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.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

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 computer dealer initially offered a laptop for sale at a [#permalink]

Show Tags

25 Dec 2004, 18:08

00:00

A

B

C

D

E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct
0% (00:00) wrong based on 0 sessions

HideShow timer Statistics

This topic is locked. If you want to discuss this question please re-post it in the respective forum.

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.

s2: Let actual cost be 100. First mark up of 25% results in a price of 125. The second mark up of 15% results in a price of 143.75. So actual mark up is 43.75%

So, if actual cost is x. From s2, we have 43.75 % of x = 350.
So, we can calculate x the actual cost. Sufficient.