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# What was the price at which a merchant sold a certain

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Manager
Joined: 10 Oct 2005
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Location: Hollywood
What was the price at which a merchant sold a certain  [#permalink]

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10 Oct 2005, 11:25
2
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Difficulty:

15% (low)

Question Stats:

74% (01:07) correct 26% (01:09) wrong based on 239 sessions

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What was the price at which a merchant sold a certain appliance?

(1) The merchant's gross profit on the appliance was 20 percent of the price at which the merchant sold the appliance.
(2) The price at which the merchant sold the appliance was $50 more than the merchant's cost of the appliance. Official Guide 12 Question  Question: 33 Page: 275 Difficulty: 600 Find All Official Guide Questions Video Explanations: _________________ The GMAT, too tough to be denied. Beat the tough questions... Senior Manager Status: No dream is too large, no dreamer is too small Joined: 14 Jul 2010 Posts: 450 Re: DS: Appliance [#permalink] ### Show Tags 13 May 2011, 06:25 2 1 s= selling price c = cost price p = profit p = s - c (a) p=20%s, s-c= .20s 0.8s = c, no information is given about c. INSUF. (b) s = c + 50, no information of C INSUF. FOR C c + 50 - c = 0.20s .2s = 50 s = 250 Ans. C I give no new technique. Sorry! _________________ Retired Moderator Joined: 16 Nov 2010 Posts: 1308 Location: United States (IN) Concentration: Strategy, Technology Re: DS: Appliance [#permalink] ### Show Tags 13 May 2011, 06:59 Profit = SP - CP (1) Profit = 0.20SP => CP = 0.80SP Not Sufficient (2) 50 = SP - CP Not Sufficient (1) + (2) 0.20SP = 50 => SP = 250 Answer - C _________________ Formula of Life -> Achievement/Potential = k * Happiness (where k is a constant) GMAT Club Premium Membership - big benefits and savings Senior Manager Status: No dream is too large, no dreamer is too small Joined: 14 Jul 2010 Posts: 450 Re: What was the price at which a merchant sold a certain [#permalink] ### Show Tags 02 Jan 2012, 06:37 1 Jasontuyj2012 wrote: What was the price at which a merchant sold a certain appliance? (1) The merchant's gross profit on the appliance was 20% of the price at which the merchant sold the appliance. (2) The price at which the merchant sold the appliance was$50 more than the merchant's cost of the appliance.

I chose E.

P = s-c
1) p = 0.20s Insufficient
2) p = 50 Insufficient

For Both: 0.20s =50
Ans. C
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Re: What was the price at which a merchant sold a certain  [#permalink]

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02 Jan 2012, 08:21
1
It's C.

(1) The merchant's gross profit on the appliance was 20% of the price at which the merchant sold the appliance.

Let p = profit
Let x = original cost of the appliance to the merchant

p = x + .2x

This alone won't give us the original price. #1 is insufficient.

(2) The price at which the merchant sold the appliance was $50 more than the merchant's cost of the appliance. Using the original variables... p = x + 50 This alone won't do it. #2 is insufficient. However, comparing the two equations: .2x = 50 x = 250 250 + 50 = 300 Answer: C. Intern Joined: 25 Jun 2011 Posts: 31 Location: Sydney Re: What was the price at which a merchant sold a certain [#permalink] ### Show Tags 13 Jul 2012, 18:57 Is "gross profit" equal to the difference between sale price and cost of good? Math Expert Joined: 02 Sep 2009 Posts: 58095 Re: What was the price at which a merchant sold a certain [#permalink] ### Show Tags 14 Jul 2012, 04:00 dianamao wrote: Is "gross profit" equal to the difference between sale price and cost of good? Yes, {Gross Profit} = {Selling Price} - {Cost} What was the price at which a merchant sold a certain appliance? Question: {Selling Price}=? (1) The merchant's gross profit on the appliance was 20 percent of the price at which the merchant sold the appliance --> {Selling Price} - {Cost} = 0.2*{Selling Price} --> 0.8*{Selling Price} = {Cost}. One equation two unknowns. Not sufficient. (2) The price at which the merchant sold the appliance was$50 more than the merchant's cost of the appliance --> {Cost} +$50 = {Selling Price}. One equation two unknowns. Not sufficient. (1)+(2) We have that 0.8*{Selling Price} = {Cost} and {Cost} +$50 = {Selling Price}. So, we have two distinct linear equations with two unknowns, hence we can solve for each. Sufficient.

Hope it's clear.
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Re: What was the price at which a merchant sold a certain  [#permalink]

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14 Jul 2012, 15:08
Okay thanks. What about "profit" is that the same as gross profit in terms of calculation?
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Re: What was the price at which a merchant sold a certain  [#permalink]

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15 Jul 2012, 07:05
dianamao wrote:
Okay thanks. What about "profit" is that the same as gross profit in terms of calculation?

Yes, generally profit and gross profit are the same on the GMAT.
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What was the price at which a merchant sold a certain  [#permalink]

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07 Aug 2013, 07:43
2
solution:

...........................cost......................................................................sell
st(1)................... x .................................................................. 120%x insufficient
st(2)................... p ....................................................................... p+5 insufficient
using both, p × 120% = p+5
or, p = 25 .
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Re: What was the price at which a merchant sold a certain  [#permalink]

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18 May 2014, 11:12
1
SP = P + Purchase Price (PP)

Combined we have

SP = X
Profit = 50 = 0.2X

So SP = 250
Hence C
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Re: What was the price at which a merchant sold a certain  [#permalink]

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23 Apr 2018, 13:35
subhashghosh wrote:
Profit = SP - CP

(1)

Profit = 0.20SP

=> CP = 0.80SP

Not Sufficient

(2)

50 = SP - CP

Not Sufficient

(1) + (2)

0.20SP = 50

=> SP = 250

pushpitkc hello

can you explain please how do we combine both statements and how we get this => CP = 0.80SP perhaps afterwork hours effect me but somehow cant combine these two statments.,,,
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What was the price at which a merchant sold a certain  [#permalink]

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23 Apr 2018, 13:49
1
dave13 wrote:
subhashghosh wrote:
Profit = SP - CP

(1)

Profit = 0.20SP

=> CP = 0.80SP

Not Sufficient

(2)

50 = SP - CP

Not Sufficient

(1) + (2)

0.20SP = 50

=> SP = 250

pushpitkc hello

can you explain please how do we combine both statements and how we get this => CP = 0.80SP perhaps afterwork hours effect me but somehow cant combine these two statments.,,,

Hey dave13

I'm sure you must be aware of the following definitions but am writing them anyway
SP = CP + Profit -> Profit = SP - CP

Now, coming back to the question

Quote:
What was the price at which a merchant sold a certain appliance?

(1) The merchant's gross profit on the appliance was 20 percent of the price at which the merchant sold the appliance.
(2) The price at which the merchant sold the appliance was \$50 more than the merchant's cost of the appliance.

1. Profit was 20% of SP (or) Profit = 0.2*SP
This can be written as 0.2*SP = SP - CP -> CP = 0.8*SP
We can't arrive at an unique price at which the appliance was sold(Stmt 1 alone is insufficient)

2. SP = CP + 50(for every unique cost price, the selling price will wary - no unique price)
Now, statement 2 is also insufficient!

On combining the two statements,
we know that CP = 0.8*SP -> SP - 50 = 0.8*SP -> (1-0.8)SP = 50 -> SP = $$\frac{50}{0.2} = \frac{500}{2} = 250$$

Hope that helps you!
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25 Aug 2019, 13:12
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Re: What was the price at which a merchant sold a certain   [#permalink] 25 Aug 2019, 13:12
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