It is currently 31 Oct 2020, 10:57

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# A retailer sold toys at a regular selling price of 25%

Author Message
TAGS:
Retired Moderator
Joined: 07 Jun 2014
Posts: 4803
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 173

Kudos [?]: 2977 [0], given: 394

A retailer sold toys at a regular selling price of 25% [#permalink]  27 May 2018, 03:48
Expert's post
00:00

Question Stats:

66% (00:48) correct 33% (01:22) wrong based on 15 sessions
A retailer sold toys at a regular selling price of 25% greater than the retailer’s cost to buy the toys. If the retailer reduces the regular selling price by 80%, what is then the loss on each toy sold as a percent of the retailer’s cost?

(A) 25%
(B) 30%
(C) 40%
(D) 75%
(E) 80%
[Reveal] Spoiler: OA

_________________

Sandy
If you found this post useful, please let me know by pressing the Kudos Button

Try our free Online GRE Test

Retired Moderator
Joined: 07 Jun 2014
Posts: 4803
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 173

Kudos [?]: 2977 [0], given: 394

Re: A retailer sold toys at a regular selling price of 25% [#permalink]  27 May 2018, 12:53
Expert's post
Explanation

For problems that ask for percents and use no real numbers, it is almost always possible to use 100 as a starting number.

Suppose the retailer buys each toy for $100, and thus sells it for a regular price of$125.

A reduction of this regular selling price by 80% drops the price to \$25. The loss on each toy sold as a percent of the retailer’s cost is:

$$\frac{100-25}{100 \times 100}=75%$$

Hence option D is correct!
_________________

Sandy
If you found this post useful, please let me know by pressing the Kudos Button

Try our free Online GRE Test

Re: A retailer sold toys at a regular selling price of 25%   [#permalink] 27 May 2018, 12:53
Display posts from previous: Sort by