The selling price of an article is equal to the cost of the article plus the markup. The markup on a certain television set is what percent of the selling price?
(1) The markup on the television set is 25 percent of the cost.
(2) The selling price of the television set is $250.
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.
IMO, it is C. But OA says it is A. Please help to explain with proper steps.
Thanks.
selling price of article
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- codesnooker
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- codesnooker
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Dear Maria,
Let me try to explain the method that I have followed.
According to you,
Selling price = M + Cost (CORRECT)
By statement 1,
M = 25% of the cost.
SP = (Cost/4) + Cost
INSUFFICIENT, as it is a linear equation of two unknown variables.
According to 2nd statement:
SP = $250
and SP = M + Cost (as per our forumula)
Therefore, M + Cost = 250
Again INSUFFICIENT as it is a linear equation of two unknown variables.
Now lets take both statements together.
By statement 1,
SP = (Cost/4) + Cost
and By Statement 2, SP = 250
therefore, 250 = (Cost/4) + Cost
Now its is a linear equation of single unknown variable, hence can be solvable. Therefore SUFFICIENT.
Therefore, correct answer should be (C).
Let me try to explain the method that I have followed.
According to you,
Selling price = M + Cost (CORRECT)
By statement 1,
M = 25% of the cost.
SP = (Cost/4) + Cost
INSUFFICIENT, as it is a linear equation of two unknown variables.
According to 2nd statement:
SP = $250
and SP = M + Cost (as per our forumula)
Therefore, M + Cost = 250
Again INSUFFICIENT as it is a linear equation of two unknown variables.
Now lets take both statements together.
By statement 1,
SP = (Cost/4) + Cost
and By Statement 2, SP = 250
therefore, 250 = (Cost/4) + Cost
Now its is a linear equation of single unknown variable, hence can be solvable. Therefore SUFFICIENT.
Therefore, correct answer should be (C).
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I'm definitely NOT an expert, but it's A. We're looking for a percentage/ratio/proportion between the selling price (P) and mark-up (M). In the stem we're given Price= Cost + Mark-Up (P= C + M)devp wrote:The answer A is correct. The problem with Codesnooker's explanation is that M was replaced by C rather than C replaced by M.
Hope that helps.
1. M= .25C
Plugging it into the what we were given:
P= C+.25C
P=1.25C and we established that M=.25C. We can stop there because we have a proportion between P & M: P:M= .25:1.25 = 20%
2. Nothing there.
- breaking bad
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if we put in numbers it becomes easy !! and A it is.
cost : 100 markup : 25% : 25 sp: 125
now as per the question : 25= x/100*125 =20%
cost : 100 markup : 25% : 25 sp: 125
now as per the question : 25= x/100*125 =20%
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- Scott@TargetTestPrep
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We can let c = cost of the article and m = the markup and create the expression:gibran wrote:The selling price of an article is equal to the cost of the article plus the markup. The markup on a certain television set is what percent of the selling price?
(1) The markup on the television set is 25 percent of the cost.
(2) The selling price of the television set is $250.
m/(c + m) x 100 = ?
Statement One Alone:
The markup on the television set is 25 percent of the cost.
From statement one, we have m = 0.25c, and thus our expression now is:
m/(c + m) x 100 = ?
0.25c/(c + 0.25c) x 100 = ?
0.25c/(1.25c) x 100 = ?
0.25/1.25 x 100 = 20%
Statement one alone is sufficient to answer the question.
Statement Two Alone:
The selling price of the television set is $250.
With the information in statement two we can create the following equation:
c + m = 250
With the equation c + m = 250, we can simplify m/(c + m) x 100 as m/250 x 100. However, since we don't know the value of m, we can't determine the value of m/(c + m) x 100. Thus, statement two alone is not sufficient to answer the question.
Answer: A
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