Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 05 May 2015, 11:36

### GMAT Club Daily Prep

#### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The price of a product is $a. Bill bought s products and  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Manager Joined: 31 Dec 2003 Posts: 214 Location: US Followers: 0 Kudos [?]: 8 [0], given: 0 The price of a product is$a. Bill bought s products and [#permalink]  01 Sep 2004, 08:23
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
10. The price of a product is $a. Bill bought s products and then sold 80 percents of them$b. which of the following represents the whole deal if Billâ€™s profit was three times the cost?

(a) 0.8sb = 4sa.
(b) (1-0.8)s â€“ab = 3s.
(c) 3(0.8a â€“ sb) = sa.
(d) (s-0.8s)(b-a) = 3.
(e) (s0.8s) / (b-a) = 3.
Joined: 31 Dec 1969
Location: India
Concentration: General Management, Strategy
GMAT 1: 710 Q49 V0
GMAT 2: 740 Q40 V50
GMAT 3: 700 Q48 V38
GPA: 3.6
Followers: 0

Kudos [?]: 89 [0], given: 87161

[#permalink]  01 Sep 2004, 09:17
Answer is A

Explanation:

O => Original Cost of s products @ $a/product: sa F => Final Cost of 80% s products @$b/product: 0.8sb
P => Profit Margin: Thrice the Original Cost: 2(sa)

Equation:

F-O = P
=> 0.8sb - sa = 3sa
=> 0.8sb = 4sa
Manager
Joined: 31 Dec 2003
Posts: 214
Location: US
Followers: 0

Kudos [?]: 8 [0], given: 0

[#permalink]  01 Sep 2004, 09:42
Here Bill bought s nos for a$each. And he sold 80% of s nos which is 0.8s for b$.

Total SP for 0.8s nos = 0.8sb.

Now when i calculate the profit how can i take the SP for 0.8s nos and CP for s nos. Isn't that wrong.The question also doesn't mention that the remaining 20% of s nos are defective/useless. If this information has been provided then we can say that the CP will be the CP of all the s nos.

I understand that if we do it the way mentioned above only can we arrive at one of the answer choices. Any other method is not taking me to any of the answer choices.

Can anyone please clarify this for me.
Thanks.
Manager
Joined: 02 Apr 2004
Posts: 224
Location: Utrecht
Followers: 1

Kudos [?]: 13 [0], given: 0

[#permalink]  01 Sep 2004, 12:00
I have A as answer too.

I first tried without actual numbers but got stuck a little.
Then I picked:

a = 2
b = 8
s = 100

and A gives then $640 =$640

Correct me if I am wrong.

Regards,

Alex
Manager
Joined: 31 Aug 2004
Posts: 169
Location: Vancouver, BC, Canada
Followers: 1

Kudos [?]: 4 [0], given: 0

Re: PS - RT2 [#permalink]  01 Sep 2004, 14:17
anuramm wrote:
10. The price of a product is $a. Bill bought s products and then sold 80 percents of them$b. which of the following represents the whole deal if Billâ€™s profit was three times the cost?

(a) 0.8sb = 4sa.
(b) (1-0.8)s â€“ab = 3s.
(c) 3(0.8a â€“ sb) = sa.
(d) (s-0.8s)(b-a) = 3.
(e) (s0.8s) / (b-a) = 3.

I have a bit hard time to get the question right. There are 2 blindpoints that are confusing me:

1. Bill bought s products and then sold 80 percents of "s products" $b. Does this mean each unit is sold for$b or total amount of the selling of this 80% s products $b? 2. "...if Bill's profit is three times the cost", does this mean three times the cost of all s units of this product or three times the cost of 80% of this product? Let's say each unit is sold for$b, and it is three times the cost of that 80% units

Initially Bill bought s units of this particular item for $a each, so total cost of all units is "a*s". Bill sold 80% of these units, and the cost for these 80% units is "0.8*a*s". He sold each unit for$b per pcs, and he sold 80% of them; so the total selling price for this 80% is "0.8*s*b".

Total profit is revenue - cost = 0.8sb-0.8as. This profit is three times the cost of all s units.

So 0.8sb-0.8as=3*0.8as, 0.8sb-0.8as=2.4as, 0.8sb=2.4as

and there is no matching answer.

GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5078
Location: Singapore
Followers: 22

Kudos [?]: 184 [0], given: 0

[#permalink]  01 Sep 2004, 18:42
Purchasing cost = $sa 80% of s = 0.8s sold them for$b, so $0.8sb Profit = 0.8sb - sa = 3sa 0.8sb = 4sa (A) is the answer Senior Manager Joined: 07 Oct 2003 Posts: 358 Location: Manhattan Followers: 2 Kudos [?]: 7 [0], given: 0 [#permalink] 15 Sep 2004, 18:42 this question never got resolved if A is indeed the OA, then how can we assume that the remaining 20% of the product didn't get sold? [#permalink] 15 Sep 2004, 18:42 Similar topics Replies Last post Similar Topics: 1 A company sells Z products, and price per product is y. If the cost of 1 26 Oct 2014, 22:39 Manufacturers sometimes discount the price of a product to 0 29 Jun 2012, 04:54 13 Manufacturers sometimes discount the price of a product to 37 17 Jul 2006, 21:10 In a certain store, any product can be bought with coins of 2 24 Mar 2008, 11:21 Normally, increases in the price of a product decrease its 16 28 Jul 2006, 17:06 Display posts from previous: Sort by # The price of a product is$a. Bill bought s products and

 Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.