At the beginning of last year, a furniture store had 75 armchairs in

Question

At the beginning of last year, a furniture store had 75 armchairs in stock, which had cost the store $600 each. During the same year, the store purchased a number of additional armchairs. What is the total amount spent by the store on the armchairs it had in stock at the end of last year?

(1) Last year, the store purchased 30 armchairs for $500 each. 
 (2) Last year, the total revenue from the sale of armchairs was $16,500.

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Shwarma · Answer

Option A
 
Qs: (75+600)+ (x*$) =??

1. x= 30 $= 500 --> sufficient
2. Revenue= 16500 --> but we don't know the SP to calculate the number and either way we don't know if all was sold, so --> insufficient

EshaFatim · Answer

In my opinion option E.

Cause it asked how many chairs the store  had in stock at the  end of the year   .

At the beginning, it had some in stock. and later in statement 1, they say that the store purchased 30 more. But I couldn't see any clue of leftover stock at the end of the day, guessing that the store must have sold some.

Now in statement 2, it says that total revenue was $16,500. However it doesn't  entail the revenue came from selling how many chairs or what the unit price was . So the number seems pretty much useless.

Mixing both the statements together didn't give me any clue either as no option talks about total sales to calculate the leftover stock at the end of last year.

So  option E  IMO.

Abdelaali91 · Answer

I beleive the question is about the  total amount spent by the store on the armchairs it had in stock.
1/ alone is sufficient but 2/ alone is not.
So answer A.

Krunaal · Answer

Statement 1

We don't know the no. of armchairs the store had in stock at the end of the last year.  INSUFFICIENT

Statement 2

Same problem, we don't know the no. of armchairs the store had in stock at the end of the last year.  INSUFFICIENT

Both together

Maybe the store sold 1 chair for $16,500, or maybe they sold 100. We don't know the no. of armchairs the store had in stock at the end of the last year.  INSUFFICIENT

Answer E.

chai9944 · Answer

Wow, this question is some trap, normally I have seen people going AD/BCE, and once the first statement goes correct, people simply strike off B,C and E. This question is such a trap, even after you get the first statement right, the answer lies in E. Such a trap question this is!!!

Advait01 · Answer

How is it E, the questions only asks total amount spent (Cost Price) of arm chairs, Since it only purcharsed 30 last year for $500 each

The question does ot ask number at the end

Can anyone explain??

Bunuel · Answer

The question does not ask how much the store spent on the 30 armchairs purchased last year. It asks how much the store had spent on the armchairs that remained in stock at the end of last year.

egmat · Answer

Hi Advait01,

You read "total amount spent" correctly as a  cost  question, not a selling-price question. That part of your thinking is fine. The piece that's slipping past you is a few words in the question stem.

The stem doesn't ask for the total spent on  every  armchair the store bought. It asks for the total spent on the armchairs it  had in stock at the end of last year  - that is, only the units still sitting unsold on the shelf at year-end.

During the year the store also  sold  armchairs. So the chairs left at the end = (start + purchased) - (sold). To find the cost of what's left, you need to know  how many were sold, and which ones  (the  $600  group or the  $500  group). Statement ( 1 ) tells you nothing about sales.

Watch two cases that both obey Statement (1):

- Suppose the store sold  0  chairs. Stock at year-end = all  105  units - cost =  75  x  $600  +  30  x  $500  =  $60,000 .
- Suppose the store sold the  30  cheaper chairs. Stock at year-end = the original  75  - cost =  75  x  $600  =  $45,000 .

Same statement, two different totals - so Statement ( 1 ) is  not sufficient .

Statement ( 2 ) only gives revenue ( $16,500 ) with no selling price, so you can't even find how many were sold. And together you still have no per-unit selling price, and no way to know whether the sold chairs were the  $600  or  $500  ones. So the combination fails too.

The takeaway:  when a DS question restricts the quantity ("in stock at the end"), the cost of  all  units bought isn't the target - you must be able to pin down the cost of exactly the units that remain. Two valid cases with different answers -  not sufficient .

Answer: E

At the beginning of last year, a furniture store had 75 armchairs in

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GMAT Data Sufficiency (DS) Questions

At the beginning of last year, a furniture store had 75 armchairs in

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615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

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