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On the first day of last month, a magazine seller had in stock 300 cop

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On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 21 Oct 2018, 23:26
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On the first day of last month, a magazine seller had in stock 300 copies of Magazine X, costing $4 each. During the month, the seller purchased more copies of Magazine X. What was the total amount of inventory, in dollars, of Magazine X at the end of the month?

(1) The seller purchased 100 copies of Magazine X for $3.75 each during the month.
(2) The total revenue from the sale of Magazine X was $800 during the month.

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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 08:33
Bunuel wrote:
On the first day of last month, a magazine seller had in stock 300 copies of Magazine X, costing $4 each. During the month, the seller purchased more copies of Magazine X. What was the total amount of inventory, in dollars, of Magazine X at the end of the month?

(1) The seller purchased 100 copies of Magazine X for $3.75 each during the month.
(2) The total revenue from the sale of Magazine X was $800 during the month.


Stat1) states seller bought additional 100 x 3.75$ worth inventory during the month , but we do not know what happened with the month ie how much did he sell so as to calculate the amount of inventory at the end of the month, hence insuff

stat2) given amount of inventory sold but does not specifies how much was bought in hence, insuff

both , we know how much additional was bought and how much was sold hence we can find the total inventory ; it would be 300 x 4 + 100 x 3.75 - 800 = 775$

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On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 12:56
doomedcat wrote:
Bunuel wrote:
On the first day of last month, a magazine seller had in stock 300 copies of Magazine X, costing $4 each. During the month, the seller purchased more copies of Magazine X. What was the total amount of inventory, in dollars, of Magazine X at the end of the month?

(1) The seller purchased 100 copies of Magazine X for $3.75 each during the month.
(2) The total revenue from the sale of Magazine X was $800 during the month.


Stat1) states seller bought additional 100 x 3.75$ worth inventory during the month , but we do not know what happened with the month ie how much did he sell so as to calculate the amount of inventory at the end of the month, hence insuff

stat2) given amount of inventory sold but does not specifies how much was bought in hence, insuff

both , we know how much additional was bought and how much was sold hence we can find the total inventory ; it would be 300 x 4 + 100 x 3.75 - 800 = 775$

C


I suppose we are looking for the amount of inventory calculated in terms of the cost of magazines.

Formula should be: Initial inventory cost + cost of additional purchases - cost of sold magazines

We don't have the cost of sold magazines. How can we obtain the cost amount of inventory sold if (2) gives you only the revenues? We would need at least revenues quantity. Moreover we don't know if the seller sold the 4$ magazines or the 3.75$ ones.
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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 16:19
Manfo wrote:
doomedcat wrote:
Bunuel wrote:
On the first day of last month, a magazine seller had in stock 300 copies of Magazine X, costing $4 each. During the month, the seller purchased more copies of Magazine X. What was the total amount of inventory, in dollars, of Magazine X at the end of the month?

(1) The seller purchased 100 copies of Magazine X for $3.75 each during the month.
(2) The total revenue from the sale of Magazine X was $800 during the month.


Stat1) states seller bought additional 100 x 3.75$ worth inventory during the month , but we do not know what happened with the month ie how much did he sell so as to calculate the amount of inventory at the end of the month, hence insuff

stat2) given amount of inventory sold but does not specifies how much was bought in hence, insuff

both , we know how much additional was bought and how much was sold hence we can find the total inventory ; it would be 300 x 4 + 100 x 3.75 - 800 = 775$

C


I suppose we are looking for the amount of inventory calculated in terms of the cost of magazines.

Formula should be: Initial inventory cost + cost of additional purchases - cost of sold magazines

We don't have the cost of sold magazines. How can we obtain the cost amount of inventory sold if (2) gives you only the revenues? We would need at least revenues quantity. Moreover we don't know if the seller sold the 4$ magazines or the 3.75$ ones.




I agree with that. For me answer is E
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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 19:18
Manfo wrote:
doomedcat wrote:
Bunuel wrote:
On the first day of last month, a magazine seller had in stock 300 copies of Magazine X, costing $4 each. During the month, the seller purchased more copies of Magazine X. What was the total amount of inventory, in dollars, of Magazine X at the end of the month?

(1) The seller purchased 100 copies of Magazine X for $3.75 each during the month.
(2) The total revenue from the sale of Magazine X was $800 during the month.


Stat1) states seller bought additional 100 x 3.75$ worth inventory during the month , but we do not know what happened with the month ie how much did he sell so as to calculate the amount of inventory at the end of the month, hence insuff

stat2) given amount of inventory sold but does not specifies how much was bought in hence, insuff

both , we know how much additional was bought and how much was sold hence we can find the total inventory ; it would be 300 x 4 + 100 x 3.75 - 800 = 775$

C


I suppose we are looking for the amount of inventory calculated in terms of the cost of magazines.

Formula should be: Initial inventory cost + cost of additional purchases - cost of sold magazines

We don't have the cost of sold magazines. How can we obtain the cost amount of inventory sold if (2) gives you only the revenues? We would need at least revenues quantity. Moreover we don't know if the seller sold the 4$ magazines or the 3.75$ ones.


No, My friend i suppose you miss the point where it is given in stat 2 that revenue from the sale of Magazine X was $800, There is no need to know about cost of sold magazines, all we need to know is that the sale cost $800 (irrespective of $4 or $3.75 cost price) from the existing total $ inventory.
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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 21:25
Given,

at the beginning: 300 copies for $4 each so stock worth $1200

Fact 1- The seller purchased 100 copies of Magazine X for $3.75 each during the month. So, stock worth $375. Total stock $1200+$375= $1575

But we do not know about the stock sold. So, insufficient.

Fact 2- The total revenue from the sale of Magazine X was $800 during the month. But no information about additional stock purchased. So, insufficient.

On combining: Total stock worth $1575 - Revenue from stock sold $800 = Total amount of inventory left at the end $775

So combined it is sufficient. Answer: C
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On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 21:59
how does knowing the revenue help you assess the value of the remaining stock?

let us say you have 100 copies, priced at 4 dollars each.
Lets say you sold 1 copy, for 100 dollars (for some reason )
or 2 copies for 100 dollars, 50 each
your stock has 99 copies or 98 copies left, the value of stock is 99x4 or 98x4
shouldnt the ans be e?

https://gmatclub.com/forum/at-the-begin ... fl=similar --- similar question with answer E
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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 22:55
doomedcat wrote:
Manfo wrote:
doomedcat wrote:

C


I suppose we are looking for the amount of inventory calculated in terms of the cost of magazines.

Formula should be: Initial inventory cost + cost of additional purchases - cost of sold magazines

We don't have the cost of sold magazines. How can we obtain the cost amount of inventory sold if (2) gives you only the revenues? We would need at least revenues quantity. Moreover we don't know if the seller sold the 4$ magazines or the 3.75$ ones.


No, My friend i suppose you miss the point where it is given in stat 2 that revenue from the sale of Magazine X was $800, There is no need to know about cost of sold magazines, all we need to know is that the sale cost $800 (irrespective of $4 or $3.75 cost price) from the existing total $ inventory.


I think your reasoning is flawed since you’re evaluating stock in terms of cost and sold magazines in terms of revenues. This is not coherent.

Profit = revenues - costs

If we are given only the revenues we can’t find the cost of sold magazines. And obviously we can’t subtract the revenues of sold magazines from the total amount of inventory cost in order to obtain the cost of inventory (as said before is not coherent). You have to apply the same approach to evaluate both in order to subtract one from another.

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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 22 Oct 2018, 23:17
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Bunuel wrote:
On the first day of last month, a magazine seller had in stock 300 copies of Magazine X, costing $4 each. During the month, the seller purchased more copies of Magazine X. What was the total amount of inventory, in dollars, of Magazine X at the end of the month?

(1) The seller purchased 100 copies of Magazine X for $3.75 each during the month.
(2) The total revenue from the sale of Magazine X was $800 during the month.



rahulkashyap...

The equation 4*300+100*3.75-800 is clearly flawed..
Because the answer depends on how many are sold in this 800..

A slight ambiguous word is 'costing' - is it the selling price or the cost at which the magazine was purchased..

I would say the question means ..
The selling price is 4 and cost price is 3.75...
So when we combine both sentences ...
Total amount of inventory @ selling price is 4*(300+100)=1600
Amount sold - 800

Inventory left 1600-800=800

But otherwise, the answer should be E in present state..
Combined we do not know the cost price of earlier 300 or the number of magazines sold in 800$
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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 23 Oct 2018, 00:09
Can somebody please explain why E is not the correct answer?

As per my understanding, E should be correct.

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Re: On the first day of last month, a magazine seller had in stock 300 cop  [#permalink]

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New post 23 Oct 2018, 00:25
dollytaneja51 wrote:
Can somebody please explain why E is not the correct answer?

As per my understanding, E should be correct.

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From statement 1 we can get the amount by the total value of inventory increased and from stat 2 we get the total value by which the inventory decreased.
So, we can add the difference of the two quantities from the two statements and add it to the initial inventory value to get final one.
So, C is the correct choice.
Hope it answers your question.

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Re: On the first day of last month, a magazine seller had in stock 300 cop &nbs [#permalink] 23 Oct 2018, 00:25
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