Bunuel wrote:
pgmat wrote:
A photography dealer ordered 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?
A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit
A. 7% loss
B. 13% loss
C. 7% profit
D. 13% profit
E. 15% profit
Total cost 60*($250/1.2)=50*250;
# of cameras sold is 60-6=54 total revenue is 54*250;
# of cameras returned is 6 total refund 6*(250/1.2)*0.5;
So, total income 54*250+ 6*(250/1.2)*0.5
The dealer's approximate profit is (54*250+ 6*(250/1.2)*0.5-50*250)/(50*250)*100=13%
Answer: D.
this must be kind of awkward question but i got no option other than asking you.
20% markup over the dealer’s initial cost for each camera- I made a wrong assumption , but reducing 20%from 250 & got 200 as an initial cost for each. please explain that "Total cost 60*($250/1.2)=50*250;"