Last visit was: 14 Jul 2024, 22:16 It is currently 14 Jul 2024, 22:16
Toolkit
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Martha bought an armchair and a coffee table at an action and sold bot

SORT BY:
Tags:
Show Tags
Hide Tags
Senior Manager
Joined: 23 Apr 2010
Posts: 476
Own Kudos [?]: 359 [111]
Given Kudos: 7
Math Expert
Joined: 02 Sep 2009
Posts: 94342
Own Kudos [?]: 640863 [112]
Given Kudos: 85011
Tutor
Joined: 16 Oct 2010
Posts: 15108
Own Kudos [?]: 66634 [16]
Given Kudos: 436
Location: Pune, India
General Discussion
Senior Manager
Joined: 23 Apr 2010
Posts: 476
Own Kudos [?]: 359 [4]
Given Kudos: 7
Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
3
Kudos
1
Bookmarks
Is there a quick way to know whether a fraction will cancel the variables, and only an absolute value will remain?

As v1rok has said, had numbers been a little bit different, the answer would have been (C).
Manager
Joined: 13 Jun 2011
Status:Do till 740 :)
Posts: 61
Own Kudos [?]: 31 [1]
Given Kudos: 19
Concentration: Strategy, General Management
GMAT 1: 460 Q35 V20
GPA: 3.6
WE:Consulting (Computer Software)
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
1
Kudos
Also Bunuel,

C would be true even if the percentages are different but if it were product

i .e instead of profit calculation ,if it were a revenue calculation, C would be the answer?

Am i right?
Math Expert
Joined: 02 Sep 2009
Posts: 94342
Own Kudos [?]: 640863 [0]
Given Kudos: 85011
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
shankar245 wrote:
Also Bunuel,

C would be true even if the percentages are different but if it were product

i .e instead of profit calculation ,if it were a revenue calculation, C would be the answer?

Am i right?

I'm not sure understand your point. The question asks about the ratio of the profits, not the value of any profit. If it were asking about the ratio of the revenues then the answer would be B, since (2) directly says that revenue from the armchair was 20% more than the revenue from the coffee table.
Math Expert
Joined: 02 Sep 2009
Posts: 94342
Own Kudos [?]: 640863 [3]
Given Kudos: 85011
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
3
Bookmarks
Bumping for review and further discussion*. Get a kudos point for an alternative solution!

*New project from GMAT Club!!! Check HERE

Theory on Percent and Interest Problems: math-number-theory-percents-91708.html

All DS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=33
All PS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=54
Intern
Joined: 24 Jul 2013
Posts: 5
Own Kudos [?]: 3 [3]
Given Kudos: 5
Concentration: Strategy, Entrepreneurship
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
3
Kudos
hersheycake wrote:
Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table.

(2) Martha sold the armchair for 20% more than she sold the coffee table.

Question asks for $$\frac{S_a-C_a}{S_c-C_c}$$

(1) Pick number $$C_c=100$$ then $$C_a=110$$ we don't have information for $$S_c$$ and $$S_a$$ so insufficient

(2) Pick number $$S_c=200$$ then $$S_a=240$$ we don't have information for $$C_c$$ and $$C_a$$ so insufficient

(1)+(2) Although it seems like we can solve the questions using the numbers we picked above for (1) and (2), we need to try to pick a new set of numbers to make the statements insufficient.
For example, pick number $$S_c=300$$ then $$S_a=360$$. The numerator and denominator change non-proportionally, therefore will result in a different ratio.

Manager
Joined: 25 Nov 2014
Posts: 93
Own Kudos [?]: 58 [0]
Given Kudos: 30
Concentration: Entrepreneurship, Technology
GMAT 1: 680 Q47 V38
GPA: 4
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
Let sale price / purchase price of armchair be As and Ap resp. Similarly for Coffee table be, Cs and Cp.
To find (As - Ap) * 100 / (Cs - Cp) ?
1) gives us that Ap = 1.1Cp
our eq becomes : (As - 1.1Cp) *100 / (Cs - Cp). NS.

2) gives us that As = 1.2 Cs
our eq becomes : (1.2Cs - Ap) *100 / (Cs - Cp). NS.

1 and 2 , give :
(1.2Cs - 1.1Cp) *100 / (Cs-Cp)
Since we cannot cancel anything, the statements are still not suff.
Thus E.
Tutor
Joined: 16 Oct 2010
Posts: 15108
Own Kudos [?]: 66634 [4]
Given Kudos: 436
Location: Pune, India
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
3
Kudos
1
Bookmarks
hersheycake wrote:
Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table.

(2) Martha sold the armchair for 20% more than she sold the coffee table.

Thanks!

You can also try two values to see that both statements together are not sufficient.
It is obvious that neither statement alone is sufficient. The only question is whether the two of them together are sufficient.

Say she paid $100 for table and$110 for chair (10% more). Say she sold table for $200 and chair for$240 (20% more).
Her gross profit from table is $100 while from chair is$130 - i.e. 30% more

Now just vary one set of numbers a bit:
Say she paid $100 for table and$110 for chair (10% more). Say she sold table for $300 and chair for$360 (20% more).
Her gross profit from table is $200 while from chair is$250 - i.e. 25% more

So we see that the percentage by which her gross profit on chair is more than that on table varies with 2 different set of values. So both statements together are not sufficient.

Intern
Joined: 07 Jul 2018
Posts: 33
Own Kudos [?]: 11 [0]
Given Kudos: 33
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
Bunuel wrote:
hersheycake wrote:
Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table.

(2) Martha sold the armchair for 20% more than she sold the coffee table.

Thanks!

Welcome to GMAT Club. Below is a solution to your question.

Let the selling price and cost price of an armchair be $$S_a$$ and $$C_a$$ respectively;
Let the selling price and cost price of a coffee table be $$S_c$$ and $$C_c$$ respectively.
Basically we need to get: $$\frac{S_a-C_a}{S_c-C_c}$$.

(1) Martha paid 10% more for armchair than for the coffee table --> $$C_a=1.1*C_c$$. Not sufficient to get the ratio.

(2) Martha sold the armchair for 20% more than she sold the coffee table --> $$S_a=1.2*S_c$$. Not sufficient to get the ratio.

(1)+(2) $$\frac{S_a-C_a}{S_c-C_c}=\frac{1.2*S_c-1.1*C_c}{S_c-C_c}$$, still not sufficient to get the ratio.

Notice though that if the percents in (1) and (2) were the same then the answer would be C, since we would be able to factor out the percent and then reduce by $$S_c-C_c$$. For example if (1) were Martha paid 20% more for armchair than for the coffee table, then we would have: $$\frac{S_a-C_a}{S_c-C_c}=\frac{1.2*S_c-1.2*C_c}{S_c-C_c}=\frac{1.2*(S_c-C_c)}{S_c-C_c}=1.2$$, which would mean that Martha's gross profit from the armchair was 20% greater than her gross profit from the coffee table. Or simply if both the cost price and selling price of the armchair were 20% greater than the cost price and selling price of the coffee table then the profit would also be 20% greater.

Hope it's clear.

Great answer, but i have a basic doubt.

Do we not need to calculate [(Sa-Ca) - (Sc-Cc)]/ (Sa-Ca) * 100? If we were to calculate what the exact percentage was.
I know that we only need (Sa- Ca)/(Sc-Cc) and if we get that, we can add it to 100%.
I just want to confirm whether i am thinking wrong or what.
When the questions are like "What % greater" Do we calculate the percentage change? like (X-Y)/X * 100?
Math Expert
Joined: 02 Sep 2009
Posts: 94342
Own Kudos [?]: 640863 [0]
Given Kudos: 85011
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
Akshit03 wrote:
Bunuel wrote:
hersheycake wrote:
Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table.

(2) Martha sold the armchair for 20% more than she sold the coffee table.

Thanks!

Welcome to GMAT Club. Below is a solution to your question.

Let the selling price and cost price of an armchair be $$S_a$$ and $$C_a$$ respectively;
Let the selling price and cost price of a coffee table be $$S_c$$ and $$C_c$$ respectively.
Basically we need to get: $$\frac{S_a-C_a}{S_c-C_c}$$.

(1) Martha paid 10% more for armchair than for the coffee table --> $$C_a=1.1*C_c$$. Not sufficient to get the ratio.

(2) Martha sold the armchair for 20% more than she sold the coffee table --> $$S_a=1.2*S_c$$. Not sufficient to get the ratio.

(1)+(2) $$\frac{S_a-C_a}{S_c-C_c}=\frac{1.2*S_c-1.1*C_c}{S_c-C_c}$$, still not sufficient to get the ratio.

Notice though that if the percents in (1) and (2) were the same then the answer would be C, since we would be able to factor out the percent and then reduce by $$S_c-C_c$$. For example if (1) were Martha paid 20% more for armchair than for the coffee table, then we would have: $$\frac{S_a-C_a}{S_c-C_c}=\frac{1.2*S_c-1.2*C_c}{S_c-C_c}=\frac{1.2*(S_c-C_c)}{S_c-C_c}=1.2$$, which would mean that Martha's gross profit from the armchair was 20% greater than her gross profit from the coffee table. Or simply if both the cost price and selling price of the armchair were 20% greater than the cost price and selling price of the coffee table then the profit would also be 20% greater.

Hope it's clear.

Great answer, but i have a basic doubt.

Do we not need to calculate [(Sa-Ca) - (Sc-Cc)]/ (Sa-Ca) * 100? If we were to calculate what the exact percentage was.
I know that we only need (Sa- Ca)/(Sc-Cc) and if we get that, we can add it to 100%.
I just want to confirm whether i am thinking wrong or what.
When the questions are like "What % greater" Do we calculate the percentage change? like (X-Y)/X * 100?

Question: What percent is 10 greater than 8?

The answer is: (10 - 8)/8*100 = 25%. If you don't multiply you'll get 0.25, which is numerical value of 25% but you cannot say that 10 is greater than 8 by 0.25.
Manager
Joined: 21 May 2017
Posts: 58
Own Kudos [?]: 106 [0]
Given Kudos: 66
Location: India
GMAT 1: 660 Q49 V31
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
Martha bought an armchair and a coffee table at an action and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percentage greater than her gross profit from the purchase and sale of the coffee table?

(1) Martha paid 10% more for armchair than for the coffee table. NS as we dont know the price of AC and CT

(2) Martha sold the armchair for 20% more than she sold the coffee table. NS

1+2

We dont have any idea about the prices so we cannot find the ans

E
Non-Human User
Joined: 09 Sep 2013
Posts: 33971
Own Kudos [?]: 851 [0]
Given Kudos: 0
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Martha bought an armchair and a coffee table at an action and sold bot [#permalink]
Moderator:
Math Expert
94342 posts