GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 21 Nov 2018, 08:36

LIVE NOW!

LBS is Calling R1 Admits - Join Chat Room to Catch the Latest Action


Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
  • All GMAT Club Tests are Free and open on November 22nd in celebration of Thanksgiving Day!

     November 22, 2018

     November 22, 2018

     10:00 PM PST

     11:00 PM PST

    Mark your calendars - All GMAT Club Tests are free and open November 22nd to celebrate Thanksgiving Day! Access will be available from 0:01 AM to 11:59 PM, Pacific Time (USA)
  • Key Strategies to Master GMAT SC

     November 24, 2018

     November 24, 2018

     07:00 AM PST

     09:00 AM PST

    Attend this webinar to learn how to leverage Meaning and Logic to solve the most challenging Sentence Correction Questions.

M07-33

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 50730
M07-33  [#permalink]

Show Tags

New post 15 Sep 2014, 23:36
5
8
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

63% (01:10) correct 37% (00:44) wrong based on 189 sessions

HideShow timer Statistics

A shop purchased a pair of sunglasses for $120 and was selling it at a price that equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price. After some time a shop owner decided to decrease the selling price by 20 percent. What was the shop's gross profit on this sale?

A. $0
B. $2
C. $4
D. $6
E. $8

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 50730
Re M07-33  [#permalink]

Show Tags

New post 15 Sep 2014, 23:36
2
3
Official Solution:

A shop purchased a pair of sunglasses for $120 and was selling it at a price that equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price. After some time a shop owner decided to decrease the selling price by 20 percent. What was the shop's gross profit on this sale?

A. $0
B. $2
C. $4
D. $6
E. $8


Let the markup be \($x\), so \(x\) must be 25% of the selling price, which would be \(120+x\): \(x=0.25(120+x)\). Solving gives \(x=40\). Hence the selling price was \(120+40=160\).

The price after the discount of 20% would be \(160*0.8=128\) and the gross profit on the sale would be: final selling price - cost of the sunglasses = \($128 - $120 = $8\).


Answer: E
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Intern
Intern
User avatar
Joined: 22 Jul 2014
Posts: 21
GMAT 1: 450 Q38 V12
WE: Information Technology (Computer Software)
GMAT ToolKit User
Re: M07-33  [#permalink]

Show Tags

New post 22 Nov 2014, 11:03
hi bunnel,
can you pls explain how the price after discount has come . Especially how 0.8 has come ?
_________________

Failures are stepping stones to success !!!

Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 50730
Re: M07-33  [#permalink]

Show Tags

New post 23 Nov 2014, 06:02
1
1
prashd wrote:
hi bunnel,
can you pls explain how the price after discount has come . Especially how 0.8 has come ?


20% discount from selling price = price - price*0.2 = price(1 - 0.2) = 0.8*price.

Hope it's clear.

Similar questions to practice:
a-furniture-dealer-purchased-a-desk-for-150-and-then-set-th-71633.html
a-photography-dealer-ordered-60-model-x-cameras-to-be-sold-132077.html
a-merchant-purchased-a-jacket-for-60-and-then-determined-104375.html
a-retailer-bought-a-shirt-at-wholesale-and-marked-it-up-130759.html
a-dress-is-marked-up-16-2-3-to-a-final-price-of-140-what-155046.html
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Manager
Manager
avatar
Joined: 13 Sep 2014
Posts: 88
WE: Engineering (Consulting)
Re M07-33  [#permalink]

Show Tags

New post 05 Jan 2015, 10:01
2
I think this question is poor and helpful.
*selling it at a price that equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price.*
This means if CP is 120 then SP = 120+0.25*CP

and by this approach we get ans. 0
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 50730
Re: M07-33  [#permalink]

Show Tags

New post 06 Jan 2015, 01:43
sanket1991 wrote:
I think this question is poor and helpful.
*selling it at a price that equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price.*
This means if CP is 120 then SP = 120+0.25*CP

and by this approach we get ans. 0


Please read the question and the solution carefully. It should be 120 + 0.25*SP = SP --> SP = 160.
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Manager
Manager
avatar
Joined: 20 Jul 2013
Posts: 56
Re: M07-33  [#permalink]

Show Tags

New post 15 Jan 2015, 16:40
7
1
sanket1991 wrote:
I think this question is poor and helpful.
*selling it at a price that equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price.*
This means if CP is 120 then SP = 120+0.25*CP

and by this approach we get ans. 0


Actually, I feel that this question is representative of many of the trickier questions you'd find on the real GMAT ~ one that you need to pay attention to its finer details.

Questions are not posed in the most convenient ways for the test taker --- and when one is stressed and trying to "race" against the clock, it's real easy to miss out on the finer details of a question that "looks" easy.

Cost: 120
Selling Price: SP = 120 + (1/4)SP ---> NOT (1/4 Cost)... SP - (1/4) SP = 120 ... (3/4) SP = 120 ... SP = 160
New Selling Price: NSP = 160 (4/5) ... NSP = 128

Profit = NSP - Cost ----> 128 - 120 = 8

Good question.
Current Student
avatar
Joined: 10 Aug 2014
Posts: 49
GMAT 1: 680 Q49 V34
Reviews Badge
Re: M07-33  [#permalink]

Show Tags

New post 17 Aug 2015, 18:14
Why we calculate discount by multiplying by 0.8 but not dividing by 1.2.
I believe we should have 160/1.2=133.3. Please explain when we divide and when multiply.
Retired Moderator
User avatar
S
Joined: 18 Sep 2014
Posts: 1127
Location: India
GMAT ToolKit User Premium Member Reviews Badge
Re: M07-33  [#permalink]

Show Tags

New post 11 Oct 2015, 07:54
1
1
Bunuel wrote:
A shop purchased a pair of sunglasses for $120 and was selling it at a price that equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price. After some time a shop owner decided to decrease the selling price by 20 percent. What was the shop's gross profit on this sale?

A. $0
B. $2
C. $4
D. $6
E. $8


cost price of glasses is 120$.
Let the selling price be x.
Selling price=\(120+(\frac{25}{100}*Selling price)\)
Selling price=160
this Selling price is decreased by 20%, so Selling price=\(160(1-(\frac{20}{100}))\)=128
Profit=Selling price-Cost price
=128-120
=8
Manager
Manager
avatar
Joined: 17 Mar 2014
Posts: 128
Location: United States
Concentration: Entrepreneurship, Leadership
GPA: 3.97
GMAT ToolKit User Reviews Badge
Re: M07-33  [#permalink]

Show Tags

New post 02 Dec 2015, 15:05
Bunuel wrote:
A shop purchased a pair of sunglasses for $120 and was selling it at a price that equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price. After some time a shop owner decided to decrease the selling price by 20 percent. What was the shop's gross profit on this sale?

A. $0
B. $2
C. $4
D. $6
E. $8



To certain extent - it is confusing. Because "new selling price" should have been mentioned.

I tried to solve by SP = 120 + .25 SP ; .75 SP = 120; Then, with the flow of the question I solved further by setting new SP in this equation itself - .75 * .80SP = 120; which produced incorrect result SP = 200
_________________

KUDOS!!!, I need them too :)

Manager
Manager
User avatar
B
Status: Remember to Always Think Twice
Joined: 04 Nov 2014
Posts: 54
Location: India
GMAT 1: 740 Q49 V40
GPA: 3.51
GMAT ToolKit User Premium Member
Re: M07-33  [#permalink]

Show Tags

New post 19 Jan 2016, 05:44
1
excellent wordplay in the question will get many confused but, it is lucid.
cost price = 120
selling price (SP) = 120 + 0.25*SP --- (this equation is the catch)
Hence 0.75*SP = 120 and hence SP = 160
Final SP = 0.8*SP = 0.8*160 = 128.
Hence a profit of 8$.
_________________

breathe in.. and breathe out!

Manager
Manager
User avatar
Joined: 05 Jul 2015
Posts: 101
Concentration: Real Estate, International Business
GMAT 1: 600 Q33 V40
GPA: 3.3
Re: M07-33  [#permalink]

Show Tags

New post 17 Feb 2016, 12:58
Tricky wording. I should've known answer A was too easy!

"equaled the purchase price of the sunglasses plus a markup that was 25 percent of the selling price." Is two equations.
SellingPrice = 120 + Markup
Markup= 1/4(SellingPrice)

SellingPrice = 120+ (SellingPrice/4) = 3/4SellingPrice = 120 = SellingPrice = $160

160*(4/5) = 128

Profit = Selling - Cost

E. $8
Intern
Intern
avatar
Joined: 23 Apr 2016
Posts: 22
Location: Finland
Concentration: General Management, International Business
GPA: 3.65
Premium Member
Re: M07-33  [#permalink]

Show Tags

New post 06 Sep 2016, 11:51
I would say nice question... caught me off guard with the wording...
Intern
Intern
avatar
B
Joined: 17 Dec 2016
Posts: 13
Location: United States (NY)
Concentration: Sustainability
GPA: 3.76
WE: Other (Military & Defense)
GMAT ToolKit User
Re M07-33  [#permalink]

Show Tags

New post 25 Jul 2017, 18:06
I think this is a high-quality question and I agree with explanation.
Intern
Intern
avatar
B
Joined: 07 Sep 2017
Posts: 1
Re M07-33  [#permalink]

Show Tags

New post 05 Nov 2017, 15:45
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate. 120 * 1.25 =150
25% of 120= 30; 120+30= 150
Not sure how you reached 40%

150*.8=120. The answer would be 0
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 50730
Re: M07-33  [#permalink]

Show Tags

New post 05 Nov 2017, 20:13
Rigatoni wrote:
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate. 120 * 1.25 =150
25% of 120= 30; 120+30= 150
Not sure how you reached 40%

150*.8=120. The answer would be 0


Please re-read the discussion above or check another thread here: https://gmatclub.com/forum/a-shop-purch ... 39958.html

Hope it helps.
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Intern
Intern
avatar
Joined: 15 Apr 2018
Posts: 1
Re: M07-33  [#permalink]

Show Tags

New post 30 May 2018, 16:49
Bunuel, are you sure that this is a 700 question?
Manager
Manager
avatar
B
Joined: 14 Aug 2012
Posts: 93
GMAT 1: 620 Q43 V33
Premium Member CAT Tests
Re: M07-33  [#permalink]

Show Tags

New post 04 Nov 2018, 09:18
I still don't understand how $160 is determined as the selling price. Here we have $120 as the cost and 25% markup of the selling price, which is independent? Also in the explanation 120+x120+x: x=0.25(120+x)

How do you treat the x:x? Explanation is confusing
GMAT Club Bot
Re: M07-33 &nbs [#permalink] 04 Nov 2018, 09:18
Display posts from previous: Sort by

M07-33

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Moderators: chetan2u, Bunuel



Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.