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Difficulty:
55%
(hard)
Question Stats:
68% (03:01) correct
32%
(03:00)
wrong
based on 136
sessions
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Items are sold by a retailer for a price of $30 each, which represents a 20 percent markup over the cost paid by the retailer for each item. Of 50 items ordered, 30 are sold, and 10 are returned to the manufacturer for a refund of 40 percent of the dealer's initial cost. If the remaining inventory is sold, what is the retailer's approximate profit or loss as a percent of the retailer's initial cost for the 50 items?
A. 8% loss
B. 4% loss
C. 8% profit
D. 4% profit
E. 12% profit
A. 8% loss
B. 4% loss
C. 8% profit
D. 4% profit
E. 12% profit
Archit3110
Major Poster
Updated on: 21 Aug 2019, 06:18
Originally posted by Archit3110 on 21 Aug 2019, 02:13.
Last edited by Archit3110 on 21 Aug 2019, 06:18, edited 1 time in total.
Last edited by Archit3110 on 21 Aug 2019, 06:18, edited 1 time in total.
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Bunuel
SP of item ; 30$
and CP of item ; 30/1.2 ; 25$ of 50 items; 1250$
SP of 40 items; 40*12 ;$ 1200
refund is @ .4*25 ; 10$ * 10 items; 100 $ which is added to 1200 ; 1300 $
so net ∆ ; 1300-1250/1250 ; ~4% profit
IMO D
Bunuel
Given:
1. Items are sold by a retailer for a price of $30 each, which represents a 20 percent markup over the cost paid by the retailer for each item.
2. Of 50 items ordered, 30 are sold, and 10 are returned to the manufacturer for a refund of 40 percent of the dealer's initial cost.
3. The remaining inventory is sold
Asked: What is the retailer's approximate profit or loss as a percent of the retailer's initial cost for the 50 items?
1. Items are sold by a retailer for a price of $30 each, which represents a 20 percent markup over the cost paid by the retailer for each item.
Cost price of each item = $30/1.2 = 25
Total cost price of 50 items = 50 * $25 = $1250
2. Of 50 items ordered, 30 are sold, and 10 are returned to the manufacturer for a refund of 40 percent of the dealer's initial cost (40%*25=$10).
3. The remaining inventory is sold
Total Sales = 30 * $30 +10* $10 + 10 *$30 = $1300
Total profit = Total sales - Total Costs = $1300 - $1250 = $50
The retailer's approximate profit or loss as a percent of the retailer's initial cost for the 50 items = $50/(50*25) = (5000/1250)% = 4%
IMO D
