February 23, 2019 February 23, 2019 07:00 AM PST 09:00 AM PST Learn reading strategies that can help even nonvoracious reader to master GMAT RC. Saturday, February 23rd at 7 AM PT February 24, 2019 February 24, 2019 07:00 AM PST 09:00 AM PST Get personalized insights on how to achieve your Target Quant Score.
Author 
Message 
TAGS:

Hide Tags

Manager
Joined: 08 Sep 2010
Posts: 168
Location: India
WE 1: 6 Year, Telecom(GSM)

WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
Updated on: 21 Oct 2010, 08:42
Question Stats:
59% (02:24) correct 41% (01:36) wrong based on 103 sessions
HideShow timer Statistics
WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OTHER AT A LOSS OF 20%.THEN THE SELLER INCURES A LOSS OR GAIN OF: A. no loss no gain B. 20 % profit C. 4% loss D. 2% profit E. 2% loss.
Official Answer and Stats are available only to registered users. Register/ Login.
Originally posted by ankitranjan on 20 Oct 2010, 03:29.
Last edited by ankitranjan on 21 Oct 2010, 08:42, edited 3 times in total.



Manager
Joined: 13 Aug 2010
Posts: 150

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 03:54
say the price of the bike is 100, so he bought it in 120, since he paid 20% extra. Now again he sold the bike in 124, so he has $ 4 as profit.
(4/120)*100 = 3.33% profit.



Intern
Joined: 08 Nov 2009
Posts: 28
Location: United States (AK)
Concentration: Marketing, Entrepreneurship
GPA: 3.4
WE: Engineering (Health Care)

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 04:23
Hope that I understood the question correctly, but if he sells 2 items separately and their original price was the same  there should be no profit or loss..
pick numbers: Product 1 = 100, 20 % gain = 20, Sell price = 120 Product 2 = 100, 20% loss = 20, Sell price = 80
If you sum both up, you should get 120+80 = 200 which is the same as if he would have sold both of them in the original price (100 + 100 = 200)



Retired Moderator
Status: 2000 posts! I don't know whether I should feel great or sad about it! LOL
Joined: 04 Oct 2009
Posts: 1133
Location: Peru
Schools: Harvard, Stanford, Wharton, MIT & HKS (Government)
WE 1: Economic research
WE 2: Banking
WE 3: Government: Foreign Trade and SMEs

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 04:37
eladshus wrote: Hope that I understood the question correctly, but if he sells 2 items separately and their original price was the same  there should be no profit or loss..
pick numbers: Product 1 = 100, 20 % gain = 20, Sell price = 120 Product 2 = 100, 20% loss = 20, Sell price = 80
If you sum both up, you should get 120+80 = 200 which is the same as if he would have sold both of them in the original price (100 + 100 = 200) I agree with eladshus. IMO is A. However, I think that the question has a problem; it doesn't mention whether the products cost the same amount.
_________________
"Life’s battle doesn’t always go to stronger or faster men; but sooner or later the man who wins is the one who thinks he can."
My Integrated Reasoning Logbook / Diary: http://gmatclub.com/forum/myirlogbookdiary133264.html
GMAT Club Premium Membership  big benefits and savings



Manager
Joined: 13 Aug 2010
Posts: 150

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 04:44
I missunderstood the question completely. + 1 for A



Manager
Joined: 13 Aug 2010
Posts: 150

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 07:16
well the question i was solving for is some what like.... if a buys a bike with a loss of 20 % and again sells the bike with a profit of 20%, what was his profit or loss......
so for this the solution below fits rite ?
say the price of the bike is 100, so he bought it in 120, since he paid 20% extra. Now again he sold the bike in 124, so he has $ 4 as profit.
(4/120)*100 = 3.33% profit.



Manager
Joined: 17 Apr 2010
Posts: 57

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 08:00
I understood the question the following way
The 2 items are sold at 1656 each , one at a profit of 20% and the other at a loss of 20%
So the original rates of the items are 1380 and 2070 respectively So the total he spend for those 2 items is 3450 but he ended up in selling them with (1656*2) 3312
So the loss is 3450  3312 = 138 The loss percentage is (138/3450) *100 = 4% loss  Answer C
Please consider KUDOS if you like my post



Senior Manager
Joined: 06 Jun 2009
Posts: 282
Location: USA
WE 1: Engineering

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 10:38
CTwo items, A and B 1.2A = 1656 => A = 1656/1.2 = 1380 0.8B = 1656 => B = 1656/0.8 = 2070 Profit from A = 1656  1380 = 276 Profit from B = 1656  2070 = 414 (loss) Total loss or profit = 276414 = 138 Loss % for A & B = 138 / (1380+2070) =  4% ======== 4 % Loss !
_________________
All things are possible to those who believe.



GMAT Tutor
Joined: 24 Jun 2008
Posts: 1354

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 11:50
The selling price here is the *final* price, not the *starting* price. The answer is not A; that's the trap. We know we sold two items for $x each (it doesn't actually matter what x is, only that it's the same for both items, and the number in the question seems awkward to work with, so I'll use a letter instead). If we bought the first item for $b, we know we made 20%: $b (+20%)> $x so x = 1.2b, or b = 5x/6. If the other item cost $c, we know we lost 20%: $c (20%)> $x so x = 0.8c, or c = 5x/4. So we bought the two items for $(b+c) = $(5x/6 + 5x/4) = $25x/12, and sold them for $2x. Thus, overall, we took a loss of $(x/12) on our initial purchase price of $(25x/12). So the percent loss is 100% * (x/12)/(25x/12) = 100% * (1/25) = 4%.
_________________
GMAT Tutor in Toronto
If you are looking for online GMAT math tutoring, or if you are interested in buying my advanced Quant books and problem sets, please contact me at ianstewartgmat at gmail.com



Intern
Joined: 10 Oct 2010
Posts: 22

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 12:53
I am still confused



Senior Manager
Joined: 06 Jun 2009
Posts: 282
Location: USA
WE 1: Engineering

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
20 Oct 2010, 13:51
Wofford wrote: I am still confused The selling price for both items is $1656. One was sold at 20% profit and one at 20% loss. Therefore, The cost (A) of one item was below $1656  A + A*20/100 = $1656 (sold at a profit) The cost (B) of second item was above $1656  B  B*20/100 = $1656 (sold at a loss)
_________________
All things are possible to those who believe.



Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 8895
Location: Pune, India

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
21 Oct 2010, 04:20
Tiruraju, Adishail and Ian have already explained the solution quite well so I will not repeat it, though I do want to add the following notes. Note I: When two items are sold at the same price, one at a profit of a% and other at a loss of a% (which means the cost price of one item was lower than the selling price and the cost price of the other item was higher than the selling price), there will always be a loss of (a^2)/100 %. e.g. Here a = 20, so loss % = (20)^2/100 % = 4%. Note II: When two items are bought at the same price and then one is sold at a profit of a% and the other is sold at a loss of a% (which means one is sold at selling price which is higher than cost price and the other is sold at selling price which is lower than cost price), there is no profit, no loss. Confirm using examples. Get back to me if you need the derivation of the formula above.
_________________
Karishma Veritas Prep GMAT Instructor
Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >



Intern
Joined: 10 Oct 2010
Posts: 22

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
21 Oct 2010, 05:52
Ahhh got it now. Thanks Karishma.



Intern
Joined: 07 Sep 2010
Posts: 14

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
23 Oct 2010, 02:28
excellent question....



Manager
Joined: 11 Jul 2010
Posts: 187

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
24 Oct 2010, 00:47
Super tip  thx Karishma
Knowing the (a^2/100)% formula when same SP AND same % of loss and gain is a real time saver. Thanks.



Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 8895
Location: Pune, India

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
24 Oct 2010, 17:58
Glad it helped gmat1011, though formulae come with a caveat. Formulae will take you only some of the way, the rest you need to get through using logic and conceptual understanding of the topic. There will be times (such as higher level questions) when formulae may not be applicable. That said, once you understand the topic and concepts involved, using a formula, when relevant, can be a real time saver.
_________________
Karishma Veritas Prep GMAT Instructor
Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >



Intern
Status: Vice President
Joined: 16 May 2016
Posts: 14
Location: India
Concentration: Finance, Strategy
GPA: 2
WE: Operations (Other)

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
28 Aug 2016, 02:03
ankitranjan wrote: WHEN A PERSON SELLS TWO ITEMS $1656 each,ONE AT A GAIN OF 20% AND OTHER AT A LOSS OF 20%.THEN THE SELLER INCURES A LOSS OR GAIN OF:
1.no loss no gain 2. 20 % profit 3.4% loss 4.2% profit 5. 2% loss.
Consider KUDOS if u like this question. GMAT expects us to solve the questions within 2 mins. For that, remember this formula When the SP is same and Gain and Profit % is common, the Loss % = (Common gain/loss%)^2/100 And the formula for loss amount is = 2 X (Common gain/loss%)^2 X Selling Price/(100^2(Common gain/loss%)^2) So answer is 20^2/100 = 400/100=4 C
_________________
Route to 700+



NonHuman User
Joined: 09 Sep 2013
Posts: 9892

Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
Show Tags
01 Oct 2018, 00:51
Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up  doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Books  GMAT Club Tests  Best Prices on GMAT Courses  GMAT Mobile App  Math Resources  Verbal Resources




Re: WHEN A PERSON SELLS TWO ITEMS $1656 each, ONE AT A GAIN OF 20% AND OT
[#permalink]
01 Oct 2018, 00:51






