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%
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%
_________________
GMAT and GRE Tutor
Over 1800 followers
GMATGuruNY at gmail
New York, NY
If you find one of my posts helpful, please take a moment to click on the "Kudos" icon.
Available for tutoring in NYC and long-distance.
For more information, please email me at GMATGuruNY at gmail