GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 22 Sep 2018, 13:58

### GMAT Club Daily Prep

#### 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

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

# All of the furniture for sale at Al s Discount Furniture is

Author Message
TAGS:

### Hide Tags

Senior Manager
Joined: 24 Feb 2008
Posts: 348
Schools: UCSD ($) , UCLA, USC ($), Stanford
All of the furniture for sale at Al s Discount Furniture is  [#permalink]

### Show Tags

16 Mar 2008, 14:53
2
9
00:00

Difficulty:

95% (hard)

Question Stats:

32% (01:07) correct 68% (01:05) wrong based on 367 sessions

### HideShow timer Statistics

All of the furniture for sale at Al’s Discount Furniture is offered for less than the manufacturer’s suggested retail price (MSRP). Once a year, Al’s holds a clearance sale. If Jamie purchased a certain desk during the sale, did she get a discount of more than 50% of Al’s regular price for the desk?

(1) Al’s regular price for the desk is 60%, rounded to the nearest percent, of the MSRP of $2000. (2) The sale price was$601 less than Al’s regular price for the desk.

_________________

Best AWA guide here: http://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html

Manager
Status: Employed
Joined: 17 Nov 2011
Posts: 87
Location: Pakistan
GMAT 1: 720 Q49 V40
GPA: 3.2
WE: Business Development (Internet and New Media)
Re: All of the furniture for sale at Al s Discount Furniture is  [#permalink]

### Show Tags

17 Feb 2012, 20:22
3
2
Answer should be E. Here is how:

All of the furniture for sale at Al’s Discount Furniture is offered for less than the manufacturer’s suggested retail price (MSRP). Once a year, Al’s holds a clearance sale. If Jamie purchased a certain desk during the sale, did she get a discount of more than 50% of Al’s regular price for the desk?

Statement A: Al’s regular price for the desk is $$60%$$ , rounded to the nearest percent, of the MSRP of $$2000$$.

$$60%$$ could be $$59.5%$$ or $$60.4%$$. We also know that MSRP $$=2000$$

So there could be $$2$$ possible values for the Sale Price. Let $$x$$ be the regular price.

$$x=\frac{{59.5}}{100}*2000=1190$$

or
$$x=\frac{{60.4}}{100}*2000=1208$$

We now need the price that Jamie bought it for and Statement A does not provide it... So Insufficient

Statement 2: The sale price was $601 less than Al’s regular price for the desk. We do not know the regular price so the statement is clearly insufficient. Statement 1 & 2 Combined: We know the two possibilities of the Regular price, $$1190$$ & $$1208$$ If Jamie bought it for $$1190$$ , then YES she did buy it at a discount greater than $$50%$$ for obvious reasons. If Jamie bought it for $$1208$$ , then NO she did not buy it at a discount greater than $$50%$$ for obvious reasons. 2 different answers even with the statements combined. Hence E _________________ "Nowadays, people know the price of everything, and the value of nothing." Oscar Wilde ##### General Discussion VP Joined: 28 Dec 2005 Posts: 1472 Re: DS: Al’s Discount Furniture [#permalink] ### Show Tags 16 Mar 2008, 15:24 I bet its got something to do with the "rounded to the nearest percent" in stat 1. is the answer E ? If the 60 was rounded to the nearest percent, that means that the original price would change, and subsequently the sale price would change as well. Senior Manager Joined: 15 Aug 2007 Posts: 251 Schools: Chicago Booth Re: DS: Al’s Discount Furniture [#permalink] ### Show Tags 16 Mar 2008, 17:28 yup.. looks like the catch is rounding - it could be anynumber between 59.5 to 60.4 what is OA? and what is the soucre? SVP Joined: 30 Apr 2008 Posts: 1840 Location: Oklahoma City Schools: Hard Knocks Re: MGMAT furniture sale problem [#permalink] ### Show Tags 10 Jul 2008, 08:27 Answer C. Statement 1) This tells us what the price is that Al charges without the sale, but doesn't give any information as the the size of the discount for the clearance sale. Insufficient. Statement 2) This tells us the size of the discount, but we still don't know the original price Al charges for the item. Insufficient. Together, we know what Al charged originally as his "regular price" and we know the size of the discount. The price originally is 60% of$2,000, so that's $1,200. If the sale price is$601 less than the normal Al's price, that's greater than 50% of Al's price. This is sufficient.

nirimblf wrote:
All of the furniture for sale at Al’s Discount Furniture is offered for less than the manufacturer’s suggested retail price (MSRP). Once a year, Al’s holds a clearance sale. If Jamie purchased a certain desk during the sale, did she get a discount of more than 50% of Al’s regular price for the desk?

(1) Al’s regular price for the desk is 60%, rounded to the nearest percent, of the MSRP of $2000. (2) The sale price was$601 less than Al’s regular price for the desk.

_________________

------------------------------------
J Allen Morris
**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$. GMAT Club Premium Membership - big benefits and savings Intern Joined: 29 Jun 2008 Posts: 37 Re: MGMAT furniture sale problem [#permalink] ### Show Tags 10 Jul 2008, 08:43 Nope. That's what I thought. But it's a nasty trick question. Read statement 1 carefully. jallenmorris wrote: Answer C. Statement 1) This tells us what the price is that Al charges without the sale, but doesn't give any information as the the size of the discount for the clearance sale. Insufficient. Statement 2) This tells us the size of the discount, but we still don't know the original price Al charges for the item. Insufficient. Together, we know what Al charged originally as his "regular price" and we know the size of the discount. The price originally is 60% of 2,000, so that's 1,200. If the sale price is 601 less than the normal Al's price, that's greater than 50% of Al's price. This is sufficient. nirimblf wrote: All of the furniture for sale at Al’s Discount Furniture is offered for less than the manufacturer’s suggested retail price (MSRP). Once a year, Al’s holds a clearance sale. If Jamie purchased a certain desk during the sale, did she get a discount of more than 50% of Al’s regular price for the desk? (1) Al’s regular price for the desk is 60%, rounded to the nearest percent, of the MSRP of 2000. (2) The sale price was 601 less than Al’s regular price for the desk. SVP Joined: 30 Apr 2008 Posts: 1840 Location: Oklahoma City Schools: Hard Knocks Re: MGMAT furniture sale problem [#permalink] ### Show Tags 10 Jul 2008, 09:01 1 Ok....I am reading it carefully: (1) Al’s regular price for the desk is 60%, rounded to the nearest percent, of the MSRP of 2000. This tells us what Al's regular price for the desk is. It doesn't tell us anything about what she bought it for. I think I know what the trick is. We're told it's rounded to the nearst percent...which means Al's price could be 60.4999999999999999999%. This would mean that his price is anything less than 60.5% of the MSRP. 60.5% is 1210 so 12,09.99 is the most he can charge for the desk. Answer must be E then because even knowing the dollar amount of the discount means that 1209.99 - 601 is not a 50% dsicount, but because it's rounded, the % could also be 59.5%, which would mean 601 is greater than a 50% discount. Is this the trick? _________________ ------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

GMAT Club Premium Membership - big benefits and savings

Intern
Joined: 08 Jul 2008
Posts: 14
Re: MGMAT furniture sale problem  [#permalink]

### Show Tags

10 Jul 2008, 09:18
1
jallenmorris wrote:

(1) Al’s regular price for the desk is 60%, rounded to the nearest percent, of the MSRP of $2000. This tells us what Al's regular price for the desk is. It doesn't tell us anything about what she bought it for. I think I know what the trick is. We're told it's rounded to the nearst percent...which means Al's price could be 60.4999999999999999999%. This would mean that his price is anything less than 60.5% of the MSRP. 60.5% is$1210 so $12,09.99 is the most he can charge for the desk. Answer must be E then because even knowing the dollar amount of the discount means that$1209.99 - $601 is not a 50% dsicount, but because it's rounded, the % could also be 59.5%, which would mean$601 is greater than a 50% discount.

Is this the trick?

Good one Jallen! the discount could be anything n between 59.5% to 60.4999999... %
If we use these extremes to calculate the total discount would be
below 50% in case we use 59.5 %
above 50% in case we use 60.4999999... %.

thus both statements are insufficient.
Senior Manager
Joined: 19 Mar 2008
Posts: 344
Re: MGMAT furniture sale problem  [#permalink]

### Show Tags

10 Jul 2008, 09:23
3
nirimblf wrote:
All of the furniture for sale at Al’s Discount Furniture is offered for less than the manufacturer’s suggested retail price (MSRP). Once a year, Al’s holds a clearance sale. If Jamie purchased a certain desk during the sale, did she get a discount of more than 50% of Al’s regular price for the desk?

(1) Al’s regular price for the desk is 60%, rounded to the nearest percent, of the MSRP of $2000. (2) The sale price was$601 less than Al’s regular price for the desk.

Let X be the MSRP, Y be the Regular Price in Al's, and Z be the discounted prive in Al's

Given X > Y > Z
Task: find out if Z < 0.5 * Y

(1) alone is NOT sufficient. Because it only tells:
Y = (0.595 to 0.604) * X
X = 2000
So, Y = 1190 to 1208
Without any infomation about Z, we cannot conclude Z < 0.5 * Y

(2) alone is NOT sufficient. It only tells:
Z = Y - 601

(1) & (2) together is NOT sufficient
When Y = 1190, Z = 589
Z / Y = 589/1190 < 50%
When Y = 1208, Z = 607
Z / Y = 607/1208 > 50%

So Ans is E
SVP
Joined: 30 Apr 2008
Posts: 1840
Location: Oklahoma City
Schools: Hard Knocks
Re: MGMAT furniture sale problem  [#permalink]

### Show Tags

10 Jul 2008, 09:44
You all seem so smart coming in after I throw myself under the bus with the wrong answer at first Just kidding. It's a good question to use to remind us that every single word/phrase means something in these questions and we can't ignore them.

Good question!
_________________

------------------------------------
J Allen Morris
**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$. GMAT Club Premium Membership - big benefits and savings Intern Joined: 29 Jun 2008 Posts: 37 Re: MGMAT furniture sale problem [#permalink] ### Show Tags 10 Jul 2008, 10:59 jallenmorris wrote: You all seem so smart coming in after I throw myself under the bus with the wrong answer at first Just kidding. It's a good question to use to remind us that every single word/phrase means something in these questions and we can't ignore them. Good question! Thanks. Under a time pressure, who cares about the implications of "rounded to the nearest percent"... I know I didn't.. SVP Joined: 30 Apr 2008 Posts: 1840 Location: Oklahoma City Schools: Hard Knocks Re: MGMAT furniture sale problem [#permalink] ### Show Tags 10 Jul 2008, 11:45 just remember that MGMAT questions are harder than the real questions on the GMAT. I'm not sure how it really helps us to get caught by this question. It's really about reading and interpreting the words of the question. I've found GMAT problems to be more straight forward and not tricky like this one. Allen nirimblf wrote: jallenmorris wrote: You all seem so smart coming in after I throw myself under the bus with the wrong answer at first Just kidding. It's a good question to use to remind us that every single word/phrase means something in these questions and we can't ignore them. Good question! Thanks. Under a time pressure, who cares about the implications of "rounded to the nearest percent"... I know I didn't.. _________________ ------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

GMAT Club Premium Membership - big benefits and savings

Manager
Joined: 27 Oct 2011
Posts: 151
Location: United States
Concentration: Finance, Strategy
GPA: 3.7
WE: Account Management (Consumer Products)
Re: All of the furniture for sale at Al s Discount Furniture is  [#permalink]

### Show Tags

15 Feb 2012, 21:38
both statements are insufficient however since $600 is more than "less than 1200" we know that Jamie paid less that 50% _________________ DETERMINED TO BREAK 700!!! Board of Directors Joined: 17 Jul 2014 Posts: 2683 Location: United States (IL) Concentration: Finance, Economics GMAT 1: 650 Q49 V30 GPA: 3.92 WE: General Management (Transportation) Re: All of the furniture for sale at Al s Discount Furniture is [#permalink] ### Show Tags 09 Feb 2016, 19:06 chineseburned wrote: All of the furniture for sale at Al’s Discount Furniture is offered for less than the manufacturer’s suggested retail price (MSRP). Once a year, Al’s holds a clearance sale. If Jamie purchased a certain desk during the sale, did she get a discount of more than 50% of Al’s regular price for the desk? (1) Al’s regular price for the desk is 60%, rounded to the nearest percent, of the MSRP of$2000.
(2) The sale price was \$601 less than Al’s regular price for the desk.

I see where the trick is!!!
(1) - regular price, rounded TO THE NEAREST PERCENT is 60% of 2000, or 1200+. - alone is not sufficient.
(2) sale price is 601 less than regular price - alone is not sufficient.

1+2
if 60% -> then yes, he got more than 50% discount of the regular price
but what if the price is 1202? in this case, he did not buy at more than 50% discount.

suppose 1202 is regular price.
that is 1202/2000 or 601/1000 or 60.1%. 60.1 rounded to the nearest percent is 60%.
so E it is.
Non-Human User
Joined: 09 Sep 2013
Posts: 8153
Re: All of the furniture for sale at Al s Discount Furniture is  [#permalink]

### Show Tags

31 Jul 2018, 20:18
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: All of the furniture for sale at Al s Discount Furniture is &nbs [#permalink] 31 Jul 2018, 20:18
Display posts from previous: Sort by

# All of the furniture for sale at Al s Discount Furniture is

## Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.