A retailer sold an appliance for 80 dollars. If th... | Free GMAT Practice Question | GMAT Panda

👋 Hi! I'm GMAT Panda. Ask me anything about this question, or click a button below to get started!

A retailer sold an appliance for 80 dollars. If the retailer's gross profit on the appliance was 25 percent of the retailer's cost for the appliance, how many dollars was the retailer's gross profit?

Explanation	Calculations	Help
$We create unknowns for the retailer's cost and the retailer's gross profit$	$C = cost of the appliance P = gross profit on the appliance$	Theory & Tactics Method Card TRANS1-A Click to view full details
$We translate "gross profit on the appliance was 25 percent of the retailer’s cost" into a percentage relationship$	$P = \frac{25}{100} \times C$	Theory & Tactics Method Card TRANS2-A Click to view full details
$We set the selling price equal to the sum of cost and profit$	$80 = C + \frac{25}{100} \times C$
$We combine like terms and solve for C by isolating the variable$	$C + \frac{25}{100} C = 80 \frac{125}{100} C = 80 C = 80 \times \frac{100}{125} = 64$
$We calculate the gross profit by finding 25% of the cost$	$P = \frac{25}{100} \times 64 = \frac{1}{4} \times 64 = 16$	Theory & Tactics Method Card FDPR4-A Click to view full details

Scroll horizontally to view all columns

16

A retailer sold an appliance for 80 dollars. If the retailer's gross profit on the appliance was 25 percent of the retailer's cost for the appliance, how many dollars was the retailer's gross profit?

Explanation	Calculations	Help
$We create unknowns for the retailer's cost and the retailer's gross profit$	$C = cost of the appliance P = gross profit on the appliance$	Theory & Tactics Method Card TRANS1-A Click to view full details
$We translate "gross profit on the appliance was 25 percent of the retailer’s cost" into a percentage relationship$	$P = \frac{25}{100} \times C$	Theory & Tactics Method Card TRANS2-A Click to view full details
$We set the selling price equal to the sum of cost and profit$	$80 = C + \frac{25}{100} \times C$
$We combine like terms and solve for C by isolating the variable$	$C + \frac{25}{100} C = 80 \frac{125}{100} C = 80 C = 80 \times \frac{100}{125} = 64$
$We calculate the gross profit by finding 25% of the cost$	$P = \frac{25}{100} \times 64 = \frac{1}{4} \times 64 = 16$	Theory & Tactics Method Card FDPR4-A Click to view full details

Scroll horizontally to view all columns

16