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A particular store purchased a stock of turtleneck sweaters and marked 29 Feb 2016, 11:00
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82% (02:14) correct 18% (02:41) wrong based on 194 sessions

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A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%
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A particular store purchased a stock of turtleneck sweaters and marked 01 Mar 2016, 05:01
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Bunuel
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%
Show more

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x
Hence total profit = 27.5%
Option A
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A particular store purchased a stock of turtleneck sweaters and marked 10 Jan 2018, 20:41
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Bunuel
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x
Hence total profit = 27.5%
Option A
Show more

Hi
I understood the logic but I would like to know if there is an approach to make your fraction multiplication quicker. I struggle with multiplying and deriving answer in case of successive percentages like 1.07*.85*.55*.......
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A particular store purchased a stock of turtleneck sweaters and marked 10 Jan 2018, 20:54
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Bunuel
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x
Hence total profit = 27.5%
Option A

Hi
I understood the logic but I would like to know if there is an approach to make your fraction multiplication quicker. I struggle with multiplying and deriving answer in case of successive percentages like 1.07*.85*.55*.......
Show more

Hello,

You can solve by using the fractions as they are.

For example in this case 25% increase of 120 is 120*125/100. You can cancel out 125/100 as 5/4. Then you can easily find it as 150.
Similarly for 85% of 150 you can do 150*85/100. Here you can cancel out 150/100 as 3/2. Then 85*3=255 and half of it will be 127.5.
This is how I do. Hope it helps you too. Most of the time this method works. But when GMAT wants to eat our time by making us to multiply unwanted decimals “god help us”.

Posted from my mobile device
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A particular store purchased a stock of turtleneck sweaters and marked 10 Jan 2018, 23:00
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Bunuel
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Assume the total price = 100x
Price after 20% markup = 120x
Price after 25%further markup = 1.25*120x = 150x

Price after the discount = 0.85*150x = 127.5x


Hence total profit = 27.5%
Option A
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you actually can replace x with 1. Also, instead of calculate the number, you can leave the calculation in fractions. The answer is 11 / 40 => A b/c 0.25 < 11/40 < 0.33
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A particular store purchased a stock of turtleneck sweaters and marked 09 Feb 2018, 11:26
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Bunuel
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%
Show more

Bunuel
Can you please explain the solution please.

I am a bit confused by the wording in the question.
It says "it further marked up its prices by 25% of the original retail price"

So shouldn't the equation be \(\frac{(1.2 X + 0.25 X)*0.85}{x}*100 = 123.5\)

Please let me know where did i made the mistake ?

Regards
Dhruv
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A particular store purchased a stock of turtleneck sweaters and marked 10 Feb 2018, 19:40
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DhruvPatelD10
Bunuel
A particular store purchased a stock of turtleneck sweaters and marked up its cost by 20%. During the New Year season, it further marked up its prices by 25% of the original retail price. In February, the store then offered a discount of 15%. What was its profit on the items sold in February?

A. 27.5%
B. 30%
C. 35%
D. 37.5%
E. 40%

Bunuel
Can you please explain the solution please.

I am a bit confused by the wording in the question.
It says "it further marked up its prices by 25% of the original retail price"

So shouldn't the equation be \(\frac{(1.2 X + 0.25 X)*0.85}{x}*100 = 123.5\)

Please let me know where did i made the mistake ?

Regards
Dhruv
Show more


Hey DhruvPatelD10

Assume the cost of the item to be $100. When the product was initially marked up by 20%,
the MRP on the product became 1.2*$100 = $120. Again when this price was marked up
by 25%, this time around the MRP was marked up. So, the final value became 1.25*$120 = $150

To put it into perspective in the equation that you have written,

the equation should be \(\frac{(1.2 X + 0.25(1.2X))*0.85}{x}*100 = 127.5\)

Hope this help you!
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A particular store purchased a stock of turtleneck sweaters and marked 22 Apr 2024, 19:06
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