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 = 160New Selling Price: NSP = 160 (4/5) ... NSP = 128

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

8 Good question.