At the beginning of the last month, a stationery store had

Saurya,

We don't know what the selling price is of one writing pad and therefore we don't exactly know how many he did sell.

The revenue is $ 180 but the sellingprice can be $ 1.00 or $ 2.00 which will give different amounts.

Regards,

Alex

Hi alex
I agree with you on your explanation. These things are true if he has sold something. And this is what you are assuming. If he boought the pads just to top up his stocks, the selling price thing will not fugure in. Say for example, he just bought the stock (as he might not be expecting supplies soon oor soem other reason) and he has not sold anything. Then what is the answer. Is this a possibility in the question?
S

Saurya,

You can't use the assumption that he did not sold any writing pad, because in statement 2 it is mentioned that he did sell some writing pads.

We just don't know how many he sold. And that is the trick of this question. We need to know the amount he sold, otherwise we will never know what the amount will be at the end of the month.

The info in the question is not sufficient, cause with statement 1 we know how many he bought this month. But in statement 2 we know the revenue of what he sold, and we cannot find how many of the writing pads had to be sold to get the revenue of $ 180.

I hope I have helped you with my explanation.
Otherwise other members could give further feedback.

Regards,

Alex

The answer should be A.
The only thing that is asked is "how much did the store spend in writing pad?" and the only once the purchase that it made for that month.

Assuming that the inventory cost and labour cost are not apportioned to the writing pads, the answer is A

How much the store spend on the writing pad at the end of the month. We do not know how many were sold. E is my answer.