It is currently 15 Dec 2017, 04:28

# Decision(s) Day!:

CHAT Rooms | Wharton R1 | Stanford R1 | Tuck R1 | Ross R1 | Haas R1 | UCLA R1

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The manufacturer’s suggested retail price (MSRP) of a certain item is

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 42620

Kudos [?]: 135707 [0], given: 12706

The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

30 Sep 2014, 07:14
Expert's post
4
This post was
BOOKMARKED
00:00

Difficulty:

65% (hard)

Question Stats:

62% (01:33) correct 38% (01:40) wrong based on 276 sessions

### HideShow timer Statistics

The manufacturer’s suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A? A.$0
B. $0.63 C.$1.80
D. $1.89 E.$2.10
[Reveal] Spoiler: OA

_________________

Kudos [?]: 135707 [0], given: 12706

SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1849

Kudos [?]: 2790 [6], given: 193

Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: The manufacturer’s suggested retail price (MSRP) of a certain item [#permalink]

### Show Tags

30 Sep 2014, 17:56
6
KUDOS
1
This post was
BOOKMARKED
MSRP = 60

Price at Store A $$= 60 * \frac{120}{100} = 72$$

Price at Store B $$= 60 * \frac{130}{100} * \frac{90}{100} = 70.2$$

Difference = 72.0 - 70.2 = 1.8

Sales tax applicable = 5% on both

= 1.8 + 0.09 = 1.89

_________________

Kindly press "+1 Kudos" to appreciate

Kudos [?]: 2790 [6], given: 193

Manager
Joined: 03 Jun 2015
Posts: 86

Kudos [?]: 59 [0], given: 2

Re: The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

25 Jan 2016, 23:34
Bunuel wrote:
The manufacturer’s suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A? A.$0
B. $0.63 C.$1.80
D. $1.89 E.$2.10

This question is almost same, except for the last part of the question. Source: ManhattanPrep
The manufacturer’s suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, how much more will someone pay in sales tax to purchase the item at Store A? A)$0
B)$0.09 C)$0.18
D)$0.30 E)$1.80
_________________

Sortem sternit fortem!

Kudos [?]: 59 [0], given: 2

Intern
Joined: 20 Aug 2015
Posts: 13

Kudos [?]: 8 [0], given: 4

GMAT 1: 710 Q49 V37
The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

05 Apr 2016, 18:17
1
This post was
BOOKMARKED
Sash143 wrote:
Bunuel wrote:
The manufacturer’s suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A? A.$0
B. $0.63 C.$1.80
D. $1.89 E.$2.10

This question is almost same, except for the last part of the question. Source: ManhattanPrep
The manufacturer’s suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, how much more will someone pay in sales tax to purchase the item at Store A? A)$0
B)$0.09 C)$0.18
D)$0.30 E)$1.80

The last part asks to calculate the difference in sales tax amount i.e [ 5% of purchase price at store A - 5% of purchase price at store B ]
After basic calculations one can easily find the purchase prices at store A and B.

The purchase price at store A = 72
Sales tax amount at store A = 5% of 72 = 3.60
The purchase price at store B = 70.2
Sales tax amount at store B = 5% of 70.2 = 3.51
5% of purchase price at store A - 5% of purchase price at store B = 3.60-3.51 = 0.09 (Ans)

Kudos [?]: 8 [0], given: 4

Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7800

Kudos [?]: 18133 [0], given: 236

Location: Pune, India
Re: The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

05 Apr 2016, 22:45
Bunuel wrote:
The manufacturer’s suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A? A.$0
B. $0.63 C.$1.80
D. $1.89 E.$2.10

Since everything increases/decreases in percentage terms, another method is to assume price as 100 and then multiply the final answer by 3/5 to adjust for 60.

Store A price = 100 + 20 = 120
Store B price = 100 + 30 - 13 = 117

Difference after incorporating sales tax and adjusting for 60 = 3 * (105/100) ( 3/5) = 189/100 = $1.89 Answer (D) _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

Veritas Prep Reviews

Kudos [?]: 18133 [0], given: 236

Intern
Joined: 17 Jan 2015
Posts: 38

Kudos [?]: 5 [0], given: 508

Location: India
GMAT 1: 620 Q42 V34
GMAT 2: 710 Q49 V38
The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

07 Aug 2016, 05:28
Hi Bunuel, VeritasprepKarishma,

I did not understand this part of the question: "what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A?" What is the 'total cost' referring to?

Kudos [?]: 5 [0], given: 508

Board of Directors
Status: Aiming MBA
Joined: 18 Jul 2015
Posts: 2865

Kudos [?]: 972 [1], given: 71

Location: India
Concentration: Healthcare, Technology
GPA: 3.65
WE: Information Technology (Health Care)
Re: The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

07 Aug 2016, 05:54
1
KUDOS
pallaviisinha wrote:
Hi Bunuel, VeritasprepKarishma,

I did not understand this part of the question: "what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A?" What is the 'total cost' referring to?

Total cost here is referring to the final price of A and B after applying the sales/taxes.
_________________

How I improved from V21 to V40! ?

Kudos [?]: 972 [1], given: 71

Intern
Joined: 17 Jan 2015
Posts: 38

Kudos [?]: 5 [0], given: 508

Location: India
GMAT 1: 620 Q42 V34
GMAT 2: 710 Q49 V38
Re: The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

07 Aug 2016, 06:00
Thank you, abhimahna. I guess I was confusing it with cost price.

Kudos [?]: 5 [0], given: 508

Non-Human User
Joined: 09 Sep 2013
Posts: 14835

Kudos [?]: 287 [0], given: 0

Re: The manufacturer’s suggested retail price (MSRP) of a certain item is [#permalink]

### Show Tags

15 Nov 2017, 06:59
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

Kudos [?]: 287 [0], given: 0

Re: The manufacturer’s suggested retail price (MSRP) of a certain item is   [#permalink] 15 Nov 2017, 06:59
Display posts from previous: Sort by