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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

A store purchased a Brand C computer for the same amount [#permalink]

Show Tags

26 Apr 2007, 05:53

00:00

A

B

C

D

E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct
0% (00:00) wrong based on 1 sessions

HideShow timer Statistics

This topic is locked. If you want to discuss this question please re-post it in the respective forum.

A store purchased a Brand C computer for the same amount that it paid for a Brand D computer and then sold them both at higher prices. The storeтАЩs gross profit on the Brand C computer was what percent greater than its gross profit on the Brand D computer?

(1) The price at which the store sold the Brand C computer was 15 percent greater than the price at which the store sold the Brand D computer.
(2) The storeтАЩs gross profit on the Brand D computer was $300.

The question asks us to determine what percent greater is Brand C's gross profit than Brand D's gross profit.

Here's how I figured this out....

Sc=selling price of Brand C
Sd=selling price of Brand D
Pc=price/cost of C
Pd=price/cost of D
Gc=gross profit of C
Gd=gross profit of D

The equation that needs to be solved is:
(Gc-Gd)/Gc

[1] this tells us that Sc=1.15(Sd)

plug this into the equation for gross profit for C:
Sc-Pc=Gc --> 1.15(Sd)-Pc=Gc --> we can sustitute Pd for Pc because we know from the question stem that they are equal.
Therefore, 1.15(Sd)-Pd=Gc

Cost price of the computers are the same.
Statement 1

Implies that the SP of C = 1.15 SP of D
the equation is reduced to G.P of C- G.P of D/ G.P of D
= 1.15 x- CP -x+CP/ x- CP , where x= Selling price of D, 1.15x= SP of C, CP= cost price of computers ( CP of C= CP of D)

Equation is reduced to 0.15x/ x- CP * 100

Insufficient

Statement 2
GP of D = 300
doesnt not tell us anything about the SP , insufficuent data

Combing statement 1 &2

300= x- CP,
adding this to the previous reduced equation we get
( 0.15x/ x-x+300) *100= ).05 x
the value again depends on x.
so insufficient

The question asks Pc/Pd = (price C - cost)/(price D - cost)

cost C = cost D = cost

From S1: price C = 1.15 price D ; we don't know the 'cost' -> Insuff
From S2: Pd = 300 = price D - cost; when we plug this information into the formula Pc/Pd we still have 'cost' as a variable ---> Insuff

S1 and S2: the 'cost' is still unknown ---> Insuff

the question is asking for gross profit...which means I need to know the total number of units sold for each brand..we have no such info given...

for all i know the store sold 1 brand C computer..and 10 brand B computer etc..the gross profit would be different if the store sold 10 brand C computers and 10 brand D computers...