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The purchase price of an article is $48. In order to include 15% of co

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The purchase price of an article is $48. In order to include 15% of co  [#permalink]

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New post 26 Jan 2016, 02:55
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

54% (01:49) correct 46% (02:26) wrong based on 110 sessions

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Re: The purchase price of an article is $48. In order to include 15% of co  [#permalink]

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New post 26 Jan 2016, 03:29
4
Cost price of article = 48$
% of overhead cost = 15
Net profit = 12 $
We need to calculate % markup
Net profit as % of cost price = (12/48)*100 = 25%
Total markup should be = 25 + 15 = 40%

Answer D
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Re: The purchase price of an article is $48. In order to include 15% of co  [#permalink]

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New post 27 Jan 2016, 22:04
2
Bunuel wrote:
The purchase price of an article is $48. In order to include 15% of cost for overhead and to provide $12 of net profit, the markup should be

A. 15%
B. 25%
C. 35%
D. 40%
E. 45%


My Take:
Indeed it's D) 40 %

C.P. = $48
Overhead Cost = 15 %
Profit = $12
% profit = (12/48)*100 = 25 %
Total Markep = 15 + 25 = 40 %

2nd way :
Overhead = 48*(15/100) = 7.2
Profit = 12
Total Markup value = 7.2 + 12=19.2
% markup= (19.2/48)*100 = 40 %
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Re: The purchase price of an article is $48. In order to include 15% of co  [#permalink]

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New post 23 Apr 2017, 10:52
Skywalker18 wrote:
Cost price of article = 48$
% of overhead cost = 15
Net profit = 12 $
We need to calculate % markup
Net profit as % of cost price = (12/48)*100 = 25%
Total markup should be = 25 + 15 = 40%

Answer D


Is it just me or the language of the question is a bit confusing?
15% of the cost would be included in the gross cost and then there would be a markup of some percent to get a net profit of $12. Or is it that this net profit is to be calculated as a percentage of the original purchase cost. This got me confused. Please help. And sorry if my question is silly.
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Re: The purchase price of an article is $48. In order to include 15% of co  [#permalink]

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New post 23 Apr 2017, 13:12
1
Excellent Question.

Here is what i did in this one =>

Price => $48

12% overhead => 12% of 48
10% of 48=4.8
5% of 48 = 2.4
12% of 48=7.2

Hence overhead add-on => $7.2

Now profit add-on => $12

Total add-on =>7.2+12=> $19.2

Let p be the required percentage.

Hence p/100 * 48=19.2
=192/48 *10 => 40%

SMASH THAT D.

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Re: The purchase price of an article is $48. In order to include 15% of co  [#permalink]

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Re: The purchase price of an article is $48. In order to include 15% of co   [#permalink] 06 Oct 2018, 14:34
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