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The purchase price of an article is $48. In order to include 15% of co 26 Jan 2016, 02:55
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D
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65% (hard)

Question Stats:

60% (01:57) correct 40% (02:21) wrong based on 488 sessions

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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%
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D
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The purchase price of an article is $48. In order to include 15% of co 26 Jan 2016, 03:29
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Cost price of article = 48$
% 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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The purchase price of an article is $48. In order to include 15% of co 27 Jan 2016, 22:04
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Bunuel
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%
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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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The purchase price of an article is $48. In order to include 15% of co 23 Apr 2017, 10:52
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Skywalker18
Cost price of article = 48$
% 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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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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The purchase price of an article is $48. In order to include 15% of co 23 Apr 2017, 13:12
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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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The purchase price of an article is $48. In order to include 15% of co 08 May 2021, 21:49
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Purchase Price: $48

Include 15% of the cost for overhead: \(\frac{115}{100} * 48 = $55.2\)

Provide $12 of net profit: $55.2 + 12 = $67.2

Marked price is up by: \(\frac{67.2 - 48 }{ 48} * 100 = 40%\)

Answer D
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The purchase price of an article is $48. In order to include 15% of co 03 Aug 2025, 11:55
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I got confused with the wording as well in that I assumed the purchase price of 48 is the final price and includes the markups of 15% and 12 dollars. So the equation would look like this if x denoted the original price: 0.15x + 12 + x = 48.

Obviously this is wrong and you have to assume that the purchase price is the starting point to which you are looking to add those mark ups. Under that assumption, the question becomes incredibly simple.

ShashankDave
Skywalker18
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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The purchase price of an article is $48. In order to include 15% of co 06 Aug 2025, 09:44
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15% of 48 = 7.2
profit = $12
CP = $48
profit = (SP-7.2) - CP ......... [The markup should include 15% of CP ]
12 = SP - 7.2 - 48
60 = SP - 7.2
SP = 67.2

question asks SP (also Markup Price) = ?% of CP
67.2 = x% of 48
solve for x you get 140%
i.e 40% Markup over cost
D
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The purchase price of an article is $48. In order to include 15% of co 12 Aug 2025, 09:50
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May I know if such questions may still come up in GMAT Focus Edition? Wording here really confused me...
Bunuel
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%
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