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A jewelry dealer initially offered a bracelet for sale at an

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Senior Manager
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Joined: 16 Jan 2009
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Concentration: Technology, Marketing
GMAT 1: 700 Q50 V34
GPA: 3
WE: Sales (Telecommunications)
A jewelry dealer initially offered a bracelet for sale at an [#permalink]

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New post 18 Jun 2009, 13:40
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A jewelry dealer initially offered a bracelet for sale at an asking price that would give a profit to the dealer of 40 percent of the original cost. What was the original cost of the bracelet?
(1) After reducing this asking price by 10 percent, the jewelry dealer sold the bracelet at a profit of $403.
(2) The jewelry dealer sold the bracelet for $1,953.
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Re: DS : original cost [#permalink]

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New post 19 Jun 2009, 21:43
B

Let asking price = SP
Let cost price = CP
As per question,
100(SP -CP)/CP = 40
We need to find CP.

Stmt 1.
New asking price = .90SP
Profit = 403
.90SP - CP = 403................................1
Can not determine CP. So insuff.

Stmt 2.
SP = 1953
From question stem,
100(1953 - CP)/CP = 40
or 100(1953 - cp) = 40cp
or CP = 1220.62
Suff.

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Re: DS : original cost [#permalink]

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New post 19 Jun 2009, 23:07
I would say, statement 1 is sufficient to answer.

A jewelry dealer initially offered a bracelet for sale at an asking price that would give a profit to the dealer of 40 percent of the original cost. What was the original cost of the bracelet?

lets say, Original cost : x
Initially Asking price: y = x + 40x/100 = 7x/5
Now,
(1) After reducing this asking price by 10 percent, the jewelry dealer sold the bracelet at a profit of $403.
7x/5 (1-10/100)= x + 403.
By solving this, we would get the value of x, which is the Original cost price.

(2) The jewelry dealer sold the bracelet for $1,953.
We have no idea about the profit he made from the initial asking price to the final selling price. This statement does not help.

Please correct me where ever I am wrong.
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Re: DS : original cost [#permalink]

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New post 20 Jun 2009, 12:51
I agree that stmt. A is suff.
But whats the problem with B?
The selling price in stmt. 2 refers to the asking price of question stem ?
if yes then suff.
if no then insuff.

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Re: DS : original cost [#permalink]

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New post 20 Jun 2009, 23:19
mdfrahim wrote:
I agree that stmt. A is suff.
But whats the problem with B?
The selling price in stmt. 2 refers to the asking price of question stem ?
if yes then suff.
if no then insuff.


I find 2nd stmnt insufficient because according to the question, there was an initial price and then a final price..
we have calculated that the initial price was 7x/5 and the bracelet was actually sold for $1,953.
We have no information to link the 2, so B is insufficient in itself.

In DS questions, we always first look to see if any of the given stmnts is sufficient in itself. If it is them that become the answer, otherwise we look for combination of the 2.

I still think A would be the answer.
Correct me please.
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Re: DS : original cost   [#permalink] 20 Jun 2009, 23:19
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