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

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New post 30 Apr 2018, 01:33
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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?

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

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Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink]

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New post 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
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Concentration: Operations, Marketing
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Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink]

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New post 30 Apr 2018, 03:22
Profit= 1/5 (SP)
SP = CP + Profit
CP= 4/5 SP
Profit/CP = 1/4
= 25%
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Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink]

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New post 30 Apr 2018, 11:16
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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
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Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink]

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New post 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
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Expert Post
Math Revolution GMAT Instructor
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Joined: 16 Aug 2015
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Re: If the profit on a product is 20 percent of its sales price, what perc [#permalink]

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New post 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
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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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