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selling price of article

This topic has 10 member replies
gibran Senior | Next Rank: 100 Posts Default Avatar
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selling price of article

Post Thu May 15, 2008 9:48 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    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.

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    codesnooker Legendary Member
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    Post Thu May 15, 2008 10:07 am
    According to me also, answer should be (C).
    What is the source of the question?

    maria Senior | Next Rank: 100 Posts Default Avatar
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    Post Thu May 15, 2008 10:26 am
    Selling price = M + Cost
    Mk = 25% of the cost.
    we do not know the cost.

    the answer can be E

    maria Senior | Next Rank: 100 Posts Default Avatar
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    Post Thu May 15, 2008 11:31 am
    any one has an appropriate explanation?

    codesnooker Legendary Member
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    Post Thu May 15, 2008 11:51 am
    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).

    maria Senior | Next Rank: 100 Posts Default Avatar
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    Post Thu May 15, 2008 12:18 pm
    Codesnooker, I got it. Thank you. Very Happy

    arorag Master | Next Rank: 500 Posts Default Avatar
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    Post Thu May 15, 2008 5:38 pm
    Guys OA is correct it has to be A.
    Let x is cost of tv, markup will be 0.25 x
    S.P.= 1.25 x
    required info= .25 x/1.25x(100)= 20 %

    maria Senior | Next Rank: 100 Posts Default Avatar
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    Post Thu May 15, 2008 8:06 pm
    Hmmmm. it appears to have different answers. Any expert helps us to confirm the correct answer to this question?

    devp Junior | Next Rank: 30 Posts Default Avatar
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    Post Fri May 16, 2008 7:00 am
    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.

    mim3 Senior | Next Rank: 100 Posts Default Avatar
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    Post Fri May 16, 2008 9:24 am
    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.
    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)

    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 Newbie | Next Rank: 10 Posts
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    Post Tue Nov 12, 2013 12:56 pm
    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%

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