It is currently 21 Nov 2017, 05:36

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

Events & Promotions in June
Open Detailed Calendar

On a certain item, a discount of x% on the marked price gives a trader

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

Hide Tags

1 KUDOS received
Intern
Intern
avatar
Joined: 22 Jun 2010
Posts: 18

Kudos [?]: 11 [1], given: 1

On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 05 Oct 2011, 06:09
1
This post received
KUDOS
3
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

22% (01:49) correct 78% (02:00) wrong based on 108 sessions

HideShow timer Statistics

On a certain item, a discount of x% on the marked price gives a trader a profit of 2x% on the cost price. Is his profit more than 40% of the cost price?

(1) The marked price is more than 1.8 times the cost price
(2) The marked price is more than 1.7 times the cost price
[Reveal] Spoiler: OA

Kudos [?]: 11 [1], given: 1

1 KUDOS received
Intern
Intern
avatar
Joined: 04 Oct 2011
Posts: 10

Kudos [?]: 30 [1], given: 3

Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 05 Oct 2011, 13:06
1
This post received
KUDOS
On a certain item, a discount of x% on the marked price gives a trader a profit of 2x% on the cost price. Is his profit more than 40% of the cost price?

A. The marked price is more than 1.8 times the cost price
B. The marked price is more than 1.7 times the cost price

Please explain the solution. I am unable to solve this.


discount = x % of marked price
profit 2x % of the cost


take A

marked price more than 1.8 times
so if the Cost price is 100 then marked price = 280

to get more than 40 % profit x should be (41/2) will take it as 42/2 = 21

if x is equal to 42 then the sell price should be more than 142 so that the merchant will get more than 40%
21% of 280 is 61.6
280-61.6 is greater than 142


when you apply the same rule in Statement 2 them it should be 270-59.4

this is also more than 142 so both are right

ANS D

Kudos [?]: 30 [1], given: 3

2 KUDOS received
Math Forum Moderator
avatar
Joined: 20 Dec 2010
Posts: 1965

Kudos [?]: 2097 [2], given: 376

Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 05 Oct 2011, 14:37
2
This post received
KUDOS
gmatblues wrote:
On a certain item, a discount of x% on the marked price gives a trader a profit of 2x% on the cost price. Is his profit more than 40% of the cost price?

A. The marked price is more than 1.8 times the cost price
B. The marked price is more than 1.7 times the cost price

Please explain the solution. I am unable to solve this.


Marked Price: M
Cost Price: C

M-xM=C+2xC
2xC+xM=M-C
x(2C+M)=M-C
x=(M-C)/(2C+M)------------1

Q: Is 2xC>0.4C
OR
Is x>0.2

Substitute 1:
Is (M-C)/(2C+M) > 0.2
M-C>0.4C+0.2M
0.8M>1.4C
M>1.75C

Rephrase: Is M>1.75C?

1. M>1.8C
Sufficient.

2. M>1.7C
Not Sufficient.

Ans: "A"
_________________

~fluke

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 2097 [2], given: 376

Manager
Manager
avatar
Joined: 31 May 2011
Posts: 85

Kudos [?]: 66 [0], given: 4

Location: India
Concentration: Finance, International Business
GMAT Date: 12-07-2011
GPA: 3.22
WE: Information Technology (Computer Software)
Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 08 Oct 2011, 06:03
fluke wrote:
gmatblues wrote:
On a certain item, a discount of x% on the marked price gives a trader a profit of 2x% on the cost price. Is his profit more than 40% of the cost price?

A. The marked price is more than 1.8 times the cost price
B. The marked price is more than 1.7 times the cost price

Please explain the solution. I am unable to solve this.


Marked Price: M
Cost Price: C

M-xM=C+2xC
2xC+xM=M-C
x(2C+M)=M-C
x=(M-C)/(2C+M)------------1

Q: Is 2xC>0.4C
OR
Is x>0.2

Substitute 1:
Is (M-C)/(2C+M) > 0.2
M-C>0.4C+0.2M
0.8M>1.4C
M>1.75C

Rephrase: Is M>1.75C?

1. M>1.8C
Sufficient.

2. M>1.7C
Not Sufficient.

Ans: "A"


Fluke i guess the answer should be D.
The question asks whether profit is more than 40% of CP or not. As you have explained from statement 1 we get the answer as Yes and from statement 2 we get the answer as NO. Hence in both the cases we are getting a unique answer and hence sufficient. As here No is also considered as sufficient to answer the question

Kudos [?]: 66 [0], given: 4

Math Forum Moderator
avatar
Joined: 20 Dec 2010
Posts: 1965

Kudos [?]: 2097 [0], given: 376

Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 08 Oct 2011, 06:56
Sudhanshuacharya wrote:
Rephrase: Is M>1.75C?

1. M>1.8C
Sufficient.

2. M>1.7C
Not Sufficient.

Ans: "A"

Fluke i guess the answer should be D.
The question asks whether profit is more than 40% of CP or not. As you have explained from statement 1 we get the answer as Yes and from statement 2 we get the answer as NO. Hence in both the cases we are getting a unique answer and hence sufficient. As here No is also considered as sufficient to answer the question


Question is:

Is M>1.75C?

1. M>1.8C
Sufficient because 1.8C>1.75C. The answer will always be YES.

2. M>1.7C
Because we just know that M>1.7C, now M can be 1.8C(of course greater than 1.7C), in which case the answer to the question would be Yes OR 1.72C(of course greater than 1.7C), in which case the answer to the question would be No.
So, Not Sufficient.

Unless there is something wrong with my rephrasing, A seems logical.
_________________

~fluke

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 2097 [0], given: 376

Director
Director
User avatar
P
Joined: 05 Mar 2015
Posts: 963

Kudos [?]: 292 [0], given: 41

Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 17 Jun 2016, 20:38
gmatblues wrote:
On a certain item, a discount of x% on the marked price gives a trader a profit of 2x% on the cost price. Is his profit more than 40% of the cost price?

A. The marked price is more than 1.8 times the cost price
B. The marked price is more than 1.7 times the cost price

Please explain the solution. I am unable to solve this.

relationship in markup ,discount & profit is given as
(1+M/100)(1-x/100)=(1+P/100)
where M=markup
X=discount
P=profit.(given profit=2x%)

(1+M/100)(1-x/100)=(1+2X/100)
(100+M)(100-X)/100=(100+2X)
10^4-100X+100M-MX=10^4+200X
100M=200X+MX
100M=X(200+M)
X=100M/(200+M)------(a)
statement(1)
M=1.8CP(cP=cost price)
substituting in (a)
X=180CP/(200+1.8CP)
Let CP=1 then X= 89%
we will get X profit in terms of CP....suff...
similarly Statement(2) also suff..

Ans D

Kudos [?]: 292 [0], given: 41

Manager
Manager
avatar
B
Joined: 23 Jun 2016
Posts: 141

Kudos [?]: 8 [0], given: 44

CAT Tests
Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 11 Nov 2017, 19:41
rohit8865 wrote:
gmatblues wrote:
On a certain item, a discount of x% on the marked price gives a trader a profit of 2x% on the cost price. Is his profit more than 40% of the cost price?

A. The marked price is more than 1.8 times the cost price
B. The marked price is more than 1.7 times the cost price

Please explain the solution. I am unable to solve this.

relationship in markup ,discount & profit is given as
(1+M/100)(1-x/100)=(1+P/100)
where M=markup
X=discount
P=profit.(given profit=2x%)

(1+M/100)(1-x/100)=(1+2X/100)
(100+M)(100-X)/100=(100+2X)
10^4-100X+100M-MX=10^4+200X
100M=200X+MX
100M=X(200+M)
X=100M/(200+M)------(a)
statement(1)
M=1.8CP(cP=cost price)
substituting in (a)
X=180CP/(200+1.8CP)
Let CP=1 then X= 89%
we will get X profit in terms of CP....suff...
similarly Statement(2) also suff..

Ans D


(1+M/100)(1-x/100)=(1+P/100)

I am not sure if we could do this here. I guess it would work if mark up, discounts and profits are all compared to Cost.

The question mentions discount on the "marked price" and profit on the "cost price"

Can someone confirm this understanding?

Kudos [?]: 8 [0], given: 44

VP
VP
avatar
P
Joined: 26 Mar 2013
Posts: 1284

Kudos [?]: 296 [0], given: 165

Reviews Badge CAT Tests
Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 12 Nov 2017, 12:15
gmatblues wrote:
On a certain item, a discount of x% on the marked price gives a trader a profit of 2x% on the cost price. Is his profit more than 40% of the cost price?

A. The marked price is more than 1.8 times the cost price
B. The marked price is more than 1.7 times the cost price

Please explain the solution. I am unable to solve this.


Dear Bunuel

Can you please change the OA. It should be A.

Kudos [?]: 296 [0], given: 165

Intern
Intern
avatar
B
Joined: 28 Dec 2010
Posts: 48

Kudos [?]: 13 [0], given: 7

Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 13 Nov 2017, 04:43
OA is wrong.
The answer would be D.

Let the cost price be 100.
Markup price = 100c

Selling Price= 100(1-x%)
100*(1+2x%) = 100c * (1-x%)
100 + 2x = 100c - cx
x (c+2) = 100 (c-1) ..........eq1

Profit should be > 40%
100(1+2x%) > 40
100 + 2x > 40
x>20

Substitute value of x from above eq.
100(c-1) > 20(c+2)
100c - 100 > 20c + 40
80c>140
c>1.75

Now when markup price is greater than 1.75, trader would make more than 40%.
1. Yes, he would make. Sufficient.
2. No, he wouldn't make. Sufficient.

D.
_________________

_________________________________________
Please Kudos, if you found this post helpful.

Kudos [?]: 13 [0], given: 7

1 KUDOS received
VP
VP
avatar
P
Joined: 26 Mar 2013
Posts: 1284

Kudos [?]: 296 [1], given: 165

Reviews Badge CAT Tests
On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 13 Nov 2017, 04:50
1
This post received
KUDOS
Abhishiek wrote:
OA is wrong.
The answer would be D.

Let the cost price be 100.
Markup price = 100c

Selling Price= 100(1-x%)
100*(1+2x%) = 100c * (1-x%)
100 + 2x = 100c - cx
x (c+2) = 100 (c-1) ..........eq1

Profit should be > 40%
100(1+2x%) > 40
100 + 2x > 40
x>20

Substitute value of x from above eq.
100(c-1) > 20(c+2)
100c - 100 > 20c + 40
80c>140
c>1.75

Now when markup price is greater than 1.75, trader would make more than 40%.
1. Yes, he would make. Sufficient.
2. No, he wouldn't make. Sufficient.

D.


In statement 2 if the price is 1.75 cost or less...Answer would be No

If the price greater than 1.75 cost..answer would yes...(take Any values from statement 1).

In both cases the value is grater than 1.7 as stated so you will have turning point at 1.75............so Insufficient

Kudos [?]: 296 [1], given: 165

Intern
Intern
avatar
B
Joined: 28 Dec 2010
Posts: 48

Kudos [?]: 13 [0], given: 7

Re: On a certain item, a discount of x% on the marked price gives a trader [#permalink]

Show Tags

New post 14 Nov 2017, 00:20
Mo2men wrote:
Abhishiek wrote:
OA is wrong.
The answer would be D.

Let the cost price be 100.
Markup price = 100c

Selling Price= 100(1-x%)
100*(1+2x%) = 100c * (1-x%)
100 + 2x = 100c - cx
x (c+2) = 100 (c-1) ..........eq1

Profit should be > 40%
100(1+2x%) > 40
100 + 2x > 40
x>20

Substitute value of x from above eq.
100(c-1) > 20(c+2)
100c - 100 > 20c + 40
80c>140
c>1.75

Now when markup price is greater than 1.75, trader would make more than 40%.
1. Yes, he would make. Sufficient.
2. No, he wouldn't make. Sufficient.

D.


In statement 2 if the price is 1.75 cost or less...Answer would be No

If the price greater than 1.75 cost..answer would yes...(take Any values from statement 1).

In both cases the value is grater than 1.7 as stated so you will have turning point at 1.75............so Insufficient


Yeah, you are right. Thanks :)
_________________

_________________________________________
Please Kudos, if you found this post helpful.

Kudos [?]: 13 [0], given: 7

Re: On a certain item, a discount of x% on the marked price gives a trader   [#permalink] 14 Nov 2017, 00:20
Display posts from previous: Sort by

On a certain item, a discount of x% on the marked price gives a trader

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


GMAT Club MBA Forum Home| About| Terms and Conditions| 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®.