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Joined: 01 Nov 2016
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Concentration: Technology, Operations

Re: M0332
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08 May 2017, 12:47
sc6h wrote: I am doing mathematical approach.
1. 1.1x + 0.9y = 1.05(x+y) 2. 0.05(x+y) = 1,000
if you solve the two equations above, you will get x=15,000 y=5,000 For your step 1 you can simplify to: 1.1x + 0.9y = 1.05x + 1.05y .05x = .15y x = 3y Then if you look at the answers, the only possible answer that matches x = 3y is $15k and $5k



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Re: M0332
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26 May 2017, 23:07
BunuelOther GMAT material also states that Profit/Loss is calculated on Cost Price. This is the way GMAT is tested. But I agree with the others above that this is not correct and completely contradicts what we are taught in Business School, that Profit Margin is ALWAYS calculated on Selling Price.



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Re: M0332
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31 May 2017, 10:57
Hi Bunnel,
I don't know if I got lucky but I did this. Let the cost of first car be x and second be y. The profit from first car be 0.1x and loss from second be 0.1y. now it is obvious that the profit of first car is higher than the loss of second car as we are getting a profit of 1000. Now we know the total profit will be 0.1x0.1y=1000 =>xy=10000 and there is only one answer which gives xy as 10000 that is D.
Regards, Arpan



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Re: M0332
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23 Aug 2017, 03:29
1) a,b  prices of cars: 10% of a  10% of b = 1,000 a) 500100 nope b) 900500 nope c) 1100900 nope d) 1500500 =1000 e) 20001000 = 1000 . So we have d and e left. 2) 0,05 (a+b) = 1000: d) 0,05 (20k) = 1k OK e) 0,05 (30k) = 1.5 Nope. hence d.



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I still find this question confusing and poorly written. "cost price" is not an understood term. There's cost and there's price. Profit % in the real world is profit $ margin as a percentage of price, not as a percentage of cost. Hence profit can never exceed 100%. What am I missing?



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Re: M0332
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08 Oct 2017, 13:00
Hi, I am just curious about a solution path.
If we were to backsolve using choice E:
1.10(20,000)= 22,000
Profit: 2k
.9(10,000)=9,000
Loss: 1k
2k1k= 1k net profit
Am I missing something?



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Re: M0332
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08 Oct 2017, 21:16
georgetags10 wrote: Hi, I am just curious about a solution path.
If we were to backsolve using choice E:
1.10(20,000)= 22,000
Profit: 2k
.9(10,000)=9,000
Loss: 1k
2k1k= 1k net profit
Am I missing something? This is not complete. The profit of $1,000 is not 5% of the total cost, which in case of E is $30,000.
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Joined: 27 Dec 2016
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I approached it a bit differently by exploiting the answer choices. C1= 10% Profit C2= 10% loss. Overall 5% Profit = $1000. Cost of Each Car = ?
What we need to do is check whether the sum of C1 Profit and C2 Loss is equal to $1000. Start with Choice C C1= 11000 > 10% Profit = 1100 C2+ 9000 > 10% Loss = 900 Total is not equal to 1000 and we require a bigger C1 number
Exploit Choice D  C1= 15000 > 10% Profit = 1500 C2 = 5000 > 10% Loss = 500 Total is equal to 1000 and its the 5% of total cost. Hence the correct choice.



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Re M0332
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26 Dec 2017, 06:47
I think this is a highquality question and I agree with explanation.



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Re: M0332
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24 Mar 2018, 00:53
I tried to click on the feedback button but it didn't work. Anyway, here is my feedback.
I believe that there is either not very clear explanation or the answer is incorrect. You must be clear what is meany by the cost price of each car. Either Final sales price or original Purchase price. Anyway, We get the 20000 = X*1.1 + Y*0.9 X and Y the purchase prices of cars. We calculate the profit relative to the purchase price of the car meaning that X*1.1 will be the sales price of the first car, and we sold the second for a 10% loss, meaning that we sold it under the purchase price: Y*0.9
X*1.1 + Y*0.9 = 20000 X+Y=19000 From here x=14500 and y=4500 (purch. prices) X*1.1 = 15950 (sales price of car X) Y*0.9 = 4050 (sales price of car Y)
The percent difference should be understood like this: ((Sales Price)  (Purchase price))/(purch. price) (Y4500)/4500 = 0.1 > From here > Y4500=450 Y=4050 The same for X.
Maybe I didn't understand the task. But anyway you should be more clear on the terminology, COST in most cases refer to the expenses (e.g. "Cost of goods sold" in accounting).



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Re: M0332
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16 Aug 2018, 10:56
DJ1986 wrote: With the Allegation method this question takes 2 seconds.
+10____5____10
The distance from average is 5:15. Do you have any videos or tutorials explaining allegation method?







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