE 1: Q170 V170 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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 = $15 We're asked for the PROFIT as a percent of the RETAIL PRICE... (15)/(125) = 3/25 = 12% Final Answer: GMAT assassins aren't born, they're made, Rich _________________ Intern  B Joined: 30 Nov 2017 Posts: 22 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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] ### Show Tags 1 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/$125 = 3/25 = 12%. Hope it is clear Director  G Joined: 20 Feb 2015 Posts: 721 Concentration: Strategy, General Management Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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% 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$[#permalink] ### Show Tags Solution: Given: The wholesale price of a CD player = 60$.
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”. _________________ GMAT Mentors Intern  B Joined: 09 Mar 2017 Posts: 11 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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? Intern  B Joined: 20 Mar 2019 Posts: 1 GMAT 1: 590 Q30 V42 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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 = $15, hence, P/R=15/125=0.12 or 12%. Hope that helps. Intern  B Joined: 05 Jun 2017 Posts: 10 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price? Bunuel Please correct "whole" to "wholesale" and "stores" to " store's " (As per GMATprep 6) Thanks, Math Expert V Joined: 02 Sep 2009 Posts: 65241 Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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deepudalan wrote:
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price? Bunuel Please correct "whole" to "wholesale" and "stores" to " store's " (As per GMATprep 6) Thanks, ______________ Done. Thank you. _________________ Senior Manager  P Joined: 10 Apr 2018 Posts: 267 Location: United States (NC) Re: An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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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$[#permalink] ### Show Tags Here, Cost price (CP) = whole sale price =60 We do not know the original retail price. Let Original Retail Price (ORP) = R Selling price (SP) = 60% of R = .6R Profit = 25% on whole sale price = .25 *60 = ¼*60 = 15 SP – CP = profit .6R – 60 = 15 .6R = 75 R =75/.6 = 125 The store's profit as a percent of the original retail price = (15/125) * 100 = 12%(B) Re: An electronics store purchased a CD player at a wholesale price of 60$   [#permalink] 31 Jan 2020, 01:53

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