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A store purchased a Brand C computer for the same amount [#permalink]
18 Jul 2008, 03:36

00:00

A

B

C

D

E

Difficulty:

(N/A)

Question Stats:

50% (00:00) correct
50% (00:00) wrong based on 0 sessions

A store purchased a Brand C computer for the same amount that is paid for a Brand D computer then sold them both at higher prices. The store's 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% greater than the price at which the store sold the Brand D computer.

(2) The store's gross profit on the Brand D computer was $300.

A store purchased a Brand C computer for the same amount that is paid for a Brand D computer then sold them both at higher prices. The store's 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% greater than the price at which the store sold the Brand D computer.

(2) The store's gross profit on the Brand D computer was $300.

intuitive solution -> E because the purchase price is not known.

formal solution: x - purchase price of computers, y - gross profit on C, z - gross profit on D. question: what is (y-z)/x?

1: (y+x) = 1.5*(z+x) 2: z = 300

1&2: calculate (y-300)/x

x = 700 -> y = 1.5*(700+300)-700 = 800 -> (y-300)/x = 500/700 x = 200 -> y = 1.5*(200+300)-200=550 -> (y-300)/x = 250/200 = 500/400

maratikus, dont you mean that we need to find y-z/z , and not y-z/x ? we are looking for the percentage difference in profit, so i dont think we need the purchase price as the denominator.

all we need to know is the purchase price of the PCs, and the profit relationship between C and D, which we are given

maratikus, dont you mean that we need to find y-z/z , and not y-z/x ? we are looking for the percentage difference in profit, so i dont think we need the purchase price as the denominator.

all we need to know is the purchase price of the PCs, and the profit relationship between C and D, which we are given

you are right, it is (y-z)/z but my examples still work:

x = 700 -> y = 1.5*(700+300)-700 = 800 -> (y-300)/300 = 500/300 x = 200 -> y = 1.5*(200+300)-200=550 -> (y-300)/300 = 250/300

I think what maratikus is trying to say is that, using everything given, u still end up with one unknown in the equation. So the answer should be E.

Here is how i go about it..

St 1. You know neither the selling price, nor the purchase price. It is grossly inadequate. Certainly not option A. let CP = x. Let SP be y and 1.15y. What u r trying to find out is (y-x)/(1.15y-x). You need atleast two equations to solve this. and u dont have even one.

St 2. From this u get nothing on brand c computer SP. Certainly not option B either. let CP=x, then SP for brand D is x+300. Still nothing on brand C.

So certainly not option D.

Now combining one and two, put y=x+300 in the expression from st 1. That gives you 300 / (0.15x + 345). Still nothing unless u know x. Not option C either