Profit without the discount?

Question

A merchant sells an item at a 20% discount, but still makes a gross profit of 20 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?

A) 20%
B) 40%
C) 50%
D) 60%
E) 75%

A) 20% 
B) 40% 
C) 50% 
D) 60% 
E) 75%

subhashghosh · Answer

merchant-sells-item-discount-52300.html

abcd12345 · Answer

original SP = X
Cost =C
current selling price = .8x ( 20% discount)
.8x = 1.2C (20% profit)
x= 1.2/.8 *C
x= 3/2 C
Original selling price is 1.5C which is 50% profit

KarishmaB · Answer

I am not a fan of formulas but this one makes dealing with mark-up discount questions really easy (plus, it's an intuitive formula) (1 + m/100)*(1 - d/100) = (1 + p/100) Check out its explanation at https://www.gmatclub.com/forum/veritas-prep-resource-links-no-longer-available-399979.html#/2011/0 ... nt-profit/ (1 + m/100) * (1 - 20/100) = (1 + 20/100) m = 50% Since mark up is 50%, if the item is sold without discount, the profit will be 50%. (Say I buy something for $100 and mark it up 50% to $150. If I sell it for $150, I will make a 50% profit)

Profit without the discount?

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards