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
Answer - C
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
dave13I'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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