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05 Mar 2020, 08:02
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If a jewelry merchant bought a particular ring for $10,000 and sold the ring to Judith, how much did Judith pay for the ring?
(1) The merchant’s profit from the sale was 50%.
(2) The amount that the merchant paid for the ring was two-thirds the amount that Judith paid for the ring.
(1) The merchant’s profit from the sale was 50%.
(2) The amount that the merchant paid for the ring was two-thirds the amount that Judith paid for the ring.
11 Mar 2020, 22:59
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A very simple question on the topic of Profit and Loss. We need to find out the CP of Judith which is essentially the SP of the merchant.
Profit = SP – CP. Therefore, SP = CP + Profit.
CP of Merchant = $10,000.
From statement I alone, the merchant’s profit from the sale was 50%. Remember that profit percentage is always calculated with reference to CP. Therefore, what this data is telling us is that the profit made by the merchant = 50% of 10,000 = $ 5,000.
Knowing the profit and the CP, the SP can be found out uniquely by using the equation given above. Statement I alone is sufficient. Answer options B, C and E can be eliminated. Possible answer options are A or D.
From statement II alone, CP of merchant = (\(\frac{2}{3}\)) CP of Judith which is the same as saying,
CP of merchant = (\(\frac{2}{3}\)) SP of merchant.
We know the CP of the merchant, it’s not hard to find out the SP from the above equation. Statement II alone is sufficient to find the SP. Answer option A can be eliminated.
The correct answer option is D.
Hope that helps!
Profit = SP – CP. Therefore, SP = CP + Profit.
CP of Merchant = $10,000.
From statement I alone, the merchant’s profit from the sale was 50%. Remember that profit percentage is always calculated with reference to CP. Therefore, what this data is telling us is that the profit made by the merchant = 50% of 10,000 = $ 5,000.
Knowing the profit and the CP, the SP can be found out uniquely by using the equation given above. Statement I alone is sufficient. Answer options B, C and E can be eliminated. Possible answer options are A or D.
From statement II alone, CP of merchant = (\(\frac{2}{3}\)) CP of Judith which is the same as saying,
CP of merchant = (\(\frac{2}{3}\)) SP of merchant.
We know the CP of the merchant, it’s not hard to find out the SP from the above equation. Statement II alone is sufficient to find the SP. Answer option A can be eliminated.
The correct answer option is D.
Hope that helps!
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