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Difficulty:
75%
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Question Stats:
46% (01:22) correct
54%
(01:38)
wrong
based on 78
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A CD was initially listed at a price that would have given the store a profit of 20% of the wholesale cost. What was the wholesale cost of the CD?
(1) After reducing the asking price by 10%, the CD sold for a net profit of $10.00
(2) The CD sold for $50.00
(1) After reducing the asking price by 10%, the CD sold for a net profit of $10.00
(2) The CD sold for $50.00
01 Feb 2026, 23:53
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A CD was initially listed at a price that would have given the store a profit of 20% of the wholesale cost. What was the wholesale cost of the CD?
(1) After reducing the asking price by 10%, the CD sold for a net profit of $10.00
(2) The CD sold for $50.00
Let the initial listed price of the CD be LP, and the wholesale cost of the CD be CP.
LP = 1.2 CP
We need to find out the value of CP.
Let's look at each statement individually and then at both of them together (if required):
Statement 1: After reducing the asking price by 10%, the CD sold for a net profit of $10.00
The selling price of the CD = 0.9 LP = 0.9*1.2 CP = 1.08 CP
As Profit = SP - CP:
1.08 CP - CP = 10
0.08 CP = 10
Thus, the wholesale cost of the CD (CP) = 125
Hence, we can determine the answer using Statement 1 alone.
Now, let's take a look at Statement 2 closely:
Statement 2: The CD sold for $50.00
While this option tells us about the selling price of the CD, we do not know if this was the original price or the discounted price of the CD. Using this statement alone, we would not be able to find out the wholesale price of the CD clearly.
Hence, Statement 2 is insufficient alone.
As we were able to figure out the answer using Statement 1 alone, the correct answer is Option A - Statement (1) alone is sufficient, but statement (2) alone is not sufficient.
Hope this helps!
(1) After reducing the asking price by 10%, the CD sold for a net profit of $10.00
(2) The CD sold for $50.00
Let the initial listed price of the CD be LP, and the wholesale cost of the CD be CP.
LP = 1.2 CP
We need to find out the value of CP.
Let's look at each statement individually and then at both of them together (if required):
Statement 1: After reducing the asking price by 10%, the CD sold for a net profit of $10.00
The selling price of the CD = 0.9 LP = 0.9*1.2 CP = 1.08 CP
As Profit = SP - CP:
1.08 CP - CP = 10
0.08 CP = 10
Thus, the wholesale cost of the CD (CP) = 125
Hence, we can determine the answer using Statement 1 alone.
Now, let's take a look at Statement 2 closely:
Statement 2: The CD sold for $50.00
While this option tells us about the selling price of the CD, we do not know if this was the original price or the discounted price of the CD. Using this statement alone, we would not be able to find out the wholesale price of the CD clearly.
Hence, Statement 2 is insufficient alone.
As we were able to figure out the answer using Statement 1 alone, the correct answer is Option A - Statement (1) alone is sufficient, but statement (2) alone is not sufficient.
Hope this helps!
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