A wholesale dealer purchased two coats at the same price. One was sold

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Mikrislac: Senior | Next Rank: 100 Posts; Posts: 38; Joined: Sun Jul 19, 2020 3:22 am

by Mikrislac » Sun Aug 02, 2020 4:03 pm

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A wholesale dealer purchased two coats at the same price. One was sold at a profit of 20% and the other was sold at a price which was $1520 less than the price at which the first one was sold. If the overall profit earned by selling both the coats was 1%, what was the cost price of one coat?

A. $3600

B. $4000

C. $4800

D. $5000

E. $5200

Source: Beat The GMAT — Problem Solving | Sun Aug 02, 2020 4:03 pm

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Jay@ManhattanReview: GMAT Instructor; Posts: 3008; Joined: Mon Aug 22, 2016 6:19 amFollowed by: 34 members; Location: Grand Central / New York; Thanked: 470 times

Re: A wholesale dealer purchased two coats at the same price. One was sold

by Jay@ManhattanReview » Sun Aug 02, 2020 10:16 pm

Mikrislac wrote: ↑
Sun Aug 02, 2020 4:03 pm
A wholesale dealer purchased two coats at the same price. One was sold at a profit of 20% and the other was sold at a price which was $1520 less than the price at which the first one was sold. If the overall profit earned by selling both the coats was 1%, what was the cost price of one coat?

A. $3600

B. $4000

C. $4800

D. $5000

E. $5200

Say the cost price of each coat was $x. So, cost price of both coats = $2x

Thus, the sale price of the first coat = 1.2x;
Thus, the sale price of the second coat = 12.x – 1,520

Sale price of both coats = 2.4x – 1,520

Percent profit = [{(2.4x – 1,520) – 2x}/2x]100% = 1%

Upon solving, we get x = $4,000

Correct answer: B

Hope this helps!

-Jay
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