GRE Prep 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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Suits at a local clothing store are discounted 20 percent.
[#permalink]
18 Oct 2017, 22:50
18 Oct 2017, 22:50
1
Bookmarks
00:00
Question Stats:
92% (01:49) correct
7% (03:50) wrong based on 26 sessions
Hide Show timer Statistics
Suits at a local clothing store are discounted 20 percent. Despite the discount, the store owner enjoys a net profit (discount price minus cost) equal to 60 percent of the cost of the suits. If the suits cost the clothing store owner $200 each, what was the prediscount retail price of each suit?
(A) $300
(B) $400
(C) $500
(D) $600
(E) $700
Kudos for correct solution.
(A) $300
(B) $400
(C) $500
(D) $600
(E) $700
Kudos for correct solution.
Re: Suits at a local clothing store are discounted 20 percent.
[#permalink]
19 Oct 2017, 00:31
19 Oct 2017, 00:31
1
The profits are equal to 60% of 200, i.e. 0.6*200 = 120. Then, since profits are equal to discounted price minus cost, we can write an equation as \(120 = (1-0.2)x - 200\) and x results to be equal to 400. Answer B
Re: Suits at a local clothing store are discounted 20 percent.
[#permalink]
19 Oct 2017, 01:37
19 Oct 2017, 01:37
3
1
Bookmarks
Bunuel wrote:
Suits at a local clothing store are discounted 20 percent. Despite the discount, the store owner enjoys a net profit (discount price minus cost) equal to 60 percent of the cost of the suits. If the suits cost the clothing store owner $200 each, what was the prediscount retail price of each suit?
(A) $300
(B) $400
(C) $500
(D) $600
(E) $700
Kudos for correct solution.
(A) $300
(B) $400
(C) $500
(D) $600
(E) $700
Kudos for correct solution.
There is another approach, if it is difficult to lay down the algebraic equation.
Its given profit is 60%of cost price. and cost price of suit is $200
i.e profit = 60% of 200 = 120
i.e SP = 200 + 120 =320
Now look into the option, it is always better to start with option C.
option C = 500
i.e 500 * 20% = 100 i.e SP = 500 - 100 =400, which is way too high
Option B
i.e 400 *20% = 80 i.e SP = 400 -80 =320, which is our answer
