Last visit was: 04 Sep 2026, 08:10 It is currently 04 Sep 2026, 08:10
Home
Messages
Tests
Schools
Events
Close
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
Your Progress

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.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
guddo
User avatar
Joined: 25 May 2021
Last visit: 03 Sep 2026
Posts: 1,827
Own Kudos:
14,365
 [23]
Given Kudos: 32
Posts: 1,827
Kudos: 14,365
 [23]
A store purchased coats from a manufacturer at $40 each and then sold 24 Jan 2024, 02:41
2
Kudos
Add Kudos
21
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

35% (medium)

Question Stats:

76% (01:53) correct 24% (02:02) wrong based on 684 sessions

History

Date
Time
Result
Not Attempted Yet
A store purchased coats from a manufacturer at $40 each and then sold all of the coats. The store's gross profit on the sale of the coats was what percent of the store's revenue from the sale of the coats?

(1) The store sold 20 percent of the coats at $80 each and the rest of the coats at $60 each.
(2) The store's total revenue from the sale of the coats was $6,400.


Show Spoiler
Attachment:
2024-01-24_13-40-30.png
2024-01-24_13-40-30.png [ 54.43 KiB | Viewed 6662 times ]
ShowHide Answer
Official Answer
A
Question exposed a gap? Take sectional Adaptive Quant, Verbal, or DI tests on GMAT Club and review the detailed score report. Get started →
User avatar
stne
User avatar
Joined: 27 May 2012
Last visit: 03 Sep 2026
Posts: 1,823
Own Kudos:
2,174
 [2]
Given Kudos: 692
Posts: 1,823
Kudos: 2,174
 [2]
A store purchased coats from a manufacturer at $40 each and then sold 26 Jan 2024, 18:52
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
guddo
A store purchased coats from a manufacturer at $40 each and then sold all of the coats. The store's gross profit on the sale of the coats was what percent of the store's revenue from the sale of the coats?

(1) The store sold 20 percent of the coats at $80 each and the rest of the coats at $60 each.
(2) The store's total revenue from the sale of the coats was $6,400.

Show Spoiler
Attachment:
2024-01-24_13-40-30.png
Show more

Let the number of coats involved in this transaction be \(x.\)

Thus C.P. \(= 40x\) and S.P = \(a*x\) where \(a\) is the S.P. per coat.

We need \((\frac{{a*x} - {40x}}{ax})100\) = \((1-\frac{40x}{ax})100\) \(...(i)\)

\(ax \)= Total revenue from sales.

(1) The store sold 20 percent of the coats at $80 each and the rest of the coats at $60 each.

\(ax =.2x*80 +.8x*60\)...(ii)

If we substitute the value of \(ax\) in (i) we will get the answer as the \(x\) from numerator and denominator will cancel.

SUFF.

(2) The store's total revenue from the sale of the coats was $6,400.

Using this, the \(x\) in the numerator which denotes the # of coats, does not cancel.

INSUFF.

Ans A.

Hope it helped.
User avatar
gmatophobia
User avatar
Quant Chat Moderator
Joined: 22 Dec 2016
Last visit: 30 Aug 2026
Posts: 3,174
Own Kudos:
12,314
 [2]
Given Kudos: 1,860
Location: India
Concentration: Strategy, Leadership
Posts: 3,174
Kudos: 12,314
 [2]
A store purchased coats from a manufacturer at $40 each and then sold 28 Jan 2024, 12:34
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
guddo
A store purchased coats from a manufacturer at $40 each and then sold all of the coats. The store's gross profit on the sale of the coats was what percent of the store's revenue from the sale of the coats?

(1) The store sold 20 percent of the coats at $80 each and the rest of the coats at $60 each.
(2) The store's total revenue from the sale of the coats was $6,400.


Show Spoiler
Attachment:
2024-01-24_13-40-30.png
Show more

Number of coats bought = \(x\)

Cost price of x coats = \(40*x\)

Statement 1

(1) The store sold 20 percent of the coats at $80 each and the rest of the coats at $60 each.

Revenue = \(\frac{20}{100} * x * 80 + \frac{80}{100} * x * 60 = 16x + 48x = 64x\)

Gross Profit = \(64x - 40x = 24x\)

\(\frac{\text{Gross Profit}}{\text{Revenue}} * 100 = \frac{24x}{64x}* 100 = \frac{2400}{64}\)

We can therefore obtain a unique answer for the question. Statement 1 alone is sufficient, eliminate B, C, and E.

Statement 2

(2) The store's total revenue from the sale of the coats was $6,400.

This statement alone is not sufficient as have no information to calculate the value of gross profits from the sale of coats.

Eliminate D.

Option A
User avatar
imaityaroy
User avatar
Joined: 18 Nov 2020
Last visit: 04 Sep 2026
Posts: 30
Own Kudos:
4
Given Kudos: 101
Products:
GMAT Club Tests
Posts: 30
Kudos: 4
A store purchased coats from a manufacturer at $40 each and then sold Updated on: 20 Jul 2026, 22:12
Originally posted by imaityaroy on 20 Jul 2026, 05:46.
Last edited by imaityaroy on 20 Jul 2026, 22:12, edited 1 time in total.
Kudos
Add Kudos
Bookmarks
Bookmark this Post
guddo
A store purchased coats from a manufacturer at $40 each and then sold all of the coats. The store's gross profit on the sale of the coats was what percent of the store's revenue from the sale of the coats?

(1) The store sold 20 percent of the coats at $80 each and the rest of the coats at $60 each.
(2) The store's total revenue from the sale of the coats was $6,400.


Show Spoiler
Attachment:
2024-01-24_13-40-30.png
Show more
Hi,
Can we solve like this ?
We have to find:
Quantity(SP - 40)/Quantity*SP
Quantity in numerator cancels Quantity in denominator hence, question become
what is (SP-40)/SP ... basically we have to find SP of 1 coat ?
From (1) we have the weighted average SP of 1 coat hence sufficient.
From (2) we have revenue ie SP*Quantity but we dont know the exact SP hence insufficient

Thank you
User avatar
egmat
User avatar
e-GMAT Representative
Joined: 02 Nov 2011
Last visit: 04 Sep 2026
Posts: 6,290
Own Kudos:
33,899
 [1]
Given Kudos: 715
GMAT Date: 08-19-2020
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 6,290
Kudos: 33,899
 [1]
A store purchased coats from a manufacturer at $40 each and then sold 20 Jul 2026, 20:00
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi imaityaroy,

Yes, your approach is completely valid, and it's actually the cleanest way to see this problem. Let me just tighten one word in how you're describing it.

You correctly reduced the target to:

Q(SP - 40) / (Q · SP) = (SP - 40) / SP

The Q cancels, so the profit percentage depends only on the selling price per coat - not on how many coats there are. Perfect.

The one refinement: when there are two different prices, the "SP" left in that formula is really the weighted-average selling price per coat, i.e. total revenue / number of coats. So from Statement (1):

- Average SP = 0.2(80) + 0.8(60) = 64
- Profit % = (64 - 40) / 64 = 37.5%

Since this is a single fixed number, Statement (1) is sufficient - exactly your conclusion.

Why your read on Statement (2) is also right: knowing revenue = SP · Q = 6400 gives you the product, but not the average SP by itself. And that average is exactly what you need. Watch two cases that both satisfy the statement:

- 100 coats - average SP = 64, cost = 4000, profit = 2400 - 37.5%
- 80 coats - average SP = 80, cost = 3200, profit = 3200 - 50%

Same revenue of $6,400, two different answers - not sufficient. That's precisely the gap you sensed: revenue alone doesn't pin down the per-coat SP.

So your logic holds end to end.

Answer: A

imaityaroy

Hi,
Can we solve like this ?
We have to find:
Quantity(SP - 40)/Quantity*SP
Quantity in numerator cancels Quantity in denominator hence, question become
what is (SP-40)/SP ... basically we have to find SP of 1 coat ?
From (1) we have the weighted average SP of 1 coat hence sufficient.
From (2) we have revenue ie SP*Quantity but we dont the exact SP hence insufficient

Thank you
Show more
Moderators:
Bunuel
Math Expert
113129 posts
FrozenDragon
DI Forum Moderator
409 posts