GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

It is currently 26 Feb 2020, 09:06

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

When the cost of an article increases by $170, a trader increases his

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 61508
When the cost of an article increases by $170, a trader increases his  [#permalink]

Show Tags

New post 16 Jan 2020, 01:38
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

57% (02:14) correct 43% (01:53) wrong based on 23 sessions

HideShow timer Statistics

When the cost of an article increases by $170, a trader increases his selling price by 10%. Because of these changes his profit percentage decreases from 20% to 15%. What is the cost price of the article after the increase?

A. $980
B. $1,150
C. $1,200
D. $1,250
E. $1,320


Are You Up For the Challenge: 700 Level Questions

_________________
Math Expert
avatar
V
Joined: 02 Aug 2009
Posts: 8257
Re: When the cost of an article increases by $170, a trader increases his  [#permalink]

Show Tags

New post 16 Jan 2020, 02:10
1
1
Bunuel wrote:
When the cost of an article increases by $170, a trader increases his selling price by 10%. Because of these changes his profit percentage decreases from 20% to 15%. What is the cost price of the article after the increase?

A. $980
B. $1,150
C. $1,200
D. $1,250
E. $1,320


Are You Up For the Challenge: 700 Level Questions


Let the cost price and selling price initially be \(c_1\) and \(s_1\), and later after increase be \(c_2\) and \(s_2\).
profit initially =20%=\(0.2c_1=s_1-c_1......s_1=1.2c_1\)
profit later after increase =15%=\(0.15c_2=s_2-c_2.........s_2=1.15c_2\)
Now..\(s_2=1.1s_1\)..and..\(c_2=c_1+170\), so \(1.1s_1=1.15(c_1+170).........1.1(1.2c_1)=1.15(c_1+170)......132c_1=115c_1=115*170.......17c_1=115*170...c_1=1150...c_2=c_1+170=1150+170=1320\)

E
_________________
Director
Director
avatar
P
Joined: 25 Jul 2018
Posts: 573
When the cost of an article increases by $170, a trader increases his  [#permalink]

Show Tags

New post 17 Jan 2020, 11:33
Cost price ———x——x+170———
Selling price —1.2x——1.32x———
(——————-20%——10%———)

Now, the profit percentage is 15%.

--> \(\frac{115}{100}*(x+170) = (\frac{132}{100})*x\)

—> 115x+ 115*170 = 132x
17x = 115*170
—> x= 1150
Cost price after the increase = 1150+ 170 = 1320

The answer is E.

Posted from my mobile device
Director
Director
User avatar
V
Joined: 28 Jul 2016
Posts: 879
Location: India
Concentration: Finance, Human Resources
Schools: ISB '18 (D)
GPA: 3.97
WE: Project Management (Investment Banking)
Reviews Badge
Re: When the cost of an article increases by $170, a trader increases his  [#permalink]

Show Tags

New post 17 Jan 2020, 18:39
Old C.P = c
Old S.P = s
given
\(\frac{s-c}{c }= \frac{20}{100}\)
or
5s = 6c ----- eq (1)

new \(SP = s^#\)
new \(CP = c^#\)
given
\( s^# - c^#/ c^# = 15/100\)
or
\(20 s^# = 23 c^#\) ---- eq (2)

also \( s^# = 11/10 s\)
and \(c^# = c +170\)
substitute back in equation 2 from 1 and given above props

\(\frac{20*11}{ 10 } * 6c = 23 (c+170)\)
17 c = 23 *170*5
or c = 1150
and \(c^# = c +170\)

Thus \(c^# = 1150+170 = 1320\)
E
_________________

Keep it simple. Keep it blank
GMAT Club Bot
Re: When the cost of an article increases by $170, a trader increases his   [#permalink] 17 Jan 2020, 18:39
Display posts from previous: Sort by

When the cost of an article increases by $170, a trader increases his

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne