Source: Official Guide for the GMAT 13th Ed. Problem Solving; #182 Official Guide for the GMAT 2015 14th Ed. Problem Solving; #182

3

A photography dealer order 60 model X

A photography dealer order 60 model X cameras to be sold for $250 each, which represents a 20 percent markup over the dealer's initial cost for each camera. Of the cameras ordered, 6 were never sold and were returned to the manufacturer for a refund of 50 percent of the dealer's initial cost. What was the dealer's approximate profit or loss as a percent of the dealer's initial cost for the 60 cameras?

3 Explanations

1

Charles Swartz

Thanks for the video magoosh! I have one suggestion. The multiplication is a little unnecessary in regards to the $250. Because we know this number will end up in the numerator and denominator, we know that at the end of the problem it will cancel out. It may be easier to just call the price "p". --> Revenue/Cost = [54p+(3/1.2)p]/(60p/1.2) = 56.5/50 --> Profit/Cost = 6.5/50 --> 6.5*2=13 : )

Mar 11, 2016 • Comment

Cydney Seigerman, Magoosh Tutor

Thanks for your message! We're glad to hear that you appreciate the video explanation, and thank you for sharing your alternative approach! Great job with this question :)

Mar 14, 2016 • Reply

1

Maria Chernaya

I like your technique of leaving the cost of one camera as a fraction of 250 over 1.2. I actually did it a little differently. I turned 120/100 into a fraction of 6/5 and calculated the cost of 1 camera as 250*(5/6). That also makes it very easy to calculate the cost of 60 cameras. You would have x=250 * 5/6 (60).

Oct 26, 2015 • Comment

Sam Kinsman, Magoosh Tutor

Yes, that works as well. Nice job Maria!

Nov 9, 2015 • Reply

1

Gravatar Mike McGarry, Magoosh Tutor

Dec 28, 2013 • Comment

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