blowice27 wrote:
For every dollar of sales charged to a certain bank credit card, a department store must pay $0.003 to the bank that issued the credit card. What percentage of the department store's sales transactions last month were credit card transactions?
(1) The store made 2,000 sales last month.
(2) The store took in a total of $250,000 last month and paid $300 to the bank that issued the credit card.
Solution
Step 1: Analyse Question Stem
• For one dollar of sales through credit card, the bank gets = \($0.003\)
We need to find; what percentage of the store’s sales transactions last month were credit card transactions?
• \(\frac{(Number\ of\ transactions\ through\ credit\ card)}{(Total\ number\ of\ transactions)}*100\)
• We need to find the ratio of the number of transactions through credit cards to total transactions.
Step 2: Analyse Statements Independently (And eliminate options) – AD/BCE
Statement 1: The store made \(2000\) sales last month.
• Total number of transactions = \(2000\)
• We don’t know the number of transactions through credit cards; therefore, we can’t find the required percent.
Hence, statement 1 is not sufficient, we can eliminate the answer Options A and D.
Statement 2: The store took a total of \($ 250,000\) last month and paid \($300\) to the bank that issued the credit card.
• We can find the amount of transactions which were done through credit card, we cannot find the number of transactions through credit card or the total number of transactions; therefore, we cannot find the required percentage.
Hence, statement 2 is not sufficient, we can eliminate answer options B
Step 3: Analyse Statements by combining.
From statement 1: Total number of transactions = 2000
From statement 2: Amount of transaction through credit card and amount of total sales.
Even after combining both the statements we can’t find the ratio of number of the transaction through credit card to the total number of transactions. Thus, we cannot find the required percentage.
Hence, the correct answer is
Option E.
Note:- Most of the students will mark B as the answer, but in this problem, we are asked to find the percentage of transactions through credit card not amount of transaction through credit card.