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Bunuel
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An appliance store purchases a radio for m dollars. The store then sel 09 Jul 2018, 00:55
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25% (medium)

Question Stats:

79% (01:42) correct 21% (02:03) wrong based on 188 sessions

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An appliance store purchases a radio for m dollars. The store then sells the same radio for n dollars. Was the appliance store's gross profit from the radio greater than twenty percent of its cost for the radio?

(1) m/n = 10/11

(2) n – m = 25
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A
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DavidTutorexamPAL
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An appliance store purchases a radio for m dollars. The store then sel 09 Jul 2018, 01:51
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Bunuel
An appliance store purchases a radio for m dollars. The store then sells the same radio for n dollars. Was the appliance store's gross profit from the radio greater than twenty percent of its cost for the radio?

(1) m/n = 10/11

(2) n – m = 25
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We'll translate the question into equations to avoid getting confused.
This is a Precise approach.

purchase - m
sell - n
profit = n - m
20% of cost = 0.2m
Question - is n-m > 0.2m --> is n > 1.2m

so we either need to know explicit values of m,n or we need to know the ratio between m and n.

(1) gives us exactly what we need - the ratio between m to n.
Sufficient.

(2) does not give us what we need as we do not know the ratio between m to n or their explicit values.
Insufficient.

(A) is our answer.
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An appliance store purchases a radio for m dollars. The store then sel 09 Jul 2018, 02:15
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Bunuel
An appliance store purchases a radio for m dollars. The store then sells the same radio for n dollars. Was the appliance store's gross profit from the radio greater than twenty percent of its cost for the radio?

(1) m/n = 10/11

(2) n – m = 25
Show more

Re-phrasing question stem:-

Is \(n-m>\frac{m}{5}\)?
Or, Is \(\frac{m}{n}\)>\(\frac{5}{6}\)? (Y/N)
St1:-\(\frac{m}{n}\) = \(\frac{10}{11}\)
Since \(\frac{10}{11}\)>\(\frac{5}{6}\), our answer to the question stem is Y.
So, sufficient.

St2:-n – m = 25
Since, we can't determine the ratio of m and n from the above info, hence insufficient.

Ans. (A)
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An appliance store purchases a radio for m dollars. The store then sel 09 Jul 2018, 11:08
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Bunuel
An appliance store purchases a radio for m dollars. The store then sells the same radio for n dollars. Was the appliance store's gross profit from the radio greater than twenty percent of its cost for the radio?

(1) m/n = 10/11

(2) n – m = 25
Show more

m - cost price of radio, n - selling price of radio

n - m = profit

Question: is n - m > 0.2m

hence is n > 1.2m ?


Statement 1: m/n = 10/11

Hence n = 1.1 m < 1.2 m

Statement 1 is Sufficient.


Statement 2: n - m = 25

Hence 25 > 0.2m

we get m < 125, we do not know n or the profit.

Statement 2 is Not Sufficient.



Answer A.



Thanks,
GyM
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An appliance store purchases a radio for m dollars. The store then sel 29 Mar 2023, 01:11
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Bunuel
An appliance store purchases a radio for m dollars. The store then sells the same radio for n dollars. Was the appliance store's gross profit from the radio greater than twenty percent of its cost for the radio?
(1) m/n = 10/11
(2) n – m = 25
Show more
Solution:
Pre Analysis:
  • CP of radio \(= m\)
  • SP of radio \(= n\)
  • Profit \(= n - m \)
  • Profit percentage \(= \frac{n-m}{m}\times 100\)
  • We are asked if \(\frac{n-m}{m}\times 100>20\)
    \(⇒n-m>0.2m\)
    \(⇒n>1.2m\)
  • We are asked if \(n>1.2m\) or not

Statement 1: m/n = 10/11
  • According to this statement, \(\frac{n}{m}=\frac{11}{10}=1.1\)
  • \(\frac{n}{m}=1.1\) means is not not greater than 1.2
  • Thus, statement 1 alone is sufficient and we can eliminate options B, C and E

Statement 2: n – m = 25
  • We know \(n-m>0.2m\)
    \(⇒25>0.2m\)
    \(⇒m<125\)
  • So, m has to be less than 125 which we don't know of


Hence the right answer is Option A
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