Question

A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 40 percent of the selling price. If the dealer sold the desk at the selling price, what was the amount of the dealer’s gross profit from the purchase and the sale of the desk?

(A) $40
(B) $60
(C) $80
(D) $90
(E) $100

Answer 1

Given:

Purchased a desk for $150

Markup price = 40% of Selling Price

Now, let's assume the selling price to be "x"

Selling Price = Purchase price + Markup price

Selling Price = $150 + 0.4×(x)

x = 150 + 0.4x

0.6x = 150

x = $250

∴ Profit = Selling price - Purchasing price

Profit = $100