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 Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

A car dealership sold two cars [#permalink]
29 Aug 2010, 15:40

00:00

A

B

C

D

E

Difficulty:

5% (low)

Question Stats:

57% (01:30) correct
43% (00:57) wrong based on 7 sessions

A car dealership sold two cars: the first car at a 10% profit and the second car at a 10% loss, which gave them an overall profit margin of 5% from these two sales. If the dealership's total profit was $1000, what was the sale price of each car?

$5,000 and $1,000 $9,000 and $5,000 $11,000 and $9,000 $15,000 and $5,000 $20,000 and $10,000

Re: A car dealership sold two cars [#permalink]
29 Aug 2010, 17:03

seekmba wrote:

A car dealership sold two cars: the first car at a 10% profit and the second car at a 10% loss, which gave them an overall profit margin of 5% from these two sales. If the dealership's total profit was $1000, what was the sale price of each car?

$5,000 and $1,000 $9,000 and $5,000 $11,000 and $9,000 $15,000 and $5,000 $20,000 and $10,000

I got lost in options C and D.

my method is a long one, please any1 feel free to post start from middle and try out answer choices going up or down accordingly

Re: A car dealership sold two cars [#permalink]
29 Aug 2010, 17:54

5% profit is equal to 1000$, that means that the combined costs of the cars = 1000*100/5 = 20000 $ Now, lets assume that the first car cost x $, so the 2nd one costs (20000-x)$

So, x/10 - (20000-x)/10 = 1000 => x-20000+x = 10000 => x = 15000 so, 20000 -x = 5000

Re: A car dealership sold two cars [#permalink]
22 Jun 2011, 12:31

sorry to bump an old thread, but i have a question regarding this question's wording.

doesn't X denote the cost to the dealership, and not the sale price of the first car? i thought sale price of X would be 110/100 of X, since it is sold at a 10% profit.

let X denote cost to the dealership of 1st car, and Y for the 2nd car.

sale price minus cost of X + sale price minus cost of Y = profit X*(110/100)-X + Y*(90/100)-Y = 1000 X*(10/100) - Y(10/100) = 1000

once we finally get X from the other equation, wouldn't the sale price of X be 15000*110/100 = 16500 and sale price of Y be 5000 * 90/100 = 4500?

so profit from X is 1500 and loss from Y is 500, total profit is 1000.

the question asked for sale price, not cost, that's why i was confused. can someone clear up the confusion for me or am i just crazy? thanks

Re: A car dealership sold two cars [#permalink]
22 Jun 2011, 13:06

anon123 wrote:

sorry to bump an old thread, but i have a question regarding this question's wording.

doesn't X denote the cost to the dealership, and not the sale price of the first car? i thought sale price of X would be 110/100 of X, since it is sold at a 10% profit.

let X denote cost to the dealership of 1st car, and Y for the 2nd car.

sale price minus cost of X + sale price minus cost of Y = profit X*(110/100)-X + Y*(90/100)-Y = 1000 X*(10/100) - Y(10/100) = 1000

once we finally get X from the other equation, wouldn't the sale price of X be 15000*110/100 = 16500 and sale price of Y be 5000 * 90/100 = 4500?

so profit from X is 1500 and loss from Y is 500, total profit is 1000.

the question asked for sale price, not cost, that's why i was confused. can someone clear up the confusion for me or am i just crazy? thanks

Re: A car dealership sold two cars [#permalink]
22 Jun 2011, 13:50

Thanks fluke. I just did a quick google search and this was the thread that came up 1st, didn't know there was another thread on this already. but glad to know i was right, i never doubt the questions/answers of OA, but i spent way too much time thinking about this problem!

Re: A car dealership sold two cars [#permalink]
25 Sep 2011, 02:10

USING AN MGMAT-style TABLE (see attached picture)

Now, take any extra relationships that don’t quite go in this table and write equations for them. In this case, Cost = X + Y ... We’re told the profit margin is 5%. Therefore, profit is 5% of the cost price, which is 1,000. Therefore, 0.05(X + Y) = 1,000 so X + Y = 1000/0.05 = 20,000.

So, equation 1: X + Y = 20,000

Equation 2: 0.1X – 0.1Y = 1,000

Solve for x and y using elimination (or substitution, whatever you prefer): X + Y = 20000 X – Y = 10000 0 + 2Y = 10,000

Y = 5000. X = 20,000 – 5,000 = 15,000

This is the answer.

Attachments

1.JPG [ 23.22 KiB | Viewed 1246 times ]

gmatclubot

Re: A car dealership sold two cars
[#permalink]
25 Sep 2011, 02:10