profit and loss

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profit and loss

by vaibhav101 » Thu May 31, 2018 7:45 am

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A store purchases 20 coats that each cost an equal amount and then sold each of the 20 coats at an equal price , what was the store's gross profit on the 20 coats?

1) if the selling price per coat had been twice as much, the store's gross profit on he 20 coats would have been 2400
2) if the store selling price per coat had been $2 more, the store's gross profit on the 20 coats would have been 440
Source: — Data Sufficiency |

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by Jay@ManhattanReview » Thu May 31, 2018 10:02 pm

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vaibhav101 wrote:A store purchases 20 coats that each cost an equal amount and then sold each of the 20 coats at an equal price , what was the store's gross profit on the 20 coats?

1) If the selling price per coat had been twice as much, the store's gross profit on the 20 coats would have been 2400
2) If the store selling price per coat had been $2 more, the store's gross profit on the 20 coats would have been 440
Say the cost price of each coat is $x and the selling price of each coat is $y.

The store's gross profit on the 20 coats = 20(y - x)

Let's see each statement one by one.

1) If the selling price per coat had been twice as much, the store's gross profit on the 20 coats would have been 2400.

=> 20(2y - x) = 2400 => 2y - x = 1200. Can't get the value of 20(y - x). Insufficient.

2) If the store selling price per coat had been $2 more, the store's gross profit on the 20 coats would have been 440.

=> Additional profit on 20 coats = 2*20 = $40.

Thus, actual profit on 20 coats = 440 - 40 = $400. Sufficient.

The correct answer: B

Hope this helps!

-Jay
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