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

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Math Expert
Joined: 02 Sep 2009
Posts: 59722
An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

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09 Jul 2018, 00:55
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Difficulty:

25% (medium)

Question Stats:

77% (01:40) correct 23% (01:53) wrong based on 91 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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Joined: 07 Dec 2017
Posts: 1155
Re: An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

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09 Jul 2018, 01:51
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.

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WE: Supply Chain Management (Energy and Utilities)
Re: An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

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09 Jul 2018, 02:15
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)
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PKN

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

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09 Jul 2018, 11:08
1
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
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Re: An appliance store purchases a radio for m dollars. The store then sel  [#permalink]

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22 Nov 2019, 05:35
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Re: An appliance store purchases a radio for m dollars. The store then sel   [#permalink] 22 Nov 2019, 05:35
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