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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 storeâ€™s gross profit on 20 coats? (1) If the selling price per coat had been twice as much , the storeâ€™s gross profit on the 20 coats would have been$2,400

(2) If the selling price per coat had been $2 more, the storeâ€™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 storeâ€™s gross profit on 20 coats?

(1) If the selling price per coat had been twice as much , the storeâ€™s gross profit on the 20 coats would have been $2,400 (2) If the selling price per coat had been$2 more, the storeâ€™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 storeâ€™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 storeâ€™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 Top Reply 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 storeâ€™s gross profit on 20 coats? (1) If the selling price per coat had been twice as much , the storeâ€™s gross profit on the 20 coats would have been$2,400

(2) If the selling price per coat had been $2 more, the storeâ€™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 storeâ€™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 storeâ€™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. • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

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