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Grocery store's profit equals sales minus the cost and taxes

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Intern
Joined: 11 Apr 2012
Posts: 37
Grocery store's profit equals sales minus the cost and taxes  [#permalink]

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28 Aug 2012, 23:04
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Difficulty:

35% (medium)

Question Stats:

65% (01:31) correct 35% (01:14) wrong based on 181 sessions

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Grocery store's profit equals sales minus the cost and taxes. By what percent did the grocery store's profit changed on July 25,2005 When sales, cost, and taxes all increased?

(1) Grocery store's sales increased by 5 percent on july 25,2005.
(2) Grocery store's cost and taxes increased by 25 percent on July 25,2005.
Director
Joined: 22 Mar 2011
Posts: 601
WE: Science (Education)
Re: Grocery store's profit equals sales minus the cost and taxes  [#permalink]

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29 Aug 2012, 00:02
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vinay911 wrote:
Grocery store's profit equals sales minus the cost and taxes. By what percent did the grocery store's profit changed on July 25,2005 When sales, cost, and taxes all increased?

(1) Grocery store's sales increased by 5 percent on july 25,2005.
(2) Grocery store's cost and taxes increased by 25 percent on July 25,2005.

P - profit
S - sales
C - cost
T - taxes
So, P = S - (C + T)

(1) & (2) obviously neither one sufficient alone

(1) and (2) together:

$$\frac{P_{new}}{P_{old}}=\frac{1.05S-1.25(C+T)}{S-(C+T)},$$ again not sufficient.

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Manager
Status: exam is close ... dont know if i ll hit that number
Joined: 06 Jun 2011
Posts: 152
Location: India
GMAT Date: 10-09-2012
GPA: 3.2
Re: Grocery store's profit equals sales minus the cost and taxes  [#permalink]

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30 Aug 2012, 20:45
depending on the numbers the percentages will change and when there are same figures for both one and two this can happen

if not this will not happen
as no such condition is given this cannot happen

so i dont think we further need to solve it but straight forward go with e
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Intern
Joined: 28 Aug 2012
Posts: 44
Location: Austria
GMAT 1: 770 Q51 V42
Re: Grocery store's profit equals sales minus the cost and taxes  [#permalink]

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31 Aug 2012, 06:51
Cost and taxes could be low compared to sales and thus the 25% increase doesn't bother us much and we get to keep most of the 5% increase in sales. Or cost and taxes are high and thus the 25% increase is more than the increase in sales.

So we can't even say, whether profits are growing or shrinking.
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Joined: 09 Sep 2013
Posts: 8410
Re: Grocery store's profit equals sales minus the cost and taxes  [#permalink]

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25 Jul 2018, 12:43
Hello from the GMAT Club BumpBot!

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Re: Grocery store's profit equals sales minus the cost and taxes &nbs [#permalink] 25 Jul 2018, 12:43
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