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

 It is currently 17 Nov 2018, 15:52

# Join here

### 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

## Events & Promotions

###### Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### FREE Quant Workshop by e-GMAT!

November 18, 2018

November 18, 2018

07:00 AM PST

09:00 AM PST

Get personalized insights on how to achieve your Target Quant Score. November 18th, 7 AM PST
• ### How to QUICKLY Solve GMAT Questions - GMAT Club Chat

November 20, 2018

November 20, 2018

09:00 AM PST

10:00 AM PST

The reward for signing up with the registration form and attending the chat is: 6 free examPAL quizzes to practice your new skills after the chat.

# An appliance store purchases a radio for m dollars. The store then sel

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 50623
An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

### Show Tags

08 Jul 2018, 23:55
00:00

Difficulty:

35% (medium)

Question Stats:

71% (01:38) correct 29% (01:56) wrong based on 63 sessions

### HideShow timer Statistics

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

_________________
examPAL Representative
Joined: 07 Dec 2017
Posts: 799
Re: An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

### Show Tags

09 Jul 2018, 00:51
Bunuel wrote:
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

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.

_________________

Halloween SALE at exmaPAL!

Save 25% on any GMAT/GRE course! Claim it today.

Director
Status: Learning stage
Joined: 01 Oct 2017
Posts: 930
WE: Supply Chain Management (Energy and Utilities)
Re: An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

### Show Tags

09 Jul 2018, 01:15
Bunuel wrote:
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

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)
_________________

Regards,

PKN

Rise above the storm, you will find the sunshine

Director
Joined: 14 Dec 2017
Posts: 508
Re: An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

### Show Tags

09 Jul 2018, 10:08
Bunuel wrote:
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

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.

Thanks,
GyM
_________________
Re: An appliance store purchases a radio for m dollars. The store then sel &nbs [#permalink] 09 Jul 2018, 10:08
Display posts from previous: Sort by