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GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2508
Given Kudos: 1053
GPA: 3.39
An electronics store purchased a CD player at a wholesale price of 60$
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03 Apr 2022, 02:39
03 Apr 2022, 02:39
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An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the wholesale price of the CD player, what was the store's profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
An electronics store purchased a CD player at a wholesale price of 60$
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03 Apr 2022, 11:53
03 Apr 2022, 11:53
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GeminiHeat wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the wholesale price of the CD player, what was the store's profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
Since the answer choices are PERCENTS, the given wholesale price can be ignored.
We can plug in ANY VALUES that satisfy the relationships in the prompt.
No matter what values we plug in, \(\frac{profit}{retail-price}\) will be the same in each case.
Let the retail price = 100.
Since the CD player was sold at a 40% discount, the selling price = 60.
Since the $60 selling price enables the store to make a 25% profit on the wholesale price, the $60 selling price is 125% \(= \frac{5}{4}\) of the wholesale price:
\(60 = \frac{5}{4}W\)
\(240 = 5W\)
\(W = 48\)
Profit = (selling price) - (wholesale price) = 60-48 = 12.
Thus:
\(\frac{profit}{retail-price} = \frac{12}{100} =\) 12%
Show: ::
B
Re: An electronics store purchased a CD player at a wholesale price of 60$
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04 Apr 2022, 00:05
04 Apr 2022, 00:05
GeminiHeat wrote:
An electronics store purchased a CD player at a wholesale price of 60$ and then sold it at a 40 percent discount off the original retail price. If the store made a 25 percent profit on the wholesale price of the CD player, what was the store's profit as a percent of the original retail price?
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
A. 10%
B. 12%
C. 15%
D. 18%
E. 20%
There is a faster approach to this question.
The store purchased at 60$ and made a 25 percent profit when they sold it. So 60+(0.25)60=75
75 is the 40 percent discounted price of the original retail price. So x-(0.6)x=75, so x=125
The profit 25 is 12 percent of retail price 125. Option B
