A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a...

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Sun May 24, 2020 9:55 am

Official Guide

A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75
B. $100
C. $125
D. $150
E. $175

OA E

Cost price of both bicycles = 250 + 375 = $625
Gross profit = $250 (given)
Thus, Selling price of both bicycles = 625 + 250 = $875

Say selling price of the other bicycle = $x.

Thus, we have 450 + x = 875 => x = $425

Case 1: Say the first bicycle ($250) was sold for $425; thus, gross profit = 425 – 250 = $175 (Correct answer E).

Case 2: Say the first bicycle ($375) was sold for $425; thus, gross profit = 425 – 375 = $50 (Also Correct, but not given).

The correct answer: E

Hope this helps!

-Jay
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AAPL wrote: ↑

Sun May 24, 2020 9:55 am

Official Guide

A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75
B. $100
C. $125
D. $150
E. $175

OA E

Solution:

We can assume that the $375 bicycle is sold for $450. So the profit on this bicycle is 450 - 375 = $75. Since the total profit is $250, the other bicycle must be sold for a profit of 250 - 75 = $175.

Alternate Solution:

The total cost of the bicycles to the store is 250 + 375 = $625.

Since the total profit is $250, the sum of the sale prices of the bicycles is 625 + 250 = $875.

Since one of the bicycles sold for $450, the other sold for 875 - 450 = $425.

If the bike costing $250 is sold for $425, the profit is 425 - 250 = $175.

If the bike costing $375 is sold for $425, the profit is 425 - 375 = $50.

$175 is among the answer choices; thus, the answer is E.

Answer: E