If a merchant purchased a sofa from a manufacturer for $400 and then s

Question

If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa?

(1) The selling price of the sofa was greater than 140 percent of the purchase price.
(2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

DS71521.01
OG2020 NEW QUESTION

chetan2u · Answer

If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa?
 The cost price and selling price are interconnected through profit or loss. Here, cost price = c=400.

(1) The selling price of the sofa was greater than 140 percent of the purchase price.
The selling price is given as a range, so insuff....s>1.4*c...s>1.4*400....x>560
Insuff

(2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.
If s is the selling price, profit = \frac{s}{3} .
Thus c+ \frac{s}{3} =s, or c=400= \frac{2s}{3} , that is s=600.
Suff

B

DavidTutorexamPAL · Answer

The Logical approach to this question will focus on finding the profit/lost, which will get us from the cost to the selling price. 
Statement (1) uses the term 'greater than' which gives us range, and thus doesn't lead to one definite answer to the question we're asked. (A) and (D) are eliminated. 
Statement (2) provides the ratio between the profit and the selling price, which is sufficient: if the profit is a third of the selling price then the cost is the other two thirds. Since we have a ratio and a number (the cost), we have all we need. The correct answer is (B).

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ShukhratJon · Answer

Hola amigos

Purchasing price - 400 Selling price - x , so what is x ? 1. x was greater than 140 % of 400 . Greater than 140 % means that x can be 600, 700 , ... or whatever. Insufficient 2. The merchant's gross profit from the purchase and sale of the sofa was 1/3 * x . Gross profit = x - 400 or 1/3 * x = x - 400 . So x = 600 Sufficient The answer is B

BrentGMATPrepNow · Answer

Given : A merchant purchased a sofa from a manufacturer for $400 and then sold it

Target question :    What was the selling price of the sofa?

Statement 1 : The selling price of the sofa was greater than 140 percent of the purchase price.  
Let x = selling price of the sofa
We can write: x > 140% of $400
Simplify: x > $560
If the selling price is greater than $560, then  the selling price COULD be $970, $980, $985, . . . etc 
Since we cannot answer the  target question  with certainty, statement 1 is NOT SUFFICIENT

Statement 2 : The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price. 
Let x = selling price of the sofa
So, the gross profit = x/3

NOTE: Gross profit = selling price - purchase price 
For this question, we have: Gross profit = selling price - $400
Replace values to get: x/3 = x - 400
Multiply both sides by 3 to get: x = 3x - 1200
So: -2x = -1200
Solve: x = 600
So,  the selling price was $600 
Since we can answer the  target question  with certainty, statement 2 is SUFFICIENT

Answer: B

Cheers,
Brent

EgmatQuantExpert · Answer

Solution

Steps 1 & 2: Understand Question and Draw Inferences  
In this question, we are given
 • A merchant purchased a sofa from a manufacturer for $400 and then sold it.

We need to determine
 • The selling price of the sofa.

As we have no other relevant information present in the question stem, let us now analyse the individual statements.

Step 3: Analyse Statement 1  
As per the information given in statement 1, the selling price of the sofa was greater than 140 percent of the purchase price.
 • However, to determine the exact selling price, we need to know by what exact percentage the selling price is greater than purchase price.

Since we don’t know the exact percentage value, statement 1 is not sufficient to answer the question.

Step 4: Analyse Statement 2  
As per the information given in statement 2, the merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.
 • Profit = selling price – purchase price
Or, 1/3 * selling price = selling price – purchase price
Or, 2/3 * selling price = purchase price = 400
Or, selling price = 400 * 3/2 = 600

Hence, statement 2 is sufficient to answer the question.

Step 5: Combine Both Statements Together (If Needed)  
Since we can determine the answer from statement 2 individually, this step is not required.
Hence, the correct answer choice is option B.

https://e-gmat.com/blogs/wp-content/uploads/2018/08/Ability-Quiz-WP-e1533292133520.png

EMPOWERgmatRichC · Answer

Hi All,

We're told that a merchant purchased a sofa from a manufacturer for $400 and then sold it. We're asked for the selling price of the sofa. This question is based around a mix of basic Arithmetic and Algebra.

(1) The selling price of the sofa was greater than 140 percent of the purchase price.

Fact 1 tells us that the selling price was GREATER than 140% of $400, so there's clearly a limitless number of possibilities. There's no way to determine the exact selling price, although we know that it would be MORE than (1.4)($400) = $560. 
Fact 1 is INSUFFICIENT

(2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

Based on the information in Fact 2, we can create the following equation: 
Profit = (Selling Price) - (Cost) 
(1/3)(P) = (P) - 400

This is one variable and one equation, so you CAN solve for P (and there will be just one answer. If you did the extra steps, you would come up with the following:

P = 3P - 1200 
1200 = 2P 
600 = P 
Fact 2 is SUFFICIENT

Final Answer:  B

GMAT assassins aren't born, they're made, 
Rich

ScottTargetTestPrep · Answer

Solution:
 
 Question Stem Analysis:
 
We need to determine the selling price of the sofa, given that the purchase price of the sofa from the manufacturer was $400.

Statement One Alone:

With statement one, we see that the selling price of the sofa was greater than 400 x 1.4 = $560. However, since we can’t determine the exact selling price of the sofa, statement one alone is not sufficient.

Statement Two Alone:

If we let s be the selling price of the sofa, we can create the equation:

s - 400 = s/3

2s/3 = 400

s = 400 x 3/2 = 600

We see that the selling price of the sofa was $600. Statement two alone is sufficient.

Answer: B

GMATinsight · Answer

Answer: Option B

Video solution by  GMATinsight

https://www.youtube.com/watch?v=RGeFq6snQhM

avigutman · Answer

Video solution from Quant Reasoning: Subscribe for more: https://www.youtube.com/QuantReasoning? ... irmation=1 https://www.youtube.com/watch?v=j3ODgteCQqw

Rainman91 · Answer

Trying to get to the bottom of why so many people have answered D.

In (1)

IF it were written, The selling price of the sofa was  140 percent greater  than the purchase price.

Then we could land on a single defined value (560)? Am I right?

EMPOWERgmatRichC · Answer

Hi Rainman91, Yes - the placement of the phrase "greater than" is really important to the overall meaning of the information in Fact 1. Based on the original wording, we have a limitless number of possibilities (since we're dealing with ANY values that are greater than 140% of the purchase price). However, IF the wording was changed to tell us "the selling price of the sofa was 140% greater than the purchase price" - then combined with the additional information that we were given (re: the purchase price was $400) - then that would be Sufficient (as there's only one value that fits this wording). GMAT assassins aren't born, they're made, Rich Contact Rich at: Rich.C@empowergmat.com

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