Data Sufficiency

At the beginning of last month, a stationery store had in stock 250 writing pads, which had cost the store $0.75 each. During the same month, the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

(1) Last month the store purchased 150 writing pads for $0.80 each.

(2) Last month the total revenue from the sale of writing pads was $180.


OA after discussion

IMO: C

Total amount spent by the store on the writing pads it had in stock at the end of last month
= Amount spent on the stock(already in stock) + Amount spent on the stock(Purchased during this month) - Amount received on the sale.

(1) Last month the store purchased 150 writing pads for $0.80 each.

Total amount spent by the store on the writing pads it had in stock at the end of last month
= Amount spent on the stock(already in stock) + Amount spent on the stock(Purchased during this month) - Amount received on the sale.
Total amount spent by the store on the writing pads it had in stock at the end of last month
= 250*$0.75 + 150*$0.80 - Amount received on the sale(Unknown).
= 250*$0.75 + 150*$0.80 - Unknown
Insufficient!

(2) Last month the total revenue from the sale of writing pads was $180.

Total amount spent by the store on the writing pads it had in stock at the end of last month
= Amount spent on the stock(already in stock) + Amount spent on the stock(Purchased during this month) - Amount received on the sale.

Total amount spent by the store on the writing pads it had in stock at the end of last month
= 250*$0.75 + Amount spent on the stock(Purchased during this month) - $180.
= 250*$0.75 + Unknown - $180.

from 1 and 2

Amount spent on the stock(Purchased during this month) = 150*$0.80 and
Amount received on the sale = $180
Total amount spent by the store on the writing pads it had in stock at the end of last month = = 250*$0.75 + 150*$0.80 - $180.

I think it should be E

Statement 2 says sale is $180, it is possible they sell 1 writing pad for $180 (or) 'n' number of pads for $180. Since we dont know many many they sell, dont think we can determine the value of remaining stock. (again depends on how many they sold)

shankar.ashwin wrote:I think it should be E
Statement 2 says sale is $180, it is possible they sell 1 writing pad for $180 (or) 'n' number of pads for $180. Since we dont know many many they sell, dont think we can determine the value of remaining stock. (again depends on how many they sold)

But isn't he asking about

'total amount spent by the store on the writing pads it had in stock at the end of last month? '

How does the number of pads matter, if you know the their worth ?

I am not sure, but we have a total of 300 pads here (150 - $0.8 each and 250 - $0.75 each variants)

Now if I sold only 1 pad (of the $0.8/$0.75 variant) for $180, I will have 299 remaining in stock and cost of stock remaining at the end of month cannot be determined unless I know which varient we sold and how many were sold. Similarly I can sell 10 pads for $180 and again it would give a different answer of the stock remaining.

The question reads, 'Amount spend on the store on writing pads it had in stock at end of the month'

And dont think we can determine an exact number here. I dont think we can assume selling prices. Am I thinking wrong here?

neelgandham wrote:
But isn't he asking about

'total amount spent by the store on the writing pads it had in stock at the end of last month? '

How does the number of pads matter, if you know the their worth ?

shankar.ashwin wrote:I am not sure, but we have a total of 300 pads here (150 - $0.8 each and 250 - $0.75 each variants)

Now if I sold only 1 pad (of the $0.8/$0.75 variant) for $180, I will have 299 remaining in stock and cost of stock remaining at the end of month cannot be determined unless I know which varient we sold and how many were sold. Similarly I can sell 10 pads for $180 and again it would give a different answer of the stock remaining.

The question reads, 'Amount spend on the store on writing pads it had in stock at end of the month'

And dont think we can determine an exact number here. I dont think we can assume selling prices. Am I thinking wrong here?

neelgandham wrote:
But isn't he asking about

'total amount spent by the store on the writing pads it had in stock at the end of last month? '

How does the number of pads matter, if you know the their worth ?

I am partly convinced, but can you find the flaw in the solution provided by me above ?

You assume cost price = selling price. Simple.

Well again your answer would be correct if that assumption was true. If the OA is C, then I guess we would be safe to assume.
But then why would you want to sell something without profit. I think we should discuss after knowing the OA.

neelgandham wrote:
I am partly convinced, but can you find the flaw in the solution provided by me above ?

shankar.ashwin wrote:I think it should be E

Statement 2 says sale is $180, it is possible they sell 1 writing pad for $180 (or) 'n' number of pads for $180. Since we dont know many many they sell, dont think we can determine the value of remaining stock. (again depends on how many they sold)

I agree.

Statement 1 tells us that the store added stock and at a different cost per notepad. So from statement 1 we can figure the total cost of the stock if zero note pads were sold.

Statement 2 tells us the revenue from sales but we cannot determine the number of pads sold; nor does it tell us the number of pads sold.

Since the question is asking the value of the remaining stock based on the number of remaining pads we do not have enough information to answer the question.

I'm confused. Isn't the question asking how much the store spent on writing pads? So, they made an inital purchase of 250 writing pads, which had cost the store $0.75 each plus an additional purchase (the only other one). So they want the total of the two purchases.

A) Gives the number of additional writing pads purchased as well as the cost of each.
Sufficient

B) Revenue has nothing to do with the purchase price
Insufficient

I choose A

Am I reading this incorrectly?

st(1) reads & translates into 150*0.8 + 250*0.75 - sales (only cost part) = balance at the close of last month Not Sufficient, as we don't know about sales
st(2) falls into sales revenue=180 and purchases + 250*0.75 - sales (cost part)= balance at the close of last month Not Sufficient ...

clearly now we have to assume existence of sales and purchases as the required installments for completing the closing balance. This question is ambiguous in its entirety and has GMAT unlike style of imprecise wording.

combined st(1&2): we have sales'revenue and purchase information, but don'w know about cost part of sales and could not deduce 150*0.8 + 250*0.75 - 180*Gross margin = required answer. Not Sufficient

e but not standard GMAT q.

siddhans wrote:At the beginning of last month, a stationery store had in stock 250 writing pads, which had cost the store $0.75 each. During the same month, the store made only one purchase of writing pads. What was the total amount spent by the store on the writing pads it had in stock at the end of last month?

(1) Last month the store purchased 150 writing pads for $0.80 each.

(2) Last month the total revenue from the sale of writing pads was $180.


OA after discussion