A clothing store acquired an item at a cost of x dollars and

Question

A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The store's gross profit from the item was what percent of its cost for the item?

(1) y - x = 20
(2) y/x = 5/4

Practice Questions 
Question: 51
Page: 279
Difficulty: 600

Bunuel · Accepted Answer

SOLUTION

A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The store's gross profit from the item was what percent of its cost for the item?

We need to find the value of  \frac{y-x}{x}*100=(\frac{y}{x}-\frac{x}{x})*100=(\frac{y}{x}-1)*100 . So, basically we need to find the value of  \frac{y}{x} .

(1) y - x = 20. We cannot get the desired ratio from this statement. Not sufficient.
(2) y/x = 5/4. Directly gives us the value of  \frac{y}{x} . Sufficient.

Answer: B.

Carcass · Answer

tricky one. I picked D but is wrong. Answer should be B

here:  P = Revenues - Costs . for instance I have  R = 30   C = 10  so  y - x = 20 . In my example I know x and y but from 1) we do not have them sio INSUFF

2)  y = 5   x = 4 ----->  R = 5  and  C = 4  so  C = 100  and R = 125 . We have 25 % that is what we are looking for SUFF

B shoould be the answer

EvaJager · Answer

The gross profit is  y-x.  The question asks for the ratio  \frac{y-x}{x}.

(1) No information about  x. 
Not sufficient.

(2) Since  \frac{y-x}{x}=\frac{y}{x}-\frac{x}{x}=\frac{y}{x}-1 , sufficient.

Answer B.

Bunuel · Answer

SOLUTION

A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The store's gross profit from the item was what percent of its cost for the item?

We need to find the value of  \frac{y-x}{x}*100=(\frac{y}{x}-\frac{x}{x})*100=(\frac{y}{x}-1)*100 . So, basically we need to find the value of  \frac{y}{x} .

(1) y - x = 20. We cannot get the desired ratio from this statement. Not sufficient.
(2) y/x = 5/4. Directly gives us the value of  \frac{y}{x} . Sufficient.

Answer: B.

Kudos points given to everyone with correct   solution  . Let me know if I missed someone.

Carcass · Answer

Bunuel Your method to rephrase a stem is simply unbelievable. Of course the most important thing during the exam is to have the right solution under time constrain, no matter what......but wow

JeffTargetTestPrep · Answer

We are given that a clothing store acquired an item at a cost of x dollars and sold the item for y dollars. We must determine:
 
(profit/cost) * 100 = ?
 
We are given x as the cost and y as the revenue. Thus, profit = revenue – cost = y – x, and thus we can substitute y – x for profit and x for cost. Thus, our new question is:
 
(y – x)/x * 100 = ?
 
Statement One Alone:
 
y – x = 20
 
Since y – x = 20, we can substitute 20 for y - x into the expression (y – x)/x * 100.
 
The new question is: 20/x * 100 = ?
 
Since we do not know the value of x, statement one alone is not sufficient. 
 
Statement Two Alone:
 
y/x = 5/4
 
When we cross multiply y/x = 5/4 we obtain:
 
4y = 5x
 
(4/5)y = x
 
0.8y = x
 
Since 0.8y = x, we can substitute 0.8y for x in the expression (y – x)/x * 100.
 
(y – 0.8y)/(0.8y) * 100 = ?
 
(0.2y)/(0.8y) * 100 = ?
 
(0.2/0.8) * 100 = ?
 
(1/4) * 100 = 25%
 
Statement two is sufficient.
 
Answer: B

QuantMadeEasy · Answer

Profit percent = (profit / CP )*100% = (y-x)/x *100% = (y/x -1 )*100%

(1) Insufficient
(2) Sufficient

B is correct.

MartyMurray · Answer

A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The store's gross profit from the item was what percent of its cost for the item?

By clearly seeing the logic of what's going on in this question, we can answer it in under a minute without doing any formal math or writing anything.

The key aspect of the scenario to understand is that the percentage of the cost represented by the gross profit is basically a ratio of gross profit to cost. So, to answer the question, we need either some kind of information in ratio form that indicates what the ratio of gross profit to cost is or exact numbers that we can use to calculate the ratio between gross profit and cost.

(1) y - x = 20

This statement does not indicate what any kind of ratio involved in the scenario is.

Also, the single value provided of does not enable calculation of any ratio since, to calculate a ratio, we need two sides.

Insufficient.

(2) y/x = 5/4

This statement is interesting.

While it doesn't directly provide the ratio of gross profit to cost, by providing the ratio of price to cost, it provides information sufficient for determining the ratio of gross profit to cost.

After all, the ratio of gross profit to cost must be mathematically locked in by the ratio of price to cost since gross profit = price - cost. In other words, if we how the relative sizes of the price and the cost, we can use that information to determine the relative sizes of price - cost and cost, which we could then use to determine what percent of the cost is gross profit.

Sufficient.

Correct answer:   B

A clothing store acquired an item at a cost of x dollars and

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