M7MBA wrote: ↑

Fri Feb 19, 2021 8:44 am

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

Answer: E

Source: Official Guide

Solution:

If the store sold the $250 bicycle for $450, then the gross profit of this bicycle is $200. Since the total gross profit of the two bicycles is $250, the gross profit of the other bicycle is $50. However, $50 is not in the answer choices.

If the store sold the $375 bicycle for $450, then the gross profit of this bicycle is $75. Since the total gross profit of the two bicycles is $250, the gross profit of the other bicycle is $175. Since $175 is in the answer choices, it’s the correct answer.

Answer: E