GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 19 Sep 2018, 14:08

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

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

Author Message
TAGS:

### Hide Tags

Manager
Joined: 10 Oct 2005
Posts: 113
Location: Hollywood
What was the price at which a merchant sold a certain  [#permalink]

### Show Tags

10 Oct 2005, 11:25
2
00:00

Difficulty:

15% (low)

Question Stats:

74% (00:45) correct 26% (00:42) wrong based on 271 sessions

### HideShow timer Statistics

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... Director Status: No dream is too large, no dreamer is too small Joined: 14 Jul 2010 Posts: 544 Re: DS: Appliance [#permalink] ### Show Tags 13 May 2011, 06:25 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! _________________ Collections:- PSof OG solved by GC members: http://gmatclub.com/forum/collection-ps-with-solution-from-gmatclub-110005.html DS of OG solved by GC members: http://gmatclub.com/forum/collection-ds-with-solution-from-gmatclub-110004.html 100 GMAT PREP Quantitative collection http://gmatclub.com/forum/gmat-prep-problem-collections-114358.html Collections of work/rate problems with solutions http://gmatclub.com/forum/collections-of-work-rate-problem-with-solutions-118919.html Mixture problems in a file with best solutions: http://gmatclub.com/forum/mixture-problems-with-best-and-easy-solutions-all-together-124644.html Retired Moderator Joined: 16 Nov 2010 Posts: 1452 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 Director Status: No dream is too large, no dreamer is too small Joined: 14 Jul 2010 Posts: 544 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
_________________

Collections:-
PSof OG solved by GC members: http://gmatclub.com/forum/collection-ps-with-solution-from-gmatclub-110005.html
DS of OG solved by GC members: http://gmatclub.com/forum/collection-ds-with-solution-from-gmatclub-110004.html
100 GMAT PREP Quantitative collection http://gmatclub.com/forum/gmat-prep-problem-collections-114358.html
Collections of work/rate problems with solutions http://gmatclub.com/forum/collections-of-work-rate-problem-with-solutions-118919.html
Mixture problems in a file with best solutions: http://gmatclub.com/forum/mixture-problems-with-best-and-easy-solutions-all-together-124644.html

Intern
Joined: 25 Dec 2011
Posts: 32
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  [#permalink]

### Show Tags

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: 37 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: 49251 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.
_________________
Intern
Joined: 25 Jun 2011
Posts: 37
Location: Sydney
Re: What was the price at which a merchant sold a certain  [#permalink]

### Show Tags

14 Jul 2012, 15:08
Okay thanks. What about "profit" is that the same as gross profit in terms of calculation?
Math Expert
Joined: 02 Sep 2009
Posts: 49251
Re: What was the price at which a merchant sold a certain  [#permalink]

### Show Tags

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.
_________________
Senior Manager
Joined: 10 Jul 2013
Posts: 316
What was the price at which a merchant sold a certain  [#permalink]

### Show Tags

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 .
_________________

Asif vai.....

Manager
Joined: 18 May 2014
Posts: 61
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  [#permalink]

### Show Tags

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
Director
Joined: 09 Mar 2016
Posts: 863
Re: What was the price at which a merchant sold a certain  [#permalink]

### Show Tags

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.,,,
_________________

In English I speak with a dictionary, and with people I am shy.

BSchool Forum Moderator
Joined: 26 Feb 2016
Posts: 3131
Location: India
GPA: 3.12
What was the price at which a merchant sold a certain  [#permalink]

### Show Tags

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!
_________________

You've got what it takes, but it will take everything you've got

What was the price at which a merchant sold a certain &nbs [#permalink] 23 Apr 2018, 13:49
Display posts from previous: Sort by

# Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.