Loren bought a roll of cloth and sold it for a 5% profit based on the

Question

Loren bought a roll of cloth and sold it for a 5% profit based on the selling price. If Loren`s profit was $45.5 total on the cloth, how much did it cost her to buy the cloth?

A. $455.
B. $525.5.
C. $675.
D. $810.5.
E. $864.5.

fantaisie · Answer

This is a very good question to practice how not to get tricked by GMAT way of phrasing quant questions. One might simply assume that the selling price is 1.05 * Cost, which is not correct.

If the roll was sold for a 5% profit based on the cost, it means that of the total selling price, 95% was the cost, and 5% was the profit.

Selling price = 5% profit + 95% cost
5% profit = $45.5
 Find:  Cost - ?

Profit: 5% - $45.5
Cost: 95% - x

We cross multiply the values to find x:

x =  (95*45.5)/5  = $864.5

Answer:  E

Divyadisha · Answer

Loren makes 5% profit based on the selling price- So if selling price is 100, her profit is 5 and cost price is 95.

Loren's profit or 5% = 45.5
So 95% will be = 45.5 * 95/ 5= 864.5

E is the answer.

rhine29388 · Answer

Let us assume that selling price of the cloth is $100
5% profit on selling price is $5
So cost price = $95
consider it costs $y for Loren to buy the cloth
$95 cost price <----->$5 profit
$y cost price <---->$45.5 profit

y = $\frac{45.5*95}{5}$ = $864.5

Correct Answer - E

+1 kudos if you like the solution

nayanparikh · Answer

Let x be the cost price of the roll of cloth. Now the cloth is sold at 5% profit i.e.105% of x = 105% * x.
And above value includes the profit of $45.5.
So, 105% * x = x + 45.5
105x = 100x + 4550.
Solving it we get 5x = 910. Now this amount includes profit of 45.5.
Hence 910-45.5 = $864.5.
Solution is E.

ajdse22 · Answer

Good, some learning for me. As others explained, there is a difference between profit based on cost and profit based on selling price.
If there was profit based on cost, then if the cost is 100, selling price is 105.

But this question says if spend = 100, then profit is 5% based on 100. This implies cost = 95. Let us set up a ratio
5/95 = 45.5/x. where x represents the cost. 
solving this we get x = 19*45.5 = 20*45.5-45.5 = 910-45.5 = 914.5 - 50 = 864.5.

Abhishek009 · Answer

Let selling Price be $ 100
So, Profit is $ 5
And Cost price is $ 95

When Profit is 5 ; Cost Price is 95
When Profit is 1 ; Cost Price is  \frac{95}{5} 
When Profit is 45.5 ; Cost Price is  \frac{95}{5} *45.5 => 864.5
  
Hence correct answer must be (E)

0ld · Answer

Let selling price be x

She made 5% profit on sale.

0.05 * X = 45.5

X =  \frac{(45.5 * 100)}{5}  = 9.1 * 100 = 910

Original cost =  910 - 45.5 = 900 -40 + 10 - 45.5 = 864.5

KarishmaB · Answer

The calculation can be done orally:

5% profit on SP is $45.5
So SP = 20*45.5 = $910

Cost Price = 910 - 45.5 = $864.5

bumpbot · Answer

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Loren bought a roll of cloth and sold it for a 5% profit based on the

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