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 Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

The average (arithmetic mean) price of the 3 items that Kate [#permalink]
11 Sep 2012, 03:48

2

This post received KUDOS

Expert's post

1

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

25% (medium)

Question Stats:

73% (02:08) correct
27% (01:04) wrong based on 240 sessions

The average (arithmetic mean) price of the 3 items that Kate purchased from a clothing store was $50. If there was no sales tax on any item that had a price of less than $80 and 6 percent sales tax on all other items, what was the total sales tax on the 3 items that Kate purchased?

(1) The price of the most expensive item that Kate purchased from the store was $100. (2) The price of the least expensive item that Kate purchased from the store was $10.

Practice Questions Question: 37 Page: 278 Difficulty: 600

Re: The average (arithmetic mean) price of the 3 items that Kate [#permalink]
11 Sep 2012, 03:48

1

This post received KUDOS

Expert's post

SOLUTION

The average (arithmetic mean) price of the 3 items that Kate purchased from a clothing store was $50. If there was no sales tax on any item that had a price of less than $80 and 6 percent sales tax on all other items, what was the total sales tax on the 3 items that Kate purchased?

It's almost always better to express the average in terms of the sum: so we have that the sum of 3 items Kate purchased is 3*50=$150.

(1) The price of the most expensive item that Kate purchased from the store was $100. The sum of the prices of the 2 remaining items is $150-$100=$50. So, each price is less than $80, which means that Kate paid 6% sales tax only on the most expensive item (6% of $100). Sufficient.

(2) The price of the least expensive item that Kate purchased from the store was $10. The sum of the prices of the 2 remaining items is $150-$10=$140. If the 2 remaining prices are $70 and $70, then Kate didn't paid sales tax at all, but if the 2 remaining prices are $100 and $40, then Kate paid sales tax on $100 item. Not sufficient.

The average (arithmetic mean) price of the 3 items that Kate purchased from a clothing store was $50. If there was no sales tax on any item that had a price of less than $80 and 6 percent sales tax on all other items, what was the total sales tax on the 3 items that Kate purchased?

(1) The price of the most expensive item that Kate purchased from the store was $100. (2) The price of the least expensive item that Kate purchased from the store was $10.

Practice Questions Question: 37 Page: 278 Difficulty: 600

Each week we'll be posting several questions from The Official Guide for GMAT® Review, 13th Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution.

We'll be glad if you participate in development of this project: 1. Please provide your solutions to the questions; 2. Please vote for the best solutions by pressing Kudos button; 3. Please vote for the questions themselves by pressing Kudos button; 4. Please share your views on difficulty level of the questions, so that we have most precise evaluation.

Thank you!

'A' is the answer. Avg of 3 items is 50. so total cost of all three items will be 150. as '1' says most expensive item is 100 rs. so other 2 items price sum have 50 (so neither of the two items will have price value more than 80). so, the sale tax will be on one item which is costing 100Rs. '2' it says least expensive item is 10. so other two items can be 80&60, 90&50, 100&40, 110&30.. any. so insufficient.

Re: The average (arithmetic mean) price of the 3 items that Kate [#permalink]
12 Sep 2012, 02:52

1

This post received KUDOS

Bunuel wrote:

The average (arithmetic mean) price of the 3 items that Kate purchased from a clothing store was $50. If there was no sales tax on any item that had a price of less than $80 and 6 percent sales tax on all other items, what was the total sales tax on the 3 items that Kate purchased?

(1) The price of the most expensive item that Kate purchased from the store was $100. (2) The price of the least expensive item that Kate purchased from the store was $10.

From stem we know the total value of 3 items = 3 x $50 = $150

St 1: Sufficient: If most expensive item is $100, we have $ 50 remaining for other two items. So definitely other 2 items are less than $80. So Kate has to pay only 6% sales tax for $100 item.

St 2: Insufficient: If price of least item is $10, We have $140 remaining for other 2 items. So 2 items can be a combination of ($100, $40) or ($70, $70) or ($80, $60) etc. So the sales tax will vary depending on the distribution of $140 with in 2 items.

Re: The average (arithmetic mean) price of the 3 items that Kate [#permalink]
12 Sep 2012, 14:30

1

This post received KUDOS

Answer is A.

Total amount of 3 items = 3*50 = $150

1) Since most expensive item is $100, then remaining 2 items would have been bought in $50. Hence we can determine that tax will be applicable only the expensive item which is 6% of 100 = $6. Sufficient

2) Least expensive item is $10 which means remaining 2 items might have been bought in $140 (90,30), (70,70) etc. Cannot determine which need to be taxed. Insufficient.

Re: The average (arithmetic mean) price of the 3 items that Kate [#permalink]
14 Sep 2012, 05:22

Expert's post

SOLUTION

The average (arithmetic mean) price of the 3 items that Kate purchased from a clothing store was $50. If there was no sales tax on any item that had a price of less than $80 and 6 percent sales tax on all other items, what was the total sales tax on the 3 items that Kate purchased?

It's almost always better to express the average in terms of the sum: so we have that the sum of 3 items Kate purchased is 3*50=$150.

(1) The price of the most expensive item that Kate purchased from the store was $100. The sum of the prices of the 2 remaining items is $150-$100=$50. So, each price is less than $80, which means that Kate paid 6% sales tax only on the most expensive item (6% of $100). Sufficient.

(2) The price of the least expensive item that Kate purchased from the store was $10. The sum of the prices of the 2 remaining items is $150-$10=$140. If the 2 remaining prices are $70 and $70, then Kate didn't paid sales tax at all, but if the 2 remaining prices are $100 and $40, then Kate paid sales tax on $100 item. Not sufficient.

Answer: A.

Kudos points given to everyone with correct solution. Let me know if I missed someone. _________________

Re: The average (arithmetic mean) price of the 3 items that Kate [#permalink]
01 Jul 2014, 20:09

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________