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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, 19:30
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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, 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
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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, 17:28
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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, 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]

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New post 08 Dec 2017, 13:11
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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.

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, 09:57
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, 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.
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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, 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%

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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, 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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