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A store purchased a Brand C computer for the same amount

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A store purchased a Brand C computer for the same amount [#permalink] New post 26 Apr 2007, 05:53
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A
B
C
D
E

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A store purchased a Brand C computer for the same amount that it paid for a Brand D computer and then sold them both at higher prices. The storeтАЩs gross profit on the Brand C computer was what percent greater than its gross profit on the Brand D computer?

(1) The price at which the store sold the Brand C computer was 15 percent greater than the price at which the store sold the Brand D computer.
(2) The storeтАЩs gross profit on the Brand D computer was $300.
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 [#permalink] New post 26 Apr 2007, 10:38
vijay2001 wrote:
answer C


Hi Vijay, would you give an explanation on this problem? Or anyone else?
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 [#permalink] New post 26 Apr 2007, 15:50
The question asks us to determine what percent greater is Brand C's gross profit than Brand D's gross profit.

Here's how I figured this out....

Sc=selling price of Brand C
Sd=selling price of Brand D
Pc=price/cost of C
Pd=price/cost of D
Gc=gross profit of C
Gd=gross profit of D

The equation that needs to be solved is:
(Gc-Gd)/Gc

[1] this tells us that Sc=1.15(Sd)

plug this into the equation for gross profit for C:
Sc-Pc=Gc --> 1.15(Sd)-Pc=Gc --> we can sustitute Pd for Pc because we know from the question stem that they are equal.
Therefore, 1.15(Sd)-Pd=Gc

Plug this into our initial equation:

(Gc-Gd)/Gc --> (1.15(Sd)-Pd-Sd-Pd)/1.15(Sd)-Pd
Simplify: (1.15(Sd)-2Pd)/1.15(Sd)-Pd

Here we get stuck because we don't have any info on the Pd. [1] is insufficient.

[2] this tells us that the Gd=300. This doesn't give us any info about Brand C at all. Insufficient.

[1]+[2] if you put these together, you can plug 300 into the equation you found in [1] and come up with a %.

Answer: C
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 [#permalink] New post 27 Apr 2007, 00:10
I think answer is E. I assume we have to know buying price of products?
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 [#permalink] New post 27 Apr 2007, 14:56
Answer should be E

the question is asking for a unique solution.

Cost price of the computers are the same.
Statement 1

Implies that the SP of C = 1.15 SP of D
the equation is reduced to G.P of C- G.P of D/ G.P of D
= 1.15 x- CP -x+CP/ x- CP , where x= Selling price of D, 1.15x= SP of C, CP= cost price of computers ( CP of C= CP of D)

Equation is reduced to 0.15x/ x- CP * 100

Insufficient

Statement 2
GP of D = 300
doesnt not tell us anything about the SP , insufficuent data

Combing statement 1 &2

300= x- CP,
adding this to the previous reduced equation we get
( 0.15x/ x-x+300) *100= ).05 x
the value again depends on x.
so insufficient

hence the best answer is E
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 [#permalink] New post 28 Apr 2007, 06:43
It's E

The question asks Pc/Pd = (price C - cost)/(price D - cost)

cost C = cost D = cost

From S1: price C = 1.15 price D ; we don't know the 'cost' -> Insuff
From S2: Pd = 300 = price D - cost; when we plug this information into the formula Pc/Pd we still have 'cost' as a variable ---> Insuff

S1 and S2: the 'cost' is still unknown ---> Insuff
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 [#permalink] New post 28 Apr 2007, 12:34
E for me as well.. What's the OA please?
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 [#permalink] New post 29 Apr 2007, 06:59
the question is asking for gross profit...which means I need to know the total number of units sold for each brand..we have no such info given...

for all i know the store sold 1 brand C computer..and 10 brand B computer etc..the gross profit would be different if the store sold 10 brand C computers and 10 brand D computers...

My answer is E..
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 [#permalink] New post 30 Apr 2007, 02:58
I will go for "E"

C= # of brand C comps; X buying price, X1 selling price
D= # of brand D comps, Y buying price , Y1 selling price

question asks C(X1-X)/D(Y1-Y) -1 = ?

statement1: X1 = Y1*1.15
If we replace in the q-stem, there will be variables left, hence INSUFFICIENT

statement: D(Y1-Y) =300
it is INSUFFICIENT

State 1 & 2 combined:

we need C and X to answer the question, hence INSUFFICIENT
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 [#permalink] New post 30 Apr 2007, 05:16
I think it is E

Sc=selling price of Brand C
Sd=selling price of Brand D
Pc=price/cost of C
Pd=price/cost of D

The question can be translate as following:

What is x so that: Sc-Pc = x (Sd-Pd) ?

(1) gives Sc = 0,15 Sd
knowing that Pc = Pd
then Sc-Pc = 0,15 Sd - Pd
Not sufficient to caculate x.

(2) gives Sd-Pd = 300
then Sc-Pc = x (300)
Not sufficient to caculate x.

(1) and (2) together not sufficient to calculate x.
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 [#permalink] New post 30 Apr 2007, 06:18
The OA is E.

:)
  [#permalink] 30 Apr 2007, 06:18
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