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Martha bought an armchair and a coffee table at an action

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Martha bought an armchair and a coffee table at an action [#permalink] New post 01 Mar 2012, 13:08
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Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table.

(2) Martha sold the armchair for 20% more than she sold the coffee table.

Thanks! :)
[Reveal] Spoiler: OA
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Re: Martha bought an armchair and a coffee table at an action [#permalink] New post 01 Mar 2012, 15:04
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hersheycake wrote:
Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table.

(2) Martha sold the armchair for 20% more than she sold the coffee table.

Thanks! :)


Welcome to GMAT Club. Below is a solution to your question.

Let the selling price and cost price of an armchair be S_a and C_a respectively;
Let the selling price and cost price of a coffee table be S_c and C_c respectively.
Basically we need to get: \frac{S_a-C_a}{S_c-C_c}.

(1) Martha paid 10% more for armchair than for the coffee table --> C_a=1.1*C_c. Not sufficient to get the ratio.

(2) Martha sold the armchair for 20% more than she sold the coffee table --> S_a=1.2*S_c. Not sufficient to get the ratio.

(1)+(2) \frac{S_a-C_a}{S_c-C_c}=\frac{1.2*S_c-1.1*C_c}{S_c-C_c}, still not sufficient to get the ratio.

Answer: E.

Notice though that if the percents in (1) and (2) were the same then the answer would be C, since we would be able to factor out the percent and then reduce by S_c-C_c. For example if (1) were Martha paid 20% more for armchair than for the coffee table, then we would have: \frac{S_a-C_a}{S_c-C_c}=\frac{1.2*S_c-1.2*C_c}{S_c-C_c}=\frac{1.2*(S_c-C_c)}{S_c-C_c}=1.2, which would mean that Martha's gross profit from the armchair was 20% greater than her gross profit from the coffee table. Or simply if both the cost price and selling price of the armchair were 20% greater than the cost price and selling price of the coffee table then the profit would also be 20% greater.

Hope it's clear.
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Re: Martha bought an armchair and a coffee table at an action [#permalink] New post 02 Mar 2012, 11:02
Also Bunuel,

C would be true even if the percentages are different but if it were product

i .e instead of profit calculation ,if it were a revenue calculation, C would be the answer?

Am i right?
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Re: Martha bought an armchair and a coffee table at an action [#permalink] New post 02 Mar 2012, 11:15
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shankar245 wrote:
Also Bunuel,

C would be true even if the percentages are different but if it were product

i .e instead of profit calculation ,if it were a revenue calculation, C would be the answer?

Am i right?


I'm not sure understand your point. The question asks about the ratio of the profits, not the value of any profit. If it were asking about the ratio of the revenues then the answer would be B, since (2) directly says that revenue from the armchair was 20% more than the revenue from the coffee table.
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Re: Martha bought an armchair and a coffee table at an action [#permalink] New post 10 Jun 2013, 02:52
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Re: Martha bought an armchair and a coffee table at an action [#permalink] New post 18 Aug 2013, 18:40
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hersheycake wrote:
Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table.

(2) Martha sold the armchair for 20% more than she sold the coffee table.



Question asks for \frac{S_a-C_a}{S_c-C_c}

(1) Pick number C_c=100 then C_a=110 we don't have information for S_c and S_a so insufficient

(2) Pick number S_c=200 then S_a=240 we don't have information for C_c and C_a so insufficient

(1)+(2) Although it seems like we can solve the questions using the numbers we picked above for (1) and (2), we need to try to pick a new set of numbers to make the statements insufficient.
For example, pick number S_c=300 then S_a=360. The numerator and denominator change non-proportionally, therefore will result in a different ratio.

Answer is E
Re: Martha bought an armchair and a coffee table at an action   [#permalink] 18 Aug 2013, 18:40
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