Akansha wrote:Martha bought an armchair and a coffee table at an auction and sold both items at her store. Her gross profit from the purchase and sale of the armchair was what percent greater than her gross profit from the purchase and sale of the coffee table?
1) Martha paid 10 percent more for her armchair than for the coffee table.
2) Martha sold the armchair for 20 percent more than she sold the coffee table.
Can anyone explain why the answer for this question is E and not C?
The following scenarios satisfy both statements:
Let amount paid for table = 10.
Then amount paid for armchair = (1.1)*10 = 11.
Case 1:
Let selling price of table = 20.
Then selling price of armchair = (1.2)*20 = 24.
(Armchair profit)/(Table profit) = (24-11)/(20-10) = 13/10.
Case 2:
Let selling price of table = 30.
Then selling price of armchair = (1.2)*30 = 36.
(Armchair profit)/(Table profit) = (36-11)/(30-10) = 25/20.
Since 13/10 ≠25/20, the ratio of the two profits cannot be determined.
The correct answer is
E.
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