• Free Practice Test & Review
How would you score if you took the GMAT

Available with Beat the GMAT members only code

• Free Veritas GMAT Class
Experience Lesson 1 Live Free

Available with Beat the GMAT members only code

• 5 Day FREE Trial
Study Smarter, Not Harder

Available with Beat the GMAT members only code

• Free Trial & Practice Exam
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• Award-winning private GMAT tutoring
Register now and save up to \$200

Available with Beat the GMAT members only code

• Get 300+ Practice Questions

Available with Beat the GMAT members only code

• 5-Day Free Trial
5-day free, full-access trial TTP Quant

Available with Beat the GMAT members only code

• Magoosh
Study with Magoosh GMAT prep

Available with Beat the GMAT members only code

• 1 Hour Free
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

Gross Profit

This topic has 1 expert reply and 5 member replies
beater Master | Next Rank: 500 Posts
Joined
22 Apr 2008
Posted:
301 messages
2

Gross Profit

Wed Feb 18, 2009 11:31 am
A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The store's gross profit from the item was what percent of its cost for the item?
(1) y - x = 20
2) y / x = 5 / 4

Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
fr743 Junior | Next Rank: 30 Posts
Joined
22 Dec 2010
Posted:
18 messages
Wed Jul 13, 2011 9:12 am
Can someone else elaborate this problem?

GMAT/MBA Expert

GMATGuruNY GMAT Instructor
Joined
25 May 2010
Posted:
13598 messages
Followed by:
1796 members
13060
GMAT Score:
790
Wed Jul 13, 2011 12:32 pm
beater wrote:
A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The storeï¿½s gross profit from the item was what percent of its cost for the item?
(1) y ï¿½ x = 20
2) y / x = 5 / 4
Profit = y-x
Profit/Cost = (y-x)/x = y/x - x/x = y/x - 1.
Thus, to determine profit/cost, we need to know the value of y/x.

Question rephrased: what is y/x?

Statement 1: y-x = 20.
No way to determine the value of y/x.
Insufficient.

Statement 2: y/x = 5/4.
Sufficient.

_________________
Mitch Hunt
GMAT Private Tutor
GMATGuruNY@gmail.com
If you find one of my posts helpful, please take a moment to click on the "Thank" icon.
Available for tutoring in NYC and long-distance.

Thanked by: alanforde800Maximus
Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.
fr743 Junior | Next Rank: 30 Posts
Joined
22 Dec 2010
Posted:
18 messages
Wed Jul 13, 2011 9:12 am
Can someone else elaborate this problem?

GMAT/MBA Expert

GMATGuruNY GMAT Instructor
Joined
25 May 2010
Posted:
13598 messages
Followed by:
1796 members
13060
GMAT Score:
790
Wed Jul 13, 2011 12:32 pm
beater wrote:
A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The storeï¿½s gross profit from the item was what percent of its cost for the item?
(1) y ï¿½ x = 20
2) y / x = 5 / 4
Profit = y-x
Profit/Cost = (y-x)/x = y/x - x/x = y/x - 1.
Thus, to determine profit/cost, we need to know the value of y/x.

Question rephrased: what is y/x?

Statement 1: y-x = 20.
No way to determine the value of y/x.
Insufficient.

Statement 2: y/x = 5/4.
Sufficient.

_________________
Mitch Hunt
GMAT Private Tutor
GMATGuruNY@gmail.com
If you find one of my posts helpful, please take a moment to click on the "Thank" icon.
Available for tutoring in NYC and long-distance.

Thanked by: alanforde800Maximus
Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.
x2suresh Master | Next Rank: 500 Posts
Joined
07 Aug 2008
Posted:
258 messages
16
Wed Feb 18, 2009 12:14 pm
beater wrote:
Stat (2) provides the ratio of X to Y but not the actual values for X and Y, correct?
question is also asking for the % not actual value..

kheba Junior | Next Rank: 30 Posts
Joined
10 Aug 2008
Posted:
22 messages
Wed Feb 18, 2009 12:00 pm
Answer B. Equation should be ((y-x)/x)*100

Best Conversation Starters

1 lheiannie07 120 topics
2 LUANDATO 62 topics
3 swerve 62 topics
4 ardz24 61 topics
5 AAPL 57 topics
See More Top Beat The GMAT Members...

Most Active Experts

1 Scott@TargetTestPrep

Target Test Prep

174 posts
2 Brent@GMATPrepNow

GMAT Prep Now Teacher

173 posts
3 Rich.C@EMPOWERgma...

EMPOWERgmat

131 posts
4 Jeff@TargetTestPrep

Target Test Prep

130 posts
5 EconomistGMATTutor

The Economist GMAT Tutor

130 posts
See More Top Beat The GMAT Experts