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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## A store purchased 20 coats that each cost an equal amount ##### This topic has 2 expert replies and 0 member replies ### Top Member ## A store purchased 20 coats that each cost an equal amount ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult A store purchased 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 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$2,400

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

OA B

Source: GMAT Prep

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BTGmoderatorDC wrote:
A store purchased 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 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 $2,400 (2) If the selling price per coat had been$2 more, the store’s gross profit on the 20 coats would have been $440 Statement 1: If the selling price per coat had been twice as much , the store’s gross profit on the 20 coats would have been$2,400
When the selling price per coat is doubled, the resulting profit per coat = (total profit)/(number of coats) = 2400/20 = 120.

Case 1: Double the selling price = 130, implying that the cost per coat = 130-120 = 10 and that the actual selling price = 130/2 = 65
In this case, the actual profit per coat = (actual selling price) - (cost) = 65-10 = 55

Case 2: Double the selling price = 140, implying that the cost per coat 140-120 = 20 and that the actual selling price = 140/2 = 70
In this case, the actual profit per coat = (actual selling price) - (cost) = 70-20 = 50

Since the profit per coat can be different values, INSUFFICIENT.

Statement 2: If the selling price per coat had been $2 more, the store’s gross profit on the 20 coats would have been$440
When the selling price is increased by $2, the resulting profit per coat = (total profit)/(number of coats) = 440/20 = 22. Since the actual selling price is$2 less, the actual profit per coat = 22-2 = 20.
Since each of the 20 coats yields an actual profit of $20, the total gross profit for all 20 coats = 20*20 = 400. SUFFICIENT. The correct answer is B. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. ### GMAT/MBA Expert GMAT Instructor Joined 22 Aug 2016 Posted: 2019 messages Followed by: 31 members Upvotes: 470 BTGmoderatorDC wrote: A store purchased 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 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$2,400

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

OA B

Source: GMAT Prep
Say the selling price of each coat is %y and the cost price is $x. Thus, gross profit on 20 coats = 20(y - x). We have to get the value of (y - x). Let's take 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$2,400.

=> 20(2y - x) = 2400

2y - x = 120

Can't get the value of (y - x). Insufficient.

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

=> 20[(y +2) - x] = 440

(y +2) - x = 22

y - x = 20

Thus, gross profit on 20 coats = 20(y - x) = 20*20 = $400. Sufficient. The correct answer: B Hope this helps! -Jay _________________ Manhattan Review GMAT Prep Locations: Manhattan Review Bangalore | Hyderabad GMAT Prep | Bangalore GMAT Courses | Mehdipatnam GRE Prep | and many more... Schedule your free consultation with an experienced GMAT Prep Advisor! Click here. • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • FREE GMAT Exam Know how you'd score today for$0

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