A retailer’s selling price of $1500$...... | Free GMAT Practice Question | GMAT Panda

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A retailer’s selling price of 1500 dollars for a batch of smartphone cases results in a profit of 25% over the retailer’s cost. What selling price would yield a profit of 40% of the cost?

Explanation	Calculations	Help
$We first name an unknown to represent the retailer's cost for the batch of smartphone cases.$	$C = retailer’s cost for the batch of smartphone cases$	Theory & Tactics Method Card TRANS1-A Click to view full details
$We translate "selling price of 1500" minus the cost equals "profit of 25 percent of the cost" .$	$1500 - C = \frac{25}{100} \times C$	Theory & Tactics Method Card TRANS1-B Click to view full details Theory & Tactics Method Card TRANS2-A Click to view full details
$We isolate the cost by combining like terms on one side.$	$1500 = 1.25 \times C$	Theory & Tactics Method Card EQUA1-A Click to view full details
$We solve for the retailer's cost by dividing both sides by 1.25 and simplifying.$	$C = \frac{1500}{1.25} = \frac{1500 \times 100}{125} = \frac{125 \times 12 \times 100}{125} = 1200$	Theory & Tactics Method Card EQUA1-A Click to view full details
$We translate "profit of 40 percent of the cost" into the new selling price formula.$	$New SP = C + \frac{40}{100} \times C = 1.4 \times C$	Theory & Tactics Method Card TRANS2-D Click to view full details
$We substitute the cost into the formula and break down the multiplication.$	$New SP = 1.4 \times 1200 = 1200 + 0.4 \times 1200 = 1200 + (4 \times 120) = 1200 + 480 = 1680$	Theory & Tactics Method Card CALC2-D Click to view full details

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C

A retailer’s selling price of 1500 dollars for a batch of smartphone cases results in a profit of 25% over the retailer’s cost. What selling price would yield a profit of 40% of the cost?

Explanation	Calculations	Help
$We first name an unknown to represent the retailer's cost for the batch of smartphone cases.$	$C = retailer’s cost for the batch of smartphone cases$	Theory & Tactics Method Card TRANS1-A Click to view full details
$We translate "selling price of 1500" minus the cost equals "profit of 25 percent of the cost" .$	$1500 - C = \frac{25}{100} \times C$	Theory & Tactics Method Card TRANS1-B Click to view full details Theory & Tactics Method Card TRANS2-A Click to view full details
$We isolate the cost by combining like terms on one side.$	$1500 = 1.25 \times C$	Theory & Tactics Method Card EQUA1-A Click to view full details
$We solve for the retailer's cost by dividing both sides by 1.25 and simplifying.$	$C = \frac{1500}{1.25} = \frac{1500 \times 100}{125} = \frac{125 \times 12 \times 100}{125} = 1200$	Theory & Tactics Method Card EQUA1-A Click to view full details
$We translate "profit of 40 percent of the cost" into the new selling price formula.$	$New SP = C + \frac{40}{100} \times C = 1.4 \times C$	Theory & Tactics Method Card TRANS2-D Click to view full details
$We substitute the cost into the formula and break down the multiplication.$	$New SP = 1.4 \times 1200 = 1200 + 0.4 \times 1200 = 1200 + (4 \times 120) = 1200 + 480 = 1680$	Theory & Tactics Method Card CALC2-D Click to view full details

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C