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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
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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fr743 Junior | Next Rank: 30 Posts Default Avatar
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22 Dec 2010
Posted:
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Post Wed Jul 13, 2011 9:12 am
Can someone else elaborate this problem?

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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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fr743 Junior | Next Rank: 30 Posts Default Avatar
Joined
22 Dec 2010
Posted:
18 messages
Post Wed Jul 13, 2011 9:12 am
Can someone else elaborate this problem?

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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.

_________________
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.
For more information, please email me at GMATGuruNY@gmail.com.

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Thanked by: alanforde800Maximus
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x2suresh Master | Next Rank: 500 Posts Default Avatar
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258 messages
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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..

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

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