A furniture delaer purchased a desk for $150 and then set

Question

A furniture delaer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40% of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer's gross profit from the purchase of the sale of the desk?

a) 40
b) 60
c) 80
d) 90
e) 100

please show work...thanks.

ranga41 · Answer

E 
150 + 0.4S = S

so S = 250 and profit = 100

edsilver · Answer

I got a) 40

This is because the sale price was the original price of $150.00 plus 40%. Since 40% of $150.00 is $60.00 the total sale price is $210.00. This is a profit of $60 which is a 40% increase over the original purchase price of $150.00.

I don't understand how you guys got E. Can someone please clarify where I went wrong?

thx

chets · Answer

I think you got the wording wrong. The question says "selling price equal to the purchase price  plus a markup that was 40% of the selling price "

Sale price (SP) = 150 + 40 % of SP

SP - .4*SP=150, or SP = 250. and therefore profit = 100.

A furniture delaer purchased a desk for $150 and then set

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