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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
1
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 05 Mar 2017, 17:28
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, 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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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%
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An electronics store purchased a CD player at a wholesale price of 60$  [#permalink]

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New post 23 Jul 2018, 23:41
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, 03:43
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
Re: An electronics store purchased a CD player at a wholesale price of 60$ &nbs [#permalink] 24 Jul 2018, 03:43

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