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# An orange vendor makes a profit of 20% by selling orange at a certain

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Math Expert
Joined: 02 Sep 2009
Posts: 64314
An orange vendor makes a profit of 20% by selling orange at a certain  [#permalink]

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10 Jul 2019, 01:04
00:00

Difficulty:

75% (hard)

Question Stats:

50% (02:14) correct 50% (02:01) wrong based on 102 sessions

An orange vendor makes a profit of 20% by selling orange at a certain price. If he charges $1.2 higher per orange he would gain 40%. Find the original price at which he sold an orange. (A) 4 (B) 4.8 (C) 5 (D) 6 (E) 7.2 _________________ Director Joined: 04 Sep 2015 Posts: 627 Location: India WE: Information Technology (Computer Software) Re: An orange vendor makes a profit of 20% by selling orange at a certain [#permalink] ### Show Tags 10 Jul 2019, 01:28 IMO : E An orange vendor makes a profit of 20% by selling orange at a certain price. If he charges$1.2 higher per orange he would gain 40%. Find the original price at which he sold an orange.

(A) 4
(B) 4.8
(C) 5
(D) 6
(E) 7.2

Sol:

120/100*+1.2=140/100

(12/10)X +12/10=(14/10)x

12X+12=14X

2x=12

x=6, that means the price before profit is 6 and when we add 20% then we see that option A,B,C and D are all lower than (120/100)6,
only option left =7.2. .

to verify

7.2+1.2=8.4 and (8.4/6)*100=140/100= 40% profit.
CEO
Joined: 03 Jun 2019
Posts: 2948
Location: India
GMAT 1: 690 Q50 V34
WE: Engineering (Transportation)
Re: An orange vendor makes a profit of 20% by selling orange at a certain  [#permalink]

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10 Jul 2019, 01:30
1
Bunuel wrote:
An orange vendor makes a profit of 20% by selling orange at a certain price. If he charges $1.2 higher per orange he would gain 40%. Find the original price at which he sold an orange. (A) 4 (B) 4.8 (C) 5 (D) 6 (E) 7.2 Let cost price be c and selling price be s s=1.2c s+1.2 = 1.4c 1.2c + 1.2 = 1.4c $$\frac{c}{c+1} = \frac{6}{7}$$ c=6 s=7.2 IMO E _________________ Kinshook Chaturvedi Email: kinshook.chaturvedi@gmail.com Senior Manager Joined: 09 Jun 2014 Posts: 329 Location: India Concentration: General Management, Operations Re: An orange vendor makes a profit of 20% by selling orange at a certain [#permalink] ### Show Tags 10 Jul 2019, 07:06 3 Normally the shopkeeper makes a profit of 20%.However if he charges 1.2 higher it results in profit of 40% This implies$1.2 contributes 20% of profit.

Now its easy.Lets assume cost price is x.

So 20% of x = 1.2

0.20x = 1.2

x= 6

Now target question is to find the original price at which he sold an orange.

SP=CP+Profit = 6+1.2 = 7.2

Hope it helps!!
Intern
Joined: 17 Jan 2019
Posts: 4
Location: India
Re: An orange vendor makes a profit of 20% by selling orange at a certain  [#permalink]

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10 Jul 2019, 07:40
1
Let the selling price(SP) with 20% profit be 1.2x, where x is Cost Price.

SP with 40% profit = 1.4x

Now,
1.4x - 1.2x = 1.2
.2x = 1.2
x= 6

SP with 20% profit = 1.2*6 = 7.2
Senior Manager
Joined: 27 Feb 2014
Posts: 277
Location: India
GMAT 1: 570 Q49 V20
GPA: 3.97
WE: Engineering (Education)
Re: An orange vendor makes a profit of 20% by selling orange at a certain  [#permalink]

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19 Jul 2019, 11:30
Bunuel wrote:
An orange vendor makes a profit of 20% by selling orange at a certain price. If he charges $1.2 higher per orange he would gain 40%. Find the original price at which he sold an orange. (A) 4 (B) 4.8 (C) 5 (D) 6 (E) 7.2 SP = 1.2*CP Then according to the condition 1.2*CP + 1.2 = 1.4CP 0.2*CP = 1.2 CP = 6 Actual SP = 6*1.2 = 7.2 E is correct. _________________ Inspired by great content in some best books on GMAT, I have created my own YouTube channel-QUANT MADE EASY! I would love some support and feedback. Please hit subscribe and check it out! https://www.youtube.com/channel/UCvdY0kJNbnJzPEOsT5PMFRQ SVP Joined: 24 Nov 2016 Posts: 1586 Location: United States Re: An orange vendor makes a profit of 20% by selling orange at a certain [#permalink] ### Show Tags 07 Aug 2019, 11:43 Bunuel wrote: An orange vendor makes a profit of 20% by selling orange at a certain price. If he charges$1.2 higher per orange he would gain 40%. Find the original price at which he sold an orange.

(A) 4
(B) 4.8
(C) 5
(D) 6
(E) 7.2

given: price=p and cost=c…
before: (p-c/c)=1/5… p=c/5+c
after: (p+1.2-c)/c=2/5… p=2c/5+c-1.2
equate p and find c: c/5+c=2c/5+c-1.2… c/5=1.2… c=6
find p: p=c/5+c… p=6/5+6=7.2

Re: An orange vendor makes a profit of 20% by selling orange at a certain   [#permalink] 07 Aug 2019, 11:43