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07 Sep 2016, 19:30
1
KUDOS
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 Joined: 08 Nov 2015 Posts: 79 GMAT 1: 460 Q32 V22 Re: An electronics store purchased a CD player at a wholesale price of 60$ [#permalink]

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06 Jan 2017, 04:25
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price? A. 10% B. 12% C. 15% D. 18% E. 20% Let Wholsale Price = WP Retail Price = R Profit percent on WP = 25% Selling price = 60% of R The equation become 60% Of R = 125% of WP = 125% of 60 i.e. R = 125*60*100/60*100= 125 Therefore R = 125 Profit= 75-60 =15 Profit percent at Retail Price = 15*100/125 = 12 Intern Joined: 19 May 2014 Posts: 1 Re: An electronics store purchased a CD player at a wholesale price of 60$ [#permalink]

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05 Mar 2017, 17:28
3
KUDOS
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 Joined: 03 Jan 2017 Posts: 181 Re: An electronics store purchased a CD player at a wholesale price of 60$ [#permalink]

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12 Mar 2017, 12:01
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$[#permalink] ### Show Tags 08 Dec 2017, 13:11 1 This post received KUDOS Expert's post email2vm wrote: An electronics store purchased a CD player at a wholesale price of 60$ 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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24 Dec 2017, 21:13
email2vm wrote:
An electronics store purchased a CD player at a wholesale price of 60$and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the whole price of the CD player, what was the stores profit as a percent of the original retail price? A. 10% B. 12% C. 15% D. 18% E. 20% Isn't it supposed to be "Wholesale" price? This question took me a ton of time because I couldn't figure out what "Whole price" was supposed to be. EMPOWERgmat Instructor Status: GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Joined: 19 Dec 2014 Posts: 11647 Location: United States (CA) GMAT 1: 800 Q51 V49 GRE 1: 340 Q170 V170 Re: An electronics store purchased a CD player at a wholesale price of 60$ [#permalink]

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21 Jan 2018, 13:40
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% 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$75 + GMAT Club Tests Free
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Re: An electronics store purchased a CD player at a wholesale price of 60$[#permalink] ### Show Tags 15 Feb 2018, 09:44 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% Re: An electronics store purchased a CD player at a wholesale price of 60$   [#permalink] 15 Feb 2018, 09:44

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