It is currently 18 Nov 2017, 14:59

### 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 June
Open Detailed Calendar

# At the beginning of last month, a stationery store had in

Author Message
TAGS:

### Hide Tags

Manager
Joined: 05 Jun 2009
Posts: 112

Kudos [?]: 305 [0], given: 4

At the beginning of last month, a stationery store had in [#permalink]

### Show Tags

24 Oct 2009, 04:39
1
This post was
BOOKMARKED
00:00

Difficulty:

75% (hard)

Question Stats:

44% (00:57) correct 56% (01:01) wrong based on 125 sessions

### HideShow timer Statistics

At the beginning of last month, a stationery store had in stock 250 writing pads, which had cost the store \$0.75 each. During the same month the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

(1) Last month the store purchased 150 writing pads for \$ 0.80 each.
(2) Last month the total revenue from the sales of the writing pads was \$180.
[Reveal] Spoiler: OA

Last edited by Bunuel on 22 Jun 2013, 08:41, edited 3 times in total.

Kudos [?]: 305 [0], given: 4

Math Expert
Joined: 02 Sep 2009
Posts: 42249

Kudos [?]: 132612 [1], given: 12326

At the beginning of last month, a stationery store had in [#permalink]

### Show Tags

24 Oct 2009, 10:03
1
KUDOS
Expert's post
1
This post was
BOOKMARKED
At the biginning of last month, a stationery store had in stock 250 writing pads, which had cost the store \$0.75 each. During the same month the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

GMAT likes tricks.

We are asked to determine the cost of goods in the end of the month.

(1) Last month the store purchased 150 writing pads for \$ 0.80 each --> cost of goods at the beginning of the month=0.75*250, plus 150*0.8 store purchased during the month, BUT as long as we don't know how many pads store sold last month we cannot determine the number of pads left at the end of the month. Not sufficient.

(2) Last month the total revenue from the sales of the writing pads was \$180. Well this is clearly insufficient. Was any number purchased during the month? What was the selling price of a pad? Not sufficient.

(1)+(2) We know how many and at what price was purchased during the month, plus we are told the revenue was 180, but we don't know the selling price of one pad, thus cannot determine how many was sold and how many left.

_________________

Kudos [?]: 132612 [1], given: 12326

Manager
Joined: 07 Apr 2012
Posts: 124

Kudos [?]: 13 [0], given: 45

Location: United States
Concentration: Entrepreneurship, Operations
Schools: ISB '15
GMAT 1: 590 Q48 V23
GPA: 3.9
WE: Operations (Manufacturing)

### Show Tags

12 Sep 2013, 08:28
Bunuel wrote:
At the biginning of last month, a stationery store had in stock 250 writing pads, which had cost the store \$0.75 each. During the same month the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

GMAT likes tricks.

We are asked to determine the cost of goods in the end of the month.

(1) Last month the store purchased 150 writing pads for \$ 0.80 each --> cost of goods at the beginning of the month=0.75*250, plus 150*0.8 store purchased during the month, BUT as long as we don't know how many pads store sold last month we can not determine the number of pads left at the end of the month. Not sufficient.

(2) Last month the total revenue from the sales of the writing pads was \$180. Well this is clearly insufficient. Was any number purchased during the month? What was the selling price of a pad? Not sufficient.

(1)+(2) We know how many and at what price was purchased during the month, plus we are told the revenue was 180, but we don't know the selling price of one pad, thus can not determine how many was sold and how many left.

Is it necessary that a sale was made last month ?

Kudos [?]: 13 [0], given: 45

Math Expert
Joined: 02 Sep 2009
Posts: 42249

Kudos [?]: 132612 [0], given: 12326

### Show Tags

12 Sep 2013, 08:38
ygdrasil24 wrote:
Bunuel wrote:
At the biginning of last month, a stationery store had in stock 250 writing pads, which had cost the store \$0.75 each. During the same month the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

GMAT likes tricks.

We are asked to determine the cost of goods in the end of the month.

(1) Last month the store purchased 150 writing pads for \$ 0.80 each --> cost of goods at the beginning of the month=0.75*250, plus 150*0.8 store purchased during the month, BUT as long as we don't know how many pads store sold last month we can not determine the number of pads left at the end of the month. Not sufficient.

(2) Last month the total revenue from the sales of the writing pads was \$180. Well this is clearly insufficient. Was any number purchased during the month? What was the selling price of a pad? Not sufficient.

(1)+(2) We know how many and at what price was purchased during the month, plus we are told the revenue was 180, but we don't know the selling price of one pad, thus can not determine how many was sold and how many left.

Is it necessary that a sale was made last month ?

(2) says: last month the total revenue from the sales of the writing pads was \$180.
_________________

Kudos [?]: 132612 [0], given: 12326

Manager
Joined: 07 Apr 2012
Posts: 124

Kudos [?]: 13 [0], given: 45

Location: United States
Concentration: Entrepreneurship, Operations
Schools: ISB '15
GMAT 1: 590 Q48 V23
GPA: 3.9
WE: Operations (Manufacturing)

### Show Tags

12 Sep 2013, 10:12
Is it necessary that a sale was made last month ?[/quote]

(2) says: last month the total revenue from the sales of the writing pads was \$180.[/quote]

But A does not talk anything related to sales, if B says it could be extraneous info. If A in isolation is considered, we have a valid solution.

Do you think such debatable questions can come up in GMAT, if yes then it must be 800 question , otherwise there is nothing in the question.

Kudos [?]: 13 [0], given: 45

Math Expert
Joined: 02 Sep 2009
Posts: 42249

Kudos [?]: 132612 [0], given: 12326

### Show Tags

12 Sep 2013, 11:06
ygdrasil24 wrote:
Is it necessary that a sale was made last month ?

(2) says: last month the total revenue from the sales of the writing pads was \$180.[/quote]

But A does not talk anything related to sales, if B says it could be extraneous info. If A in isolation is considered, we have a valid solution.

Do you think such debatable questions can come up in GMAT, if yes then it must be 800 question , otherwise there is nothing in the question.[/quote]

It's a GMAT Prep question and frankly I don't see anything debatable about its validity.

Also, it's not necessary that the stem, and each statement to talk about the same thing.
_________________

Kudos [?]: 132612 [0], given: 12326

Senior Manager
Joined: 21 Jan 2010
Posts: 329

Kudos [?]: 229 [0], given: 12

### Show Tags

12 Sep 2013, 17:17
Bunuel wrote:
At the biginning of last month, a stationery store had in stock 250 writing pads, which had cost the store \$0.75 each. During the same month the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

GMAT likes tricks.

We are asked to determine the cost of goods in the end of the month.

(1) Last month the store purchased 150 writing pads for \$ 0.80 each --> cost of goods at the beginning of the month=0.75*250, plus 150*0.8 store purchased during the month, BUT as long as we don't know how many pads store sold last month we can not determine the number of pads left at the end of the month. Not sufficient.

(2) Last month the total revenue from the sales of the writing pads was \$180. Well this is clearly insufficient. Was any number purchased during the month? What was the selling price of a pad? Not sufficient.

(1)+(2) We know how many and at what price was purchased during the month, plus we are told the revenue was 180, but we don't know the selling price of one pad, thus can not determine how many was sold and how many left.

Kudos [?]: 229 [0], given: 12

Intern
Joined: 29 Jan 2013
Posts: 44

Kudos [?]: 47 [0], given: 24

### Show Tags

12 Sep 2013, 19:30
Bluelagoon wrote:
Bunuel wrote:
At the biginning of last month, a stationery store had in stock 250 writing pads, which had cost the store \$0.75 each. During the same month the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

GMAT likes tricks.

We are asked to determine the cost of goods in the end of the month.

(1) Last month the store purchased 150 writing pads for \$ 0.80 each --> cost of goods at the beginning of the month=0.75*250, plus 150*0.8 store purchased during the month, BUT as long as we don't know how many pads store sold last month we can not determine the number of pads left at the end of the month. Not sufficient.

(2) Last month the total revenue from the sales of the writing pads was \$180. Well this is clearly insufficient. Was any number purchased during the month? What was the selling price of a pad? Not sufficient.

(1)+(2) We know how many and at what price was purchased during the month, plus we are told the revenue was 180, but we don't know the selling price of one pad, thus can not determine how many was sold and how many left.

I was stumbled like the way you did and went wrong. But if you c the question ' What was the total amount spent by the store on the writing pads it had in stock at the end of last month?'

The question asks about the amount the store spent on books that were left at the end of the month, option A gives total amount spent on books that are initially available with the store. No information is given about the books present in the store at the end of the month. We need the number of books available with store at the end of the month. The store may/may not have sales in the month

Kudos [?]: 47 [0], given: 24

Math Expert
Joined: 02 Sep 2009
Posts: 42249

Kudos [?]: 132612 [0], given: 12326

### Show Tags

13 Sep 2013, 00:09
Bluelagoon wrote:
Bunuel wrote:
At the biginning of last month, a stationery store had in stock 250 writing pads, which had cost the store \$0.75 each. During the same month the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

GMAT likes tricks.

We are asked to determine the cost of goods in the end of the month.

(1) Last month the store purchased 150 writing pads for \$ 0.80 each --> cost of goods at the beginning of the month=0.75*250, plus 150*0.8 store purchased during the month, BUT as long as we don't know how many pads store sold last month we can not determine the number of pads left at the end of the month. Not sufficient.

(2) Last month the total revenue from the sales of the writing pads was \$180. Well this is clearly insufficient. Was any number purchased during the month? What was the selling price of a pad? Not sufficient.

(1)+(2) We know how many and at what price was purchased during the month, plus we are told the revenue was 180, but we don't know the selling price of one pad, thus can not determine how many was sold and how many left.

Question asks: What was the total amount spent by the store on the writing pads it had in stock at the end of last month?
_________________

Kudos [?]: 132612 [0], given: 12326

Retired Moderator
Joined: 27 Aug 2012
Posts: 1184

Kudos [?]: 1958 [0], given: 152

Re: At the beginning of last month, a stationery store had in [#permalink]

### Show Tags

13 Sep 2013, 13:57
Hi Bunuel,
Just curious - why we're assuming that stored had sold some of the writing pads during the month? It's nowhere mentioned explicitly. Right..? In that way A should be the answer!

P.S: I know it's an official question so it has to be correct but I'm not able to get that properly. Please help me to connect that chord.
_________________

Kudos [?]: 1958 [0], given: 152

Manager
Joined: 06 Jul 2013
Posts: 103

Kudos [?]: 34 [0], given: 42

GMAT 1: 620 Q48 V28
GMAT 2: 700 Q50 V33
Re: At the beginning of last month, a stationery store had in [#permalink]

### Show Tags

10 Oct 2013, 07:07
I have another question. Even if we had known how many pads were sold, could we calcuate the amount spend on pad at the end of the month.
Because we bought 150 at different price and we sold 180. We do not know how many were from \$0.80 stock.

Thanks
Amit

Kudos [?]: 34 [0], given: 42

Current Student
Joined: 06 Sep 2013
Posts: 1972

Kudos [?]: 740 [0], given: 355

Concentration: Finance
Re: At the beginning of last month, a stationery store had in [#permalink]

### Show Tags

07 Feb 2014, 05:26
AMITAGARWAL2 wrote:
I have another question. Even if we had known how many pads were sold, could we calcuate the amount spend on pad at the end of the month.
Because we bought 150 at different price and we sold 180. We do not know how many were from \$0.80 stock.

Thanks
Amit

AMIT That's exactly it!

To summarize: So we know what the initial stock price is and we know that the store made only one purchase and know the total cost of the purchase. But we need to know about the pads sold. Now, if the store sold pads for 180 that's great but we still don't know what inventory remains since we have 2 different product costs (Remember FIFO and LIFO and all that stuff...). Well that's exactly it. Answer is E

Hope its clear now
Cheers
J

Kudos [?]: 740 [0], given: 355

Re: At the beginning of last month, a stationery store had in   [#permalink] 07 Feb 2014, 05:26
Display posts from previous: Sort by