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Re: A computer dealer initially offered a laptop for sale at a price that [#permalink]
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Bunuel wrote:
A computer dealer initially offered a laptop for sale at a price that would have given him a 25% profit over his cost. What was his cost (in dollars)?

(1) The computer dealer eventually sold the laptop for $1150.
(2) After the laptop was rated highly by a PC magazine, the computer dealer raised the price 15% and sold it for a profit of $350.

Solution:
Pre Analysis:
  • Let the CP of the laptop be \($x\)
  • According to the question stem, the marked price of the laptop is \(MP=x(1+\frac{25}{100})=1.25x\)
  • We are asked the value of \(x\)

Statement 1: The computer dealer eventually sold the laptop for $1150
  • Accoridng to this statement \(SP=1150\) which doesn't help us in getting the value of x
  • If we knew that the laptop is sold at the MP with no further discount then we could have written 1150=1.\(\)25x
  • However, that information is not known
  • Thus, statement 1 alone is not sufficient and we can eliminate options A and D

Statement 2: After the laptop was rated highly by a PC magazine, the computer dealer raised the price 15% and sold it for a profit of $350
  • According to this question, \(SP=1.25x(1+\frac{15}{100})=1.25x\times 1.15\)\(\)
  • And \(1.25x\times 1.15-x=350\)\(\) which can be solved to get the value of x
  • Thus, statement 2 alone is sufficient

Hence the right answer is Option B
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Re: A computer dealer initially offered a laptop for sale at a price that [#permalink]
Isnt the question badly worded? If B is supposed to be the answer I think it should say "After the laptop was rated highly by a PC magazine, the computer dealer raised the initial price by 15% and sold it for a profit of $350". I answered "E" because in my mind the following could have happened:

1. Initial price set (25% profit)
2. Seller decides to discount by X% - maybe it was not selling fast enough
3. Review by the magazine comes out and he raises it again by 15%.

Happy to hear if my thinking is wrong.
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Re: A computer dealer initially offered a laptop for sale at a price that [#permalink]
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