It is currently 22 Sep 2017, 10:06

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Gross Profit word problem

Author Message
Intern
Joined: 22 Dec 2005
Posts: 8

Kudos [?]: [0], given: 0

### Show Tags

31 Dec 2005, 14:17
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

Hi,

A furniture dealer purchased a desk for \$150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from thepurchase and sale of the desk.

I came up with \$60 as the profit - \$150 + 60 (40% of the price) - 150 but this was not the answer. Can someone please explain to me why this is wrong?

Kudos [?]: [0], given: 0

VP
Joined: 06 Jun 2004
Posts: 1051

Kudos [?]: 175 [0], given: 0

Location: CA
Re: Gross Profit word problem [#permalink]

### Show Tags

31 Dec 2005, 14:20
twinkle9600 wrote:
Hi,

A furniture dealer purchased a desk for \$150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from thepurchase and sale of the desk.

I came up with \$60 as the profit - \$150 + 60 (40% of the price) - 150 but this was not the answer. Can someone please explain to me why this is wrong?

Gross profit = SP - PP

SP = 150 + 0.40SP ==> SP = 250

250 - 150 = 100
_________________

Don't be afraid to take a flying leap of faith.. If you risk nothing, than you gain nothing...

Kudos [?]: 175 [0], given: 0

Intern
Joined: 22 Dec 2005
Posts: 8

Kudos [?]: [0], given: 0

### Show Tags

31 Dec 2005, 14:54
Thanks...I got it.

Kudos [?]: [0], given: 0

31 Dec 2005, 14:54
Display posts from previous: Sort by