BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

Articles

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Legendary Member
Posts: 643
Joined: Wed Aug 14, 2013 4:27 amFollowed by: 7 members
Thanked: 48 times
by vinay1983 » Mon Sep 30, 2013 6:46 am
A merchant buys a number of articles for $25 each. What is the percentage profit made by the merchant by selling these articles?

1. The merchant sold all articles and made $2000
2. The merchant sold 40% of the articles at $40 each and the remaining at $20 each.
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Data Sufficiency |
Newbie | Next Rank: 10 Posts
Posts: 8
Joined: Mon Jan 02, 2012 6:20 am
Thanked: 2 times

by s.vishnu » Mon Sep 30, 2013 8:33 am
Hi Vinay,

Statement 1 is not sufficient as the amount he spent or number of articles bought is not given.

Statement 2:
the average selling price of the article is 0.4*40+0.6*20)/(0.4+0.6)=$28.The cost price was $25 hence the percentage profit is (28-25/25)*100

B sufficient.

Kindly correct if wrong.[/quote]
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Master | Next Rank: 500 Posts
Posts: 298
Joined: Sun Jun 03, 2012 6:42 amFollowed by: 7 members
Location: New delhi
Thanked: 10 times
GMAT Score:590

by varun289 » Mon Sep 30, 2013 8:41 am
IMO - B


b give percent details for each ,

ex-

lets test for 10 , 4 will sold in 40 & 6 at 20 , so we can get % gain or loss
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Junior | Next Rank: 30 Posts
Posts: 19
Joined: Wed Aug 30, 2017 10:04 am

by ahmedshafea » Wed Aug 30, 2017 12:33 pm
Is the above reply a correct solution? If not could one explain the steps please
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY

GMAT/MBA Expert

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

by Jay@ManhattanReview » Wed Aug 30, 2017 8:46 pm
vinay1983 wrote:A merchant buys a number of articles for $25 each. What is the percentage profit made by the merchant by selling these articles?

1. The merchant sold all articles and made $2000
2. The merchant sold 40% of the articles at $40 each and the remaining at $20 each.
We are given cost price of an article = $25.

We have to find out the percentage profit made on selling the articles. We can compute it in two ways.

1. Percentage profit = [(Total sale value - Total cost) / (Total cost)] * 100%

or,

2. Percentage profit = [(Selling price of one article - Cost price of one article) / (Cost price of one article)] * 100%

So, if we know the selling price an article, we can get the answer. Moreover, we would not need the number of articles sold.

Statement 1: The merchant sold all articles and made $2000.

To use the 1st formula, though we know Total sale value = $2000, we do not know Total cost. Total cost = Cost price of an article * Number of articles purchased = 25*Number of articles purchased.

Since we do not know that value of 'number of articles purchased,' we cannot get the answer. Insufficient.

Statement 2: The merchant sold 40% of the articles at $40 each and the remaining at $20 each.

Say there are 100 articles, thus, 40% of 100 = 40 were sold @ $40 a piece and the remaining 60 were sold @ $20 a piece.

Thus, the average selling price of an article = (Total sale value) / (Total number of articles)

=> Av. selling price = (40*40 + 20*60) / 100 = (1600 + 1200) / 100 = $28.

So, we got the selling price of an article; thus, we can apply the 2nd formulae.

Percentage profit = [(Selling price of one article - Cost price of one article) / (Cost price of one article)] * 100%

Percentage profit = [(28 - 25) / (25)] * 100% = [3/25]*100% = 12%. Sufficient.

The correct answer: B

Hope this helps!

Download free ebook: Manhattan Review GMAT Quantitative Question Bank Guide

-Jay
_________________
Manhattan Review GMAT Prep

Locations: New York | Jakarta | Nanjing | Berlin | and many more...

Schedule your free consultation with an experienced GMAT Prep Advisor! Click here.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1