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

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Re: What was the price at which a merchant sold a certain appliance? [#permalink]
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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 Intern Joined: 25 Dec 2011 Posts: 31 Own Kudos [?]: 10 [1] Given Kudos: 0 GMAT 1: 710 Q42 V44 GPA: 3.84 WE:Marketing (Energy and Utilities) Re: What was the price at which a merchant sold a certain appliance? [#permalink] 1 Bookmarks 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

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Re: What was the price at which a merchant sold a certain appliance? [#permalink]
Is "gross profit" equal to the difference between sale price and cost of good?
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Re: What was the price at which a merchant sold a certain appliance? [#permalink]
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. Answer: C. Hope it's clear. Intern Joined: 25 Jun 2011 Posts: 23 Own Kudos [?]: 2 [0] Given Kudos: 7 Location: Sydney Re: What was the price at which a merchant sold a certain appliance? [#permalink] Okay thanks. What about "profit" is that the same as gross profit in terms of calculation? Math Expert Joined: 02 Sep 2009 Posts: 93968 Own Kudos [?]: 634429 [1] Given Kudos: 82435 Re: What was the price at which a merchant sold a certain appliance? [#permalink] 1 Kudos Expert Reply 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. Manager Joined: 10 Jul 2013 Posts: 228 Own Kudos [?]: 1046 [2] Given Kudos: 102 Re: What was the price at which a merchant sold a certain appliance? [#permalink] 2 Kudos solution: ...........................cost......................................................................sell st(1)................... x .................................................................. 120%x insufficient st(2)................... p ....................................................................... p+5 insufficient using both, p × 120% = p+5 or, p = 25 . So Answer (C) Intern Joined: 18 May 2014 Posts: 42 Own Kudos [?]: 76 [1] Given Kudos: 6 Location: United States Concentration: General Management, Other GMAT Date: 07-31-2014 GPA: 3.99 WE:Analyst (Consulting) Re: What was the price at which a merchant sold a certain appliance? [#permalink] 1 Kudos SP = P + Purchase Price (PP) Combined we have SP = X Profit = 50 = 0.2X So SP = 250 Hence C VP Joined: 09 Mar 2016 Posts: 1145 Own Kudos [?]: 1023 [0] Given Kudos: 3851 Re: What was the price at which a merchant sold a certain appliance? [#permalink] 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.,,, CEO Joined: 26 Feb 2016 Posts: 2865 Own Kudos [?]: 5270 [1] Given Kudos: 47 Location: India GPA: 3.12 Re: What was the price at which a merchant sold a certain appliance? [#permalink] 1 Bookmarks 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 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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Re: What was the price at which a merchant sold a certain appliance? [#permalink]
Bunuel wrote:
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.

Hello Bunuel
What if people don't know the highlighted part? i mean: is there any other way to solve this?
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Re: What was the price at which a merchant sold a certain appliance? [#permalink]
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Re: What was the price at which a merchant sold a certain appliance? [#permalink]
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