An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?
(1) 20 cars were sold for $20,000
(2) 30 cars were marked up 30%
OA E
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An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the
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Each car is sold at either $20000 or $30000.
Total cars sold = 50
Target question => what is the total profit of the dealer?
Profit = selling price - cost price
Total profit = profit made from the sale of cars sold $20000 + profit made from the sale of cars sold $30000
Statement 1: 20 cars were sold for $20,000
This means (50-20=30) cars were sold for $30000 but this does not tell us about the cost price. so, the profit cannot be evaluated. Therefore, statement 1 is NOT SUFFICIENT.
Statement 2: 30 cars were marked up 30%
This means (50-30=20) cars were sold for %20 of the cost price but then the price is unknown. So, the profit cannot be evaluated. Therefore, statement 2 is NOT SUFFICIENT.
Combining both statements together:
It is possible to have 30 cars marked up at 30% and sold for $30000, and 20 cars marked up 20% and sold for $20000.
OR
10 cars marked up at 30% and sold for $30000; 20 cars marked up 30% and sold for $20000 and 20 cars marked up at 20% and sold for $30000. Thus, this will result in indefinite total profit. Therefore, both statements combined are not SUFFICIENT.
Answer = option E
Total cars sold = 50
Target question => what is the total profit of the dealer?
Profit = selling price - cost price
Total profit = profit made from the sale of cars sold $20000 + profit made from the sale of cars sold $30000
Statement 1: 20 cars were sold for $20,000
This means (50-20=30) cars were sold for $30000 but this does not tell us about the cost price. so, the profit cannot be evaluated. Therefore, statement 1 is NOT SUFFICIENT.
Statement 2: 30 cars were marked up 30%
This means (50-30=20) cars were sold for %20 of the cost price but then the price is unknown. So, the profit cannot be evaluated. Therefore, statement 2 is NOT SUFFICIENT.
Combining both statements together:
It is possible to have 30 cars marked up at 30% and sold for $30000, and 20 cars marked up 20% and sold for $20000.
OR
10 cars marked up at 30% and sold for $30000; 20 cars marked up 30% and sold for $20000 and 20 cars marked up at 20% and sold for $30000. Thus, this will result in indefinite total profit. Therefore, both statements combined are not SUFFICIENT.
Answer = option E
