Patrick purchased 80 pencils and sold them at a loss

Question

Patrick purchased 80 pencils and sold them at a loss equal to the selling price of 20 pencils. The cost of 80 pencils is how many times the selling price of 80 pencils?

(A) 0.75
(B) 0.8
(C) 1
(D) 1.2
(E) 1.25

Source: Math bible Nova

Bunuel · Accepted Answer

Say the cost price of 80 pencils was $80 ($1 per pencil) and the selling price of 1 pencil was p.

Selling at a loss: 80 - 80p = 20p --> p = 4/5.

(cost price)/(selling price) = 1/(4/5) = 5/4 = 1.25.

Answer: E.

PareshGmat · Answer

Let cost price of 80 pencils = 80c

Let selling price of 80 pencils = 80s ............ (1)

Pencils sold at a loss equal to the selling price of 20 pencils

80c - 80s = 20s

80c = 100s

s = \frac{4c}{5}

Selling price of 80 pencils  = 80 * \frac{4c}{5} = 64c  ........... From (1)

Require to find

Cost of 80 pencils = How many times Selling Price of 80 pencils

80c = 64c x ???

Answer  = \frac{80}{64} = \frac{5}{4} = 1.25

Answer = E

DensetsuNo · Answer

selling price = p 
 cost = c

since we have incurred a loss equal to the cost of 20 pencils

80p-80c=20c 
 80p=100c 
and given that the problem is asking us how many times the cost is equal to the selling price

we can calculate p:

p = \frac{100}{80} c  or ->  p = \frac{5}{4} c  ->  p = 1,25 c

or Answer (E)

ScottTargetTestPrep · Answer

We can let c = the cost per pencil and p = the selling price per pencil; thus:

80p - 80c = -20p

100p = 80c

The problem is asking for the ratio of 80c to 80p. Since 80c = 100p, 80c/80p = 100p/80p = 10/8 = 5/4 = 1.25.

Answer: E

GMATGuruNY · Answer

Since the two blue values above are equal, the given question stem is the same as the following: 
The cost of EACH PENCIL is how many times the selling price of EACH PENCIL?

Let the selling price of each pencil = $1. 
Thus, the selling price of 80 pencils = $80.

Since Patrick's loss is equal to the selling price of 20 pencils, we get: 
Loss = 20*1 = 20.

Since the 80 pencils are sold for $80 at a loss of $20, Patrick's cost for the 80 pencils must be $100. 
Since 80 pencils have a total cost of $100, the cost per pencil  = \frac{100}{80} = \frac{5}{4} = 1.25 .

Resulting ratio: 
 \frac{cost-per-pencil}{selling-price-per-pencil} = \frac{1.25}{1} = 1.25 .

E

KSBGC · Answer

loss = cp - sp

sp of 20 pencils = cp of 80 pencils - sp of 80 pencils

sp of 20 pencils + sp of 80 pencils = cp of 80 pencils

sp of 100 pencils = cp of 80 pencils.

Cp = 100

sp = 80.

Question : The cost of 80 pencils is how many times the selling price of 80 pencils

cost price of 80 pencils = 80

sp of 80 pencils:

sp of 100 pencils 80

sp of 1 pencil 80 /100

sp of 80 pencil 80 * 80 / 100 = 64.

So, selling price of 80 pencils = 64

80/ 64 = 1.25.

The best answer is E.

Twinklegowani · Answer

Let the cost price of 80 pencils be C.P
And revenue from selling 80 pencils be S.P

Loss = (20/80)*S.P = 0.25 S.P ... eq1
and we know loss = C.P - S.P ..... eq2

C.P - S.P = 0.25 S.P
C.P = 1.25 S.P

Therefore C.P. is 1.25 times the S.P.
Answer E

bumpbot · Answer

Automated notice from GMAT Club BumpBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.

Patrick purchased 80 pencils and sold them at a loss

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

GMAT Problem Solving (PS) Questions

Patrick purchased 80 pencils and sold them at a loss

Prep Toolkit

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