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

 It is currently 27 Apr 2015, 17:32

### 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

# For every dollar of sales charged to a certain bank credit

Author Message
TAGS:
Director
Joined: 23 Jun 2005
Posts: 847
GMAT 1: 740 Q48 V42
Followers: 5

Kudos [?]: 31 [0], given: 1

For every dollar of sales charged to a certain bank credit [#permalink]  24 Oct 2006, 13:41
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
For every dollar of sales charged to a certain bank credit card, a department store must pay $0.003 to the bank that issued the credit card. What percentage of the department store's sales transactions last month were credit card transactions? 1. The store made 2,000 last month. 2. The store took in a total of$250,000 last month and paid $300 to the bank that issued the credit card. Please provide explanations. Senior Manager Joined: 01 Sep 2006 Posts: 302 Location: Phoenix, AZ, USA Followers: 1 Kudos [?]: 15 [0], given: 0 Answer B [#permalink] 24 Oct 2006, 13:56 A Insufficeint just tells total profit. No info about sales or cc B Sufficent 3/1000$ payed to credit card for each dollar
300 paid for 1*300/(3/1000)=300,000/3=100,000

You dont need to calculate exact percent but below is calc
Percentage Sale by CC 100,000/250,000=40%
Senior Manager
Joined: 13 Sep 2006
Posts: 282
Location: New York
Followers: 1

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

One more for B

1. The store made 2,000 last month. - Insufficient as we do not know how much may be from cash or other credit cards
2. The store took in a total of $250,000 last month and paid$300 to the bank that issued the credit card. - Sufficient as $300 was the total charged by the bank.$250K = total transactions (which could include cash, other payment methods etc...).
_________________

"Never let the fear of striking out get in your wayâ€

Director
Joined: 23 Jun 2005
Posts: 847
GMAT 1: 740 Q48 V42
Followers: 5

Kudos [?]: 31 [0], given: 1

OA is different, guys! Anybody else want to give a try?
Director
Joined: 01 Oct 2006
Posts: 500
Followers: 1

Kudos [?]: 18 [0], given: 0

St 1 is insufficient as it gives the profit.
St2 helps us 2 find for how many transactions did company pay the bank. but we can not determine total number of sales transaction.

Combing both also is insuff

So my pick is E

What is OA?
Manager
Joined: 31 Aug 2006
Posts: 213
Followers: 1

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

(E)
Stat(1) - Insuff
Stat(2) - Can only tell the amount that was made from credit card transactions. If each dollar meant 1 transaction only then Stat(2) would be suff. But we are not aware of the amount included in each transaction. A single transaction could include several dollars.
Hence (E)
Senior Manager
Joined: 13 Sep 2006
Posts: 282
Location: New York
Followers: 1

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

anandsebastin wrote:
OA is different, guys! Anybody else want to give a try?

I think it should be B. But would not be surprised if it was E.

My logic:

250,000 = total transcations and 300 was amount paid to credit card companyt.

Which means there were 100,000 worth of transacations and 40% of transacations were credit card no?
_________________

"Never let the fear of striking out get in your wayâ€

Director
Joined: 23 Jun 2005
Posts: 847
GMAT 1: 740 Q48 V42
Followers: 5

Kudos [?]: 31 [0], given: 1

OE is indeed E.

If you pay extra attention to the question, it asks for percent of no. of creidt card transactions as percent of total no. of transactions. There is no information on the number of transactions in either statement.

I did not. But, IMO, the question is not very clear in the first place.
Similar topics Replies Last post
Similar
Topics:
1 For every order, a certain mail-order company charges a ship 2 14 Mar 2013, 04:48
3 A shoe Cobbler charges n dollars 12 03 Jan 2013, 00:09
1 A certain bank charges a maintenance fee on a standard checking accoun 4 06 May 2011, 09:17
21 Every day a certain bank calculates its average daily 21 18 Jul 2010, 09:32
2 If 1000 dollar is deposited in a certain bank account and 1 28 Dec 2007, 03:56
Display posts from previous: Sort by