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Re: An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?
GIVEN: SP of each car is either $20,000 or $30,000
To be Calculated: Total profit on selling 50 cars

(1) 20 cars were sold for $20,000
but we do not know the marked-up %for these.
Therefore, not sufficient.

(2) 30 cars were marked up 30%
Therefore remaining 20 were marked up 20%
but we do not know the MP and hence cannot calculate the SP

Both: 20 cars were sold for $20,000 and 20 were marked up 20%
Total SP = 20* 20,000 =400,000
1.2CP = 400,000
CP = 333,333

Similarly,
30 cars were sold for $30,000 and were marked up 30%
Total SP = 30* 30,000 =900,000
1.3CP = 900,000
CP = 692,307

And thus profit can be calculated!

Why is ans option C not correct?
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Re: An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
SSwami wrote:
An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?
GIVEN: SP of each car is either $20,000 or $30,000
To be Calculated: Total profit on selling 50 cars

(1) 20 cars were sold for $20,000
but we do not know the marked-up %for these.
Therefore, not sufficient.

(2) 30 cars were marked up 30%
Therefore remaining 20 were marked up 20%
but we do not know the MP and hence cannot calculate the SP

Both: 20 cars were sold for $20,000 and 20 were marked up 20%
Total SP = 20* 20,000 =400,000
1.2CP = 400,000
CP = 333,333

Similarly,
30 cars were sold for $30,000 and were marked up 30%
Total SP = 30* 30,000 =900,000
1.3CP = 900,000
CP = 692,307

And thus profit can be calculated!

Why is ans option C not correct?


Hey SSwami

IMO

The inline assumption went wrong here:
1) 20 were marked up 20%
This is a far fetched assumption, since the word some can be any number between 1 and 20, inclusive.

It could have been that 10 were marked up by 20% and the rest were sold at either $20,000 or $30,000.

They never mentioned that the split of marked up percentage's 20% and 30%, is done equally.

With that reason we will get different values for Profit.

Let me know if you think otherwise.
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Re: An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
Hi,
I am unable to understand the following 2 points:

1. The word "some" is not mentioned either in the question or in the statements.
2. The question clearly mentions "remaining are marked up at 30% of the cost price"
which makes it clear that there are only 2 groups of cars-
20%Marked up price and 30%Marked up price
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Re: An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
SSwami wrote:
Hi,
I am unable to understand the following 2 points:

1. The word "some" is not mentioned either in the question or in the statements.
2. The question clearly mentions "remaining are marked up at 30% of the cost price"
which makes it clear that there are only 2 groups of cars-
20%Marked up price and 30%Marked up price


SSwami, Kindly have a look here

An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?

(1) 20 cars were sold for $20,000
(2) 30 cars were marked up 30%
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Re: An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
s1 : 20 cars for $20000 each , implies remaining 30 cars for $30000 each . but no Link with the second half of the que statement (some marked with 20% of CP , and remaining with 30% of CP ). we don't know how many marked with 20 % and how many with 30%. without that info ( no of cars with 30% ,and 20 % ) we cant calculate the total profit .
hence not sufficient

S2 : 30 cars were marked with 30% , means remaining 20 cars marked with 20 % . BUT what's are their respective prices ?? means they belong to SP of 30000 or 20000 . We don't know
hence not sufficient

COMBINE S1 and S 2
SP : 20 cars for $20000 each , implies remaining 30 cars for $30000 each
AND
market price : 30 cars were marked with 30% , means remaining 20 cars marked with 20 %

but we don't know the connect between SP and market price .
means , if 20 cars SP is 20000 each they belong to which category (30% or 20%) .

hence both not suff
E ans
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An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?

(1) 20 cars were sold for $20,000
(2) 30 cars were marked up 30%

Bunuel

Can you explain why Option C is not correct.
Using Statement 1 we know 20 Cars were sold @ 20k and 30 Cars @30K
And Using Statement 2, we know 30 cars were sold @30% markup and remaining 20cars were sold @ 20% (Considering that question uses "either or " which means that there can be only two possibilities)

Now, combining both the statements would give us 20Cars@20K with 20% markup and 30cars@30k with 30% markup using which we can definitely calculate the profits.

Thanks
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Re: An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
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Expert Reply
umangshah wrote:
An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?

(1) 20 cars were sold for $20,000
(2) 30 cars were marked up 30%

Bunuel

Can you explain why Option C is not correct.
Using Statement 1 we know 20 Cars were sold @ 20k and 30 Cars @30K
And Using Statement 2, we know 30 cars were sold @30% markup and remaining 20cars were sold @ 20% (Considering that question uses "either or " which means that there can be only two possibilities)

Now, combining both the statements would give us 20Cars@20K with 20% markup and 30cars@30k with 30% markup using which we can definitely calculate the profits.

Thanks


Option C is not correct because, even when combining both statements, we don't have a direct relationship between the price at which each car was sold and its respective markup.

From Statement 1, we know:

  • 20 cars were sold at $20,000.
  • 30 cars were sold at $30,000.

From Statement 2, we know:

  • 20 cars had a markup of 20%.
  • 30 cars had a markup of 30%.

However, we can't definitively say from the given information that the 20 cars sold for $20,000 all had the 20% markup, nor can we say that the 30 cars sold for $30,000 all had the 30% markup. It's entirely possible, for example, that some of the $20,000 cars had a 30% markup and some of the $30,000 cars had a 20% markup. Without this clarity, we can't accurately calculate the total profit. Thus, Option C, which implies combining both statements gives a definite answer, is incorrect.
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Re: An auto dealer sells each car at either $20,000 or $30,000. Some cars [#permalink]
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