Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 20 Apr 2015, 22:37

### GMAT Club Daily Prep

#### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A store sold A at a price three times as much as B. The

Author Message
TAGS:
Senior Manager
Joined: 01 May 2004
Posts: 337
Location: USA
Followers: 1

Kudos [?]: 12 [0], given: 0

A store sold A at a price three times as much as B. The [#permalink]  30 Jun 2004, 17:02
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
A store sold A at a price three times as much as B. The gross profit of A is 80% of the price that the store paid for A. The gross profit for B is 20% of the price that the store paid for B. what percent is the total gross profit of the total amount that the store paid for both A and B?
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4313
Followers: 26

Kudos [?]: 214 [0], given: 0

A = 3B
Total cost: B + 3B = 4B
gross profit: .8*3B + .2*B
gross profit/total cost = [.8*3B + .2*B] / 4B
= 2.4B + .2B / 4B
= 2.6B / 4B = .65
_________________

Best Regards,

Paul

Senior Manager
Joined: 07 Oct 2003
Posts: 358
Location: Manhattan
Followers: 2

Kudos [?]: 7 [0], given: 0

I got a slightly different answer:

A B
Sale 100 20
CGS 50 20

GP 40 4

GP/CGS = 44/70 = 22/35= 62.8%

Any thoughts?
Senior Manager
Joined: 07 Oct 2003
Posts: 358
Location: Manhattan
Followers: 2

Kudos [?]: 7 [0], given: 0

it seems like there's a flaw in my solution, I just can't quite put my finger on it.
Senior Manager
Joined: 01 May 2004
Posts: 337
Location: USA
Followers: 1

Kudos [?]: 12 [0], given: 0

I've got 65% too, so I wanted just to check with you guys
Senior Manager
Joined: 21 Mar 2004
Posts: 444
Location: Cary,NC
Followers: 2

Kudos [?]: 20 [0], given: 0

Paul wrote:
A = 3B
Total cost: B + 3B = 4B
gross profit: .8*3B + .2*B
gross profit/total cost = [.8*3B + .2*B] / 4B
= 2.4B + .2B / 4B
= 2.6B / 4B = .65

I think the selling price(SP) of A is 3 times of B ( and not the cost price)

So the gross profit should be calculated on Cost price(CP).

Let SP of B = 100.
SP of A = 300

CP of A = 300/1.8
CP of B = 100/1.2

total cost = 300/1.8 + 100/1.2

Total gross profit = (300 - 300/1.8) + (100 - 100/1.2 )

% profit = (total gross profit / total cost )*100= 60%

- ash.
_________________

ash
________________________
I'm crossing the bridge.........

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4313
Followers: 26

Kudos [?]: 214 [0], given: 0

Quote:
CP of A = 300/1.8
CP of B = 100/1.2

Can you explain how you derived this? Also, are you not taking data from gross profit (profit/cost) and applied it to sales price?
_________________

Best Regards,

Paul

Senior Manager
Joined: 21 Mar 2004
Posts: 444
Location: Cary,NC
Followers: 2

Kudos [?]: 20 [0], given: 0

If CP is x and profit is 80% on CP , profit = .8x

the SP would be x+.8x = 1.8x

So CP in terms of SP = SP/1.8 = 300/1.8

Similary

for B , CP = 100/1.2
as profit is 20%.

hope that clears things.

- ash
_________________

ash
________________________
I'm crossing the bridge.........

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4313
Followers: 26

Kudos [?]: 214 [0], given: 0

lastochka wrote:
I got a slightly different answer:

A B
Sale 100 20
CGS 50 20

GP 40 4

GP/CGS = 44/70 = 22/35= 62.8%

Any thoughts?

Hmmm, given that B sales price is 20, shouldn't sales price of A be 60$? Quote: A store sold A at a price three times as much as B Also, how did you get CGS(cost of goods sold) 50$ for A and 20\$ for B? Am I missing something here?
_________________

Best Regards,

Paul

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4313
Followers: 26

Kudos [?]: 214 [0], given: 0

ashkg wrote:
If CP is x and profit is 80% on CP , profit = .8x

the SP would be x+.8x = 1.8x

So CP in terms of SP = SP/1.8 = 300/1.8

Similary

for B , CP = 100/1.2
as profit is 20%.

hope that clears things.

- ash

:nice ashk. Are you an accountant? Well, after your explanation, I declare myself birdbrain
_________________

Best Regards,

Paul

Senior Manager
Joined: 21 Mar 2004
Posts: 444
Location: Cary,NC
Followers: 2

Kudos [?]: 20 [0], given: 0

Hi Paul,

You have prompted me to post an introduction of myself
Thanks for that, or I would have done that after my exam.

http://www.gmatclub.com/phpbb/viewtopic ... 2114#42114

take care,
ash.
_________________

ash
________________________
I'm crossing the bridge.........

Similar topics Replies Last post
Similar
Topics:
How much was the original price of a car, which was sold for 13 08 Sep 2011, 17:54
During a sale, a clothing store sold each shirt at a price 1 19 May 2008, 14:01
A does half as much work as B in three-fourth of the time.If 7 05 Feb 2007, 10:27
a store sold A at a price three times as much as B. The 7 30 Nov 2006, 15:36
During a sale, a clothing store sold each shirt at a price 10 02 Oct 2006, 20:26
Display posts from previous: Sort by