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# A supermarket sells both a leading brand of laundry powder

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Manager
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A supermarket sells both a leading brand of laundry powder [#permalink]  28 May 2007, 06:27
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. A supermarket sells both a leading brand of laundry powder and its own brand of laudry powder. On all sizes of the leading brand it makes a profit of 15 percent of cost per box. On all sizes of its own brand it makes a profit of 10 percent of cost per box. For a certain month, from the sales of which of the two brands does the supermarket realize the greater profit?

(1) Ounce for ounce, the supermarket pays a higher wholesale price for the leading brand than it does for its own brand.
(2) Ounce for ounce, the supermarket sells 25 percent more of its own brand than of the leading brand.
Manager
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I would say E.

Nothing is mentioned about the cost price or the amount sold per month. And the package sizes are also not mentioned.

OA?
CEO
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A supermarket sells both a leading brand of laundry powder and its own brand of laudry powder. On all sizes of the leading brand it makes a profit of 15 percent of cost per box. On all sizes of its own brand it makes a profit of 10 percent of cost per box. For a certain month, from the sales of which of the two brands does the supermarket realize the greater profit?

(1) Ounce for ounce, the supermarket pays a higher wholesale price for the leading brand than it does for its own brand.
(2) Ounce for ounce, the supermarket sells 25 percent more of its own brand than of the leading brand.

Stmnt: 1 is obviously insufficient.

So what if it costs more. It could cost only a penny more and the store could sell a Billion boxes of the the leading brand while only selling 1 box of its own brand. who knows?

Stmnt: 2 Sufficient

Take a closer look. NOWHERE in the statment does it say the two powders sell for more than the other. Lets say the store sells 100 boxes of the leading brand. According to the statement the store MUST have sold 125 boxes of its own brand.

And it made 12.5% on 125 boxes for the store brand.

So it realizes a greater profit from the leading brand.

You can try this with several numbers and it works out.

Manager
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Nice.

I missed the part where we can actually equate 15% profit on an ounce to mean 15% profit on a box. If he is selling more ounces then he is making the profit regardless of box size.
VP
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I think the answer is (E)

Sale price = x [amount sold * price per amount]

Cost = 0.85*x

Profit = 0.15*x

Own brand

Sale price = y [amount sold * price per amount]

Cost = 0.9*y

Profit = 0.1*y

I can't see how replacing the amount sold will help , we still don't know what is the price per amount.

I don't think we can assume the price is the same (then as GmatBlackBelt is correct & the answer is (B))

Manager
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WHEN I'VE DONE THIS QUESTION MY ANSWER WAS B, BUT THE OA IS E
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