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A computer dealer initially offered a laptop for sale at a [#permalink]
25 Dec 2004, 18:08
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A computer dealer initially offered a laptop for sale at a price that would have given him a 25% profit over his cost. What was his cost (in dollars)?
(1) The computer dealer eventually sold the laptop for $1150.
(2) After the laptop was rated highly by a PC magazine, the computer dealer raised the price 15% and sold it for a profit of $350.
A. Statement (1) BY ITSELF is sufficient to answer the question, but statement (2) by itself is not.
B. Statement (2) BY ITSELF is sufficient to answer the question, but statement (1) by itself is not.
C. Statements (1) and (2) TAKEN TOGETHER are sufficient to answer the question, even though NEITHER statement BY ITSELF is sufficient.
D. Either statement BY ITSELF is sufficient to answer the question.
E. Statements (1) and (2) TAKEN TOGETHER are NOT sufficient to answer the question, meaning that further information would be needed to answer the question.
HIGHLIGHT BELOW TO SEE OA:
(B) The word â€˜initiallyâ€™ in the question suggests that the price was later changed before the item was sold. So we cannot assume that the $1150 in statement 1 was the initial price, which means we cannot calculate the original cost by using the 25% profit margin. So statement 1 alone is not sufficient. Using the information in statement 2, we know that the price the laptop sold for = 1.15 Ã— 1.25 Ã— cost = 1.4375 Ã— cost. And we know that the profit was $350. So $350 = 0.4375 Ã— cost which can be solved for cost. Therefore statement 2 alone is sufficient, and the answer is B.