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Gross Profit

This topic has 1 expert reply and 5 member replies
beater Master | Next Rank: 500 Posts Default Avatar
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Gross Profit

Post Wed Feb 18, 2009 11:31 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    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

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    x2suresh Master | Next Rank: 500 Posts Default Avatar
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    Post Wed Feb 18, 2009 11:41 am
    beater wrote:
    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
    gp = y-x

    % gp to orignal cost = (y-x)/x *100= y/x-1*100

    (1) not sufficient

    (2)%= y/x-1*100 = (5/4-1)*100 = 25%
    sufficient

    B

    Thanked by: beater
    beater Master | Next Rank: 500 Posts Default Avatar
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    Post Wed Feb 18, 2009 11:46 am
    Stat (2) provides the ratio of X to Y but not the actual values for X and Y, correct?

    kheba Junior | Next Rank: 30 Posts Default Avatar
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    Post Wed Feb 18, 2009 12:00 pm
    Answer B. Equation should be ((y-x)/x)*100

    x2suresh Master | Next Rank: 500 Posts Default Avatar
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    Post 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..

    fr743 Junior | Next Rank: 30 Posts Default Avatar
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    Post Wed Jul 13, 2011 9:12 am
    Can someone else elaborate this problem?

    Post 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 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
    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.

    The correct answer is B.

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    Thanked by: alanforde800Maximus
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