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16 Oct 2018, 02:18
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
52% (02:12) correct
48%
(02:21)
wrong
based on 73
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A used car reseller was paid a total of $5,000 for a used car. The reseller’s only costs for the car were for buying the used car and repairing the car. Was the reseller’s profit from selling the used car more than $1,500?
(1) The reseller’s total cost was three times the cost of buying the car.
(2) The reseller’s profit was more than the cost of repairing the car.
(1) The reseller’s total cost was three times the cost of buying the car.
(2) The reseller’s profit was more than the cost of repairing the car.
MsInvBanker
16 Oct 2018, 02:24
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A used car reseller was paid a total of $5,000 for a used car. The reseller’s only costs for the car were for buying the used car and repairing the car. Was the reseller’s profit from selling the used car more than $1,500?
(1) The reseller’s total cost was three times the cost of buying the car.
We do not know how much the car was bought for. INSUFFICIENT.
(2) The reseller’s profit was more than the cost of repairing the car.
There are no dollar values to go on and decipher if the said profit was more or less than $1,500
Together
We still do not know the total cost incurred, so calculating the profit is not possible.
Answer has to be E.
(1) The reseller’s total cost was three times the cost of buying the car.
We do not know how much the car was bought for. INSUFFICIENT.
(2) The reseller’s profit was more than the cost of repairing the car.
There are no dollar values to go on and decipher if the said profit was more or less than $1,500
Together
We still do not know the total cost incurred, so calculating the profit is not possible.
Answer has to be E.
03 Mar 2020, 03:07
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Bunuel
A used car reseller was paid a total of $5,000 for a used car. The reseller’s only costs for the car were for buying the used car and repairing the car. Was the reseller’s profit from selling the used car more than $1,500?
(1) The reseller’s total cost was three times the cost of buying the car.
(2) The reseller’s profit was more than the cost of repairing the car.
(1) The reseller’s total cost was three times the cost of buying the car.
(2) The reseller’s profit was more than the cost of repairing the car.
Solution
Step 1: Analyse Question Stem
- • SP = $ 5000
• CP= cost of buying + repairing cost.
• Profit = 5000 – the cost of buying – repairing cost.
Step 2: Analyse Statements Independently (And eliminate options) – AD/BCE
Statement 1: The reseller’s total cost was three times the cost of buying the car.
- • Let x be the cost of buying the car.
- o Total cost = 3x
o Cost of repairing = 3x – x = 2x
- o We don’t know the value of x; we cannot find the answer.
Statement 2: The seller’s profit was more than the cost of repairing the car.
- • Profit > repairing the car.
o We don’t know the cost of repairing the car.
Step 3: Analyse Statements by combining.
From statement 1: profit = 5000 – 3x
From statement 2: Profit > 2x or 2x < Profit
By combining both the statements.
- • 2x < 5000 -3x
• 5x < 5000
• x < 1000
• Total cost < 3*1000=3000
- o Profit > 5000-3000
o Profit > 2000
o Profit > $1500
This is a typical E- trap and most of the students will mark E as the answer but the correct answer is not option E.
If you want to learn how to tackle such traps with confidence, read our articles on DS questions. The link is given in our signature.
