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Lana bought two lots last year and sold both of them [#permalink]

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31 Jul 2007, 10:16

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Lana bought two lots last year and sold both of them yesterday. If the selling price of lot B was twice that of lot A, did Lana make a profit on the sale of these two lots?

(1) Lana sold lot A for 20% more than its purchase price.
(2) Lana sold lot B for more than 90% of its purchase price.

Lana bought two lots last year and sold both of them yesterday. If the selling price of lot B was twice that of lot A, did Lana make a profit on the sale of these two lots?

(1) Lana sold lot A for 20% more than its purchase price. (2) Lana sold lot B for more than 90% of its purchase price.

C:

1: we do not know about the purchase price of B. nsf.
2: we do not know about the purchase price of A. nsf.

If lot B sold for exactly 90% of its purchase price, with the information from both statements, Lana took a loss. But we are told it sold for more than 90% of price, so it could be a profit depending on how much more than 90%. I plugged in a couple values and at 90% it's a loss.

I sleeped on 90%, which i assumed as 190%, in B. with 90%, it is perfectly make sense to go with E.

Himalayan wrote:

kevincan wrote:

Lana bought two lots last year and sold both of them yesterday. If the selling price of lot B was twice that of lot A, did Lana make a profit on the sale of these two lots?

(1) Lana sold lot A for 20% more than its purchase price. (2) Lana sold lot B for more than 90% of its purchase price.

C:

1: we do not know about the purchase price of B. nsf. 2: we do not know about the purchase price of A. nsf.

We know that if she sold the second property for 90% it's a loss, and even if at 91% it's a profit, we don't know that she sold it for 91%. All we know is she sold it for more than 90% - it could be 90.0001%. So we can't know if it was a profit or a loss.

I think we are getting confused with the varbage of statement 2.

"Lana sold lot B for more than 90% of its purchase price."

Depends on how you interpret it .
If you interpret
Lana made 90% profit on purchased price : answer is C
and
If you interpret
Lana made more than 90% profit on purchased priced : answer is E .

Here we know Lana made more than 90% of its purchases price and that could be 91 92...anything . So answer has to be E.

Lana bought two lots last year and sold both of them yesterday. If the selling price of lot B was twice that of lot A, did Lana make a profit on the sale of these two lots? (1) Lana sold lot A for 20% more than its purchase price. (2) Lana sold lot B for more than 90% of its purchase price.

ashkrs wrote:

I think we had enough of discussion . OA Please

Let me clearify myself:
CP (A) = a
SP (A) = 1.2a
SP (B) = 2.4a
CP(B) = 2.4a/.9 = 8a/3
so the profit (losss) = SP - CP
= (1.2a + 2.4a) - (a + 8a/3)
= 3.6a - 11a/3
= (10.8a - 11a)/3
= - 0.2a/3

if we consider SP (B) as 92.31% of its CP, then there would be no loss no gain.

if SP (B) is > 92.31% of its purchase price, the profit is +ve. so the statements are insufficient and its E.

Lana bought two lots last year and sold both of them yesterday. If the selling price of lot B was twice that of lot A, did Lana make a profit on the sale of these two lots?

(1) Lana sold lot A for 20% more than its purchase price. (2) Lana sold lot B for more than 90% of its purchase price.

Suppose the selling price of A was x. Then the selling price of B was 2x and the question can be rephrased as follows: Is the sum of the purchase prices of A and B less than 3x?

Neither is sufficient by itself: (1) says the purchase price of A is 5x/6, (2) says that the purchase price of B is less than 20x/9.
Together, (1) and (2) tell us that the sum of the purchase prices is less than 5x/6 + 20x/9 = 15x/18 + 40x/18 =55x/18 > 3x.
Thus Lana may or may not have made a profit.