A supermarket sells both a leading brand of laundry powder a : GMAT Data Sufficiency (DS)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 24 Jan 2017, 10:01

### 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 supermarket sells both a leading brand of laundry powder a

Author Message
TAGS:

### Hide Tags

Manager
Joined: 14 Mar 2007
Posts: 235
Followers: 1

Kudos [?]: 8 [0], given: 0

A supermarket sells both a leading brand of laundry powder a [#permalink]

### Show Tags

28 May 2007, 05:27
00:00

Difficulty:

75% (hard)

Question Stats:

52% (02:33) correct 48% (01:46) wrong based on 177 sessions

### HideShow timer Statistics

A supermarket sells both a leading brand of laundry powder and its own brand of laundry 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.
[Reveal] Spoiler: OA
Manager
Joined: 14 Mar 2007
Posts: 96
Followers: 1

Kudos [?]: 11 [0], given: 0

### Show Tags

28 May 2007, 08:00
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
Joined: 29 Mar 2007
Posts: 2583
Followers: 19

Kudos [?]: 422 [0], given: 0

### Show Tags

28 May 2007, 08:59
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
Joined: 14 Mar 2007
Posts: 96
Followers: 1

Kudos [?]: 11 [0], given: 0

### Show Tags

28 May 2007, 09:24
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
Joined: 08 Jun 2005
Posts: 1146
Followers: 7

Kudos [?]: 189 [0], given: 0

### Show Tags

28 May 2007, 12:41
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
Joined: 14 Mar 2007
Posts: 235
Followers: 1

Kudos [?]: 8 [0], given: 0

### Show Tags

28 May 2007, 13:02
WHEN I'VE DONE THIS QUESTION MY ANSWER WAS B, BUT THE OA IS E
Current Student
Joined: 06 Sep 2013
Posts: 2035
Concentration: Finance
GMAT 1: 770 Q0 V
Followers: 62

Kudos [?]: 594 [0], given: 355

Re: A supermarket sells both a leading brand of laundry powder a [#permalink]

### Show Tags

12 Oct 2013, 12:32
andrehaui wrote:
A supermarket sells both a leading brand of laundry powder and its own brand of laundry 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.

For me the answer was (B), please allow me to explain my logic

We need to find which of the 2 brands realizes the greatest profit. We have the profit margins for each. We only need to know the ratio of sales from both.

Statement 1 tells us absolutely nothing. Garbage.
Statement 2 tells us exactly that. The ratio of sales between both

I'm happy to discuss further if anyone has a different opinion.
Cheers

J
Kudos if it helps!
Manager
Joined: 27 May 2012
Posts: 218
Followers: 2

Kudos [?]: 71 [0], given: 432

Re: A supermarket sells both a leading brand of laundry powder a [#permalink]

### Show Tags

15 Nov 2013, 15:59
jlgdr wrote:
andrehaui wrote:
A supermarket sells both a leading brand of laundry powder and its own brand of laundry 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.

For me the answer was (B), please allow me to explain my logic

We need to find which of the 2 brands realizes the greatest profit. We have the profit margins for each. We only need to know the ratio of sales from both.

Statement 1 tells us absolutely nothing. Garbage.
Statement 2 tells us exactly that. The ratio of sales between both

I'm happy to discuss further if anyone has a different opinion.
Cheers

J
Kudos if it helps!

Can any expert confirm if the answer is indeed B or E
I also deduced B

Thank you
_________________

- Stne

Director
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 513
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Followers: 26

Kudos [?]: 747 [0], given: 630

Re: A supermarket sells both a leading brand of laundry powder a [#permalink]

### Show Tags

15 Nov 2013, 21:55
There are too many assumptions needed to say that B is right. Margins are relative. Sales price, costs and units sold sold is concrete. Are we assuming the leading brand is more expensive than the store brand or vice versa? Are we assuming the products are similarly priced. What if the store brand is a $1 a box and the leading brand is$10 a box. The absolute margins difference would be vastly different if they leading brand is $1.50 a box. Maybe the leading brand invests more in R&D, marketing and branding which is why the cost is so high. I was fooled into thinking it was B but after some reflection I can see why the answer is E. This is another question you have to be careful on the wording. You are given information in percentage terms and then asked a question in absolute terms. Intern Joined: 20 Nov 2012 Posts: 18 Followers: 0 Kudos [?]: 1 [0], given: 1 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 16 Nov 2013, 06:47 Hi Guys, Here is what I think... Leading Brand Own Brand Profit 1.15 1.10 Quantity x 1.25x Therefore ----> 1.15x <1.1*1.25x-----> 1.15x<1.375x I am opting for B Intern Joined: 13 Sep 2013 Posts: 1 Followers: 0 Kudos [?]: 5 [0], given: 0 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 16 Nov 2013, 09:26 The only reason this is E and not C, is because the gross profit in the stem is provided per box, while both statements talk about ounce for ounce metrics. Since we do not know the weight of each box, it is not possible to calculate the profit from the sales of each product. Intern Joined: 20 Nov 2012 Posts: 18 Followers: 0 Kudos [?]: 1 [0], given: 1 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 16 Nov 2013, 11:55 Hi Andrehaui, Do you by any chance have the official explanation to this problem? Current Student Joined: 06 Sep 2013 Posts: 2035 Concentration: Finance GMAT 1: 770 Q0 V Followers: 62 Kudos [?]: 594 [0], given: 355 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 03 Dec 2013, 08:50 andrehaui wrote: A supermarket sells both a leading brand of laundry powder and its own brand of laundry 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. So what's up with this question? Last time I did it though it was B. Now, I'm leaning towards E Obviously statement 1 is garbage. Why do we care about the price when we have profits? We only need to figure out the weights. Now for Statement 2 We have own brand 10% profit margin, leading brand 15% profit margin Now own brand has 25% more of its own brand. Now it isn't too clear to me when they say it sells both does it mean it only sells those two? Lets assume for a moment that they are both the only brands that it sells. Then we would have 75% and 25% in which case the answer would be C because it would be sufficient to know the weights. If they are not the only brands then the answer would be E cause we could have both scenarios considering only that the weights have a difference of 25% Would be happy to discuss further Cheers J Manager Joined: 15 Aug 2013 Posts: 59 Followers: 1 Kudos [?]: 4 [1] , given: 7 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 03 Dec 2013, 10:31 1 This post received KUDOS Stmt 1 is obviously insufficient. So i wont discuss that. Lets see stmt 2) Ounce for ounce, the supermarket sells 25 percent more of its own brand than of the leading brand Information we already have- leading brand make 15% profit per box own brand make 10% profit per box We are not told how many boxes of each are present. Suppose, own brand sells 125 ounces. So leading brand 100 ounces. Now if the 125 ounce of own brand can fit in just 10 boxes and leading brand's 100 ounces in 50 boxes. Leading brand wins. If the reverse or even worse(1 leading box and 125 own brand boxes), own brand wins. HENCE Insufficient. SO ans- E Thanks. Current Student Joined: 06 Sep 2013 Posts: 2035 Concentration: Finance GMAT 1: 770 Q0 V Followers: 62 Kudos [?]: 594 [0], given: 355 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 13 Jan 2014, 11:36 zerosleep wrote: Stmt 1 is obviously insufficient. So i wont discuss that. Lets see stmt 2) Ounce for ounce, the supermarket sells 25 percent more of its own brand than of the leading brand Information we already have- leading brand make 15% profit per box own brand make 10% profit per box We are not told how many boxes of each are present. Suppose, own brand sells 125 ounces. So leading brand 100 ounces. Now if the 125 ounce of own brand can fit in just 10 boxes and leading brand's 100 ounces in 50 boxes. Leading brand wins. If the reverse or even worse(1 leading box and 125 own brand boxes), own brand wins. HENCE Insufficient. SO ans- E Thanks. Could you elaborate a bit more on statement 2 @zerosleep?, Also do you find the wording ambiguous? Check my posts from before. I think that this question is a bit tricky Happy to discuss further Cheers! J Intern Joined: 26 Sep 2012 Posts: 18 Location: United States GMAT Date: 06-27-2014 GPA: 3.2 Followers: 0 Kudos [?]: 6 [0], given: 6 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 14 Jan 2014, 06:08 The answer is E as the cost price of both the brands is not same. So I don't think we can compare. Intern Joined: 02 Sep 2011 Posts: 17 Schools: Goizueta '16 GPA: 3.94 Followers: 0 Kudos [?]: 0 [0], given: 42 Re: A supermarket sells both a leading brand of laundry powder a [#permalink] ### Show Tags 17 May 2014, 01:37 The answer here should be C. Lets say that the cost of own brand is X$ and for the leading brand Y $. (1) tells us only that Y is more than X (not sufficient alone) (2) profit from own brand is X/10$ and profit from leading brand is 3Y/20 \$. If leading brand is sold "N" amount, than own brand is sold "5N/4".

X/10 * 5N/4=XN/8
3Y/20 * N = 3YN/20~YN/7

(2) is also insufficient as we don't know which is is greater X or Y

(1)+(2) is sufficient, as we can say that Leading Brand generates more profit.
Intern
Joined: 31 Oct 2015
Posts: 37
Followers: 0

Kudos [?]: 2 [0], given: 53

Re: A supermarket sells both a leading brand of laundry powder a [#permalink]

### Show Tags

29 Nov 2015, 17:38
Known: Cost = Wholesale price x amount(purchased then sold).

Question provides the following information:

Leading brand profit = Wholesale price x amount x .15
Own brand profit = Wholesale price x amount x .10

Questions: More profit form own brand or leading brand?

Statement 1: Provides information about wholesale price only and no info on amounts purchased, therefore no conclusions or comparisons about profit can be made.

Own brand whole sale price = x
Leading brand wholesale price = x*y, where y > 1.

Statement 1: Provides information about amount only and no info on whole sale price, therefore no conclusions or comparisons about profit can be made.

Amount of leading brand sold = a
Amount of own brand sold = 1.25a

Combined:

Own brand profit = x*y*1.25*a*0.10 = y*(x*a*.125)

y*.125 can be < or > .15 therefore combined is also insufficient and answer is E.
Re: A supermarket sells both a leading brand of laundry powder a   [#permalink] 29 Nov 2015, 17:38
Similar topics Replies Last post
Similar
Topics:
10 Brand W nut mix contains 24% cashews by weight, and Brand X 6 06 Oct 2016, 10:13
4 Brand A bike costs twice as much as the Brand B bike 3 11 Jan 2014, 21:29
6 A supermarket sells a cerain brand of jelly in two jars of d 5 18 Jan 2013, 03:49
A certain bakery only sells bread. It sells bread at a 3 27 May 2012, 08:55
6 At a certain convenience store, the revenue from Brand A hot 7 02 Jun 2010, 21:01
Display posts from previous: Sort by