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20 Mar 2026, 14:25
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
21% (01:42) correct
79%
(02:10)
wrong
based on 62
sessions
History
Date
Time
Result
Not Attempted Yet
Fairview department store bought a number of regular-quality and premium-quality shirts at various prices, at an average cost of $40 per shirt. Each shirt was priced at 50% above its respective purchase price. At the end of the season, all unsold shirts were marked down and sold. Did Fairview make an overall profit on the shirts?
(1) 80% of the shirts were sold at the original retail price.
(2) The markdown price was $12 per shirt.
(1) 80% of the shirts were sold at the original retail price.
(2) The markdown price was $12 per shirt.
20 Mar 2026, 23:13
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(1) Even if 80% of the shirts were sold at the original retail price, the difference between their buying price and selling price is 0, So the rest 20% which were sold at 50% higher would generate a profit
Sufficient
(2) We dont know how many were unsold and what was the exact price of buying or selling
Insufficient
Therefore, (A)
Sufficient
(2) We dont know how many were unsold and what was the exact price of buying or selling
Insufficient
Therefore, (A)
21 Mar 2026, 20:50
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We can't really answer this question based on the information provided in the 2 options, so the answer should be E.
Initially, we are told that premium and regular quality shirts are purchased at 'various prices'. For simplicity sake lets assume all premium cost a and all regular cost b. and lets assume that the number of these shirts is x and y respectively. Next, we know that the average price of these shirts combined is 40$. => Cost Price of shirts for Fairview Department Store = 40(x+y)
About the selling price, we know that a,b both now have a markup of 50% so the selling price (aka original retail price) is 3a/2 and 3b/2.
This is all the things we know from the question, now we'll look at the options.
(1) 80% of the shirts were sold at the original retail price.
Here it would seem that technically the SP for 80% of the shirts should be 80% of 40(3/2)(x+y) from our previous understanding of Cost Price, but we dont know what share of premium vs regular shirts have been sold, neither do we know what is the price difference of the 2 types of shirts. We can't tell how much money could have been made as profit here. Nor can we tell how much of the Cost Price we would still have to offset from the remain 20% shirts to tell if we made a profit.
=> INSUFFICIENT
(2) Markdown price is 12$ per shirt.
Here, we still don't know how much profit we would have made while selling at the original retail price, and neither do we know how much of a loss are we incurring by selling shirts at 12$ across the board.
=>INSUFFICIENT
(1) + (2)
Even considering the 2 together, we would still not know the profit made over the first 80% of the shirts or the loss incurred on the remain of the 20% of the shirts coz we don't know the original retail price
=> INSUFFICIENT
Therefore, E is correct
Initially, we are told that premium and regular quality shirts are purchased at 'various prices'. For simplicity sake lets assume all premium cost a and all regular cost b. and lets assume that the number of these shirts is x and y respectively. Next, we know that the average price of these shirts combined is 40$. => Cost Price of shirts for Fairview Department Store = 40(x+y)
About the selling price, we know that a,b both now have a markup of 50% so the selling price (aka original retail price) is 3a/2 and 3b/2.
This is all the things we know from the question, now we'll look at the options.
(1) 80% of the shirts were sold at the original retail price.
Here it would seem that technically the SP for 80% of the shirts should be 80% of 40(3/2)(x+y) from our previous understanding of Cost Price, but we dont know what share of premium vs regular shirts have been sold, neither do we know what is the price difference of the 2 types of shirts. We can't tell how much money could have been made as profit here. Nor can we tell how much of the Cost Price we would still have to offset from the remain 20% shirts to tell if we made a profit.
=> INSUFFICIENT
(2) Markdown price is 12$ per shirt.
Here, we still don't know how much profit we would have made while selling at the original retail price, and neither do we know how much of a loss are we incurring by selling shirts at 12$ across the board.
=>INSUFFICIENT
(1) + (2)
Even considering the 2 together, we would still not know the profit made over the first 80% of the shirts or the loss incurred on the remain of the 20% of the shirts coz we don't know the original retail price
=> INSUFFICIENT
Therefore, E is correct
