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26 Apr 2019, 03:33
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55% (hard)

Question Stats:

56% (01:11) correct 44% (01:04) wrong based on 384 sessions

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If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa? (1) The selling price of the sofa was greater than 140 percent of the purchase price. (2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price. DS71521.01 OG2020 NEW QUESTION _________________ Math Expert Joined: 02 Aug 2009 Posts: 8200 Re: If a merchant purchased a sofa from a manufacturer for$400 and then s  [#permalink]

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26 Apr 2019, 04:15
If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa? The cost price and selling price are interconnected through profit or loss. Here, cost price = c=400. (1) The selling price of the sofa was greater than 140 percent of the purchase price. The selling price is given as a range, so insuff....s>1.4*c...s>1.4*400....x>560 Insuff (2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price. If s is the selling price, profit =$$\frac{s}{3}$$. Thus c+$$\frac{s}{3}$$=s, or c=400=$$\frac{2s}{3}$$, that is s=600. Suff B _________________ examPAL Representative Joined: 07 Dec 2017 Posts: 1155 Re: If a merchant purchased a sofa from a manufacturer for$400 and then s  [#permalink]

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27 Apr 2019, 14:23
1
The Logical approach to this question will focus on finding the profit/lost, which will get us from the cost to the selling price.
Statement (1) uses the term 'greater than' which gives us range, and thus doesn't lead to one definite answer to the question we're asked. (A) and (D) are eliminated.
Statement (2) provides the ratio between the profit and the selling price, which is sufficient: if the profit is a third of the selling price then the cost is the other two thirds. Since we have a ratio and a number (the cost), we have all we need. The correct answer is (B).

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Re: If a merchant purchased a sofa from a manufacturer for $400 and then s [#permalink] ### Show Tags 29 Apr 2019, 04:55 1 1 Bunuel wrote: If a merchant purchased a sofa from a manufacturer for$400 and then sold it, what was the selling price of the sofa?

(1) The selling price of the sofa was greater than 140 percent of the purchase price.
(2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

DS71521.01
OG2020 NEW QUESTION

Hola amigos

Purchasing price - $$400$$
Selling price - $$x$$, so what is $$x$$?

1. $$x$$ was greater than $$140$$ % of $$400$$.
Greater than $$140$$ % means that $$x$$ can be $$600, 700$$, ... or whatever.
Insufficient

2. The merchant's gross profit from the purchase and sale of the sofa was $$1/3 * x$$.
Gross profit = $$x - 400$$ or $$1/3 * x = x - 400$$. So $$x = 600$$
Sufficient

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Re: If a merchant purchased a sofa from a manufacturer for $400 and then s [#permalink] ### Show Tags 29 Apr 2019, 11:22 Top Contributor Bunuel wrote: If a merchant purchased a sofa from a manufacturer for$400 and then sold it, what was the selling price of the sofa?

(1) The selling price of the sofa was greater than 140 percent of the purchase price.
(2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

Given: A merchant purchased a sofa from a manufacturer for $400 and then sold it Target question: What was the selling price of the sofa? Statement 1: The selling price of the sofa was greater than 140 percent of the purchase price. Let x = selling price of the sofa We can write: x >$400 + (140% of $400) Simplify: x >$400 + $560 Simplify: x >$960
If the selling price is greater than $960, then the selling price COULD be$970, $980,$985, . . . etc
Since we cannot answer the target question with certainty, statement 1 is NOT SUFFICIENT

Statement 2: The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.
Let x = selling price of the sofa
So, the gross profit = x/3

NOTE: Gross profit = selling price - purchase price
For this question, we have: Gross profit = selling price - $400 Replace values to get: x/3 = x - 400 Multiply both sides by 3 to get: x = 3x - 1200 So: -2x = -1200 Solve: x = 600 So, the selling price was$600
Since we can answer the target question with certainty, statement 2 is SUFFICIENT

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Re: If a merchant purchased a sofa from a manufacturer for $400 and then s [#permalink] ### Show Tags 14 May 2019, 23:55 Solution Steps 1 & 2: Understand Question and Draw Inferences In this question, we are given • A merchant purchased a sofa from a manufacturer for$400 and then sold it.

We need to determine
• The selling price of the sofa.

As we have no other relevant information present in the question stem, let us now analyse the individual statements.

Step 3: Analyse Statement 1
As per the information given in statement 1, the selling price of the sofa was greater than 140 percent of the purchase price.
• However, to determine the exact selling price, we need to know by what exact percentage the selling price is greater than purchase price.

Since we don’t know the exact percentage value, statement 1 is not sufficient to answer the question.

Step 4: Analyse Statement 2
As per the information given in statement 2, the merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.
• Profit = selling price – purchase price
Or, 1/3 * selling price = selling price – purchase price
Or, 2/3 * selling price = purchase price = 400
Or, selling price = 400 * 3/2 = 600

Hence, statement 2 is sufficient to answer the question.

Step 5: Combine Both Statements Together (If Needed)
Since we can determine the answer from statement 2 individually, this step is not required.
Hence, the correct answer choice is option B.

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Re: If a merchant purchased a sofa from a manufacturer for $400 and then s [#permalink] ### Show Tags 15 May 2019, 20:22 Hi All, We're told that a merchant purchased a sofa from a manufacturer for$400 and then sold it. We're asked for the selling price of the sofa. This question is based around a mix of basic Arithmetic and Algebra.

(1) The selling price of the sofa was greater than 140 percent of the purchase price.

Fact 1 tells us that the selling price was GREATER than 140% of $400, so there's clearly a limitless number of possibilities. There's no way to determine the exact selling price, although we know that it would be MORE than (1.4)($400) = $560. Fact 1 is INSUFFICIENT (2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price. Based on the information in Fact 2, we can create the following equation: Profit = (Selling Price) - (Cost) (1/3)(P) = (P) - 400 This is one variable and one equation, so you CAN solve for P (and there will be just one answer. If you did the extra steps, you would come up with the following: P = 3P - 1200 1200 = 2P 600 = P Fact 2 is SUFFICIENT Final Answer: GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at: Rich.C@empowergmat.com The Course Used By GMAT Club Moderators To Earn 750+ souvik101990 Score: 760 Q50 V42 ★★★★★ ENGRTOMBA2018 Score: 750 Q49 V44 ★★★★★ Manager Joined: 17 Jul 2017 Posts: 201 Re: If a merchant purchased a sofa from a manufacturer for$400 and then s  [#permalink]

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14 Oct 2019, 07:23
Bunuel wrote:
If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa? (1) The selling price of the sofa was greater than 140 percent of the purchase price. (2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price. DS71521.01 OG2020 NEW QUESTION Bunuel chetan2u had the language been : The selling price of the sofa was 140 percent greater than the purchase price. then it would have been sp=cp+1.4cp right? Re: If a merchant purchased a sofa from a manufacturer for$400 and then s   [#permalink] 14 Oct 2019, 07:23
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