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# If the profit on a product is 20 percent of its sales price, what perc

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Math Revolution GMAT Instructor
Joined: 16 Aug 2015
Posts: 5452
GMAT 1: 800 Q59 V59
GPA: 3.82
If the profit on a product is 20 percent of its sales price, what perc [#permalink]

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30 Apr 2018, 01:33
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25% (medium)

Question Stats:

80% (01:07) correct 20% (01:11) wrong based on 41 sessions

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[GMAT math practice question]

If the profit on a product is $$20$$ percent of its sales price, what percent is the profit of the cost price?

$$A. 20$$%
$$B. 25$$%
$$C. 30$$%
$$D. 33+(\frac{1}{3})$$%
$$E. 35$$%

_________________

MathRevolution: Finish GMAT Quant Section with 10 minutes to spare
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"Only $79 for 3 month Online Course" "Free Resources-30 day online access & Diagnostic Test" "Unlimited Access to over 120 free video lessons - try it yourself" BSchool Forum Moderator Joined: 07 Jan 2016 Posts: 723 Location: India GMAT 1: 710 Q49 V36 Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink] ### Show Tags 30 Apr 2018, 02:03 MathRevolution wrote: [GMAT math practice question] If the profit on a product is $$20$$ percent of its sales price, what percent is the profit of the cost price? $$A. 20$$% $$B. 25$$% $$C. 30$$% $$D. 33+(\frac{1}{3})$$% $$E. 35$$% SP= 100 profit = 20 CP = 80 profit/Cp = 20/80 = 1/4 = 25% (B) imo Manager Joined: 15 Nov 2017 Posts: 63 Location: India Concentration: Operations, Marketing GPA: 4 WE: Operations (Retail) Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink] ### Show Tags 30 Apr 2018, 03:22 Profit= 1/5 (SP) SP = CP + Profit CP= 4/5 SP Profit/CP = 1/4 = 25% _________________ All egmat SC Resource for FREE Like = +Kudos SVP Joined: 12 Sep 2015 Posts: 2478 Location: Canada Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink] ### Show Tags 30 Apr 2018, 11:16 Expert's post Top Contributor MathRevolution wrote: [GMAT math practice question] If the profit on a product is $$20$$ percent of its sales price, what percent is the profit of the cost price? $$A. 20$$% $$B. 25$$% $$C. 30$$% $$D. 33+(\frac{1}{3})$$% $$E. 35$$% Choosing numbers that satisfy the given conditions (as others above have done) is the best/fastest approach. Here's a (longer) algebraic approach. Let SALE price = x So, PROFIT = 20% of x = 0.2x COST PRICE = SALE PRICE - PROFIT = x - 0.2x = 0.8x What percent is the profit of the cost price? In other words, 0.2x/0.8x = what %? 0.2x/0.8x = 0.2/0.8 = 2/8 = 1/4 = 25% Answer: B Cheers, Brent _________________ Brent Hanneson – Founder of gmatprepnow.com Target Test Prep Representative Status: Head GMAT Instructor Affiliations: Target Test Prep Joined: 04 Mar 2011 Posts: 2442 Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink] ### Show Tags 01 May 2018, 10:04 MathRevolution wrote: If the profit on a product is $$20$$ percent of its sales price, what percent is the profit of the cost price? $$A. 20$$% $$B. 25$$% $$C. 30$$% $$D. 33+(\frac{1}{3})$$% $$E. 35$$% We can let r = sales price and c = cost price and p = the profit. Recall that p = r - c. So we have: 0.2r = r - c c = r - 0.2r c = 0.8r Thus, the profit is p/c = 0.2r/(0.8r) = 1/4 = 25% of the cost price. Answer: B _________________ Jeffery Miller Head of GMAT Instruction GMAT Quant Self-Study Course 500+ lessons 3000+ practice problems 800+ HD solutions Math Revolution GMAT Instructor Joined: 16 Aug 2015 Posts: 5452 GMAT 1: 800 Q59 V59 GPA: 3.82 Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink] ### Show Tags 02 May 2018, 03:01 => Let $$P, R$$ and $$C$$ be the profit, the sales price (revenue) and the cost price of the product, respectively. Then $$P = R – C.$$ Since $$P$$ is $$20$$percent of the sales price, the IVY method tells us that $$P = 20*(\frac{1}{100})*R.$$ So,$$P = (\frac{1}{5})R$$ or$$R = 5P.$$ Plugging this into $$P = R – C$$ yields $$P = 5P – C$$ or $$C = 4P.$$ It follows that $$P = (\frac{1}{4})C$$, and $$P$$ is $$25$$ percent of $$C$$. Therefore, B is the answer. Answer B _________________ MathRevolution: Finish GMAT Quant Section with 10 minutes to spare The one-and-only World’s First Variable Approach for DS and IVY Approach for PS with ease, speed and accuracy. "Only$79 for 3 month Online Course"
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Re: If the profit on a product is 20 percent of its sales price, what perc   [#permalink] 02 May 2018, 03:01
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