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Maria runs a business of buying and selling of ready-made Tuxedos

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Maria runs a business of buying and selling of ready-made Tuxedos  [#permalink]

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New post 12 Mar 2018, 03:59
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A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

77% (01:16) correct 23% (01:22) wrong based on 68 sessions

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Maria runs a business of buying and selling of ready-made Tuxedos in her shop. A particular Tuxedo costs her $X. Its a special '25% discount' promotion going on in her shop, so she will have to sell this Tuxedo also at a 25% discount below the label price. At what price should she label this Tuxedo in her shop?

(1) X = 500

(2) She has to earn 20% profit on this Tuxedo.
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Re: Maria runs a business of buying and selling of ready-made Tuxedos  [#permalink]

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New post 12 Mar 2018, 05:22
We dont know the cost of the tuxedo in the second statement

Suppose , Tux is selling for $100 . 25 % discount would mean it costs 75.

The question also states that she needs to make a 20% profit on it. Since we dont know the cost, I dont think we can set the price

Answer should be A
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Re: Maria runs a business of buying and selling of ready-made Tuxedos  [#permalink]

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New post 13 Mar 2018, 11:09
amanvermagmat wrote:
Maria runs a business of buying and selling of ready-made Tuxedos in her shop. A particular Tuxedo costs her $X. Its a special '25% discount' promotion going on in her shop, so she will have to sell this Tuxedo also at a 25% discount below the label price. At what price should she label this Tuxedo in her shop?

(1) X = 500

(2) She has to earn 20% profit on this Tuxedo.


We need to find the marked price or the label price of the Tuxedo.

Statement 1:
So the cost price = $500, but we dont know anything about selling price so we cannot use the 25% discount figure to calculate marked price. Not sufficient.

Statement 2:
20% profit over Cost price will give us the selling price and then we can use the 25% discount figure to calculate marked price. But we dont know the cost price, so we cannot calculate selling price or marked price. Not Sufficient.

Combining the statements:
Cost price = $500, with a profit of 20% the Selling price required = 1.2*500 = $600
But this $600 will be received by Maria after 25% discount over Marked price. This means

Selling price = 25% less than Marked Price or 75% of Marked Price
Since we know the Selling price, we can now calculate the marked price. Sufficient.

Hence C answer
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Re: Maria runs a business of buying and selling of ready-made Tuxedos &nbs [#permalink] 13 Mar 2018, 11:09
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Maria runs a business of buying and selling of ready-made Tuxedos

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