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A dealer sold good for $X. If Y percent was deducted for taxes and then $Z dollars was deducted for the cost of good, what was dealer’s gross profit after the deductions?

(1) X − Z = 400
(2) XY = 1100

The key here is to understand that Cost of Good in accounting terms is Direct labour, Raw materials, Manufacturing labour etc, which is essentially COST PRICE or MAKING COST of the product. Bunuel: Please confirm if GMAT have questions which tests information which needs specific subject matter expertise.

Profit after tax= Revenue-Tax-Cost of goods
Revenue-Tax=X-Y% of X of which is (100-Y)/100*X
Profit= X-\(\frac{XY}{100}\)-Z


Statement 1: X-Z, we dont know XY
Statement 2: We know XY but no X-Z

Together Sufficient as we have X-Z and XY
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