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

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Question Stats:

72% (02:08) correct
28% (01:02) wrong based on 216 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

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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

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'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

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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

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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.

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

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