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If the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?

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If the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?

by Gmat_mission » Sun Apr 11, 2021 2:49 am

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If the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?

(1) The cost to the dealer was equal to \(80\) percent of the list price.
(2) The car was sold for \(\$11,070,\) which was \(12.5\) percent more than the cost to the dealer.

Answer: D

Source: Official Guide
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Source: — Data Sufficiency |

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Re: If the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?

by Brent@GMATPrepNow » Sat May 15, 2021 7:20 am

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Gmat_mission wrote: ↑
Sun Apr 11, 2021 2:49 am
 If the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?

(1) The cost to the dealer was equal to \(80\) percent of the list price.
(2) The car was sold for \(\$11,070,\) which was \(12.5\) percent more than the cost to the dealer.

Answer: D

Source: Official Guide
Let x = the cost of the car to the dealer

Target question: What is the value of x?

Statement 1: The cost to the dealer was equal to 80 percent of the list price.
Rewrite as: cost to the dealer = 80% of list price
Substitute to get: x = 80% of $12,300
Since we COULD evaluate 80% of $12,300, we COULD find the value of x, which means we could answer the target question with certainty (but we'd never waste our time doing so on that day!)
Statement 1 is SUFFICIENT

Statement 2: The car was sold for $11,070, which was 12.5 percent more than the cost to the dealer
We can write: $11,070 = 12.5% more than the cost to the dealer
In other words: $11,070 = 12.5% more than x
In other words: $11,070 = x + (12.5% of x)
In other words: $11,070 = x + (0.125x)
In other words: $11,070 = 1.125x
Solve: x = 11,070/1.125
Since we can answer the target question with certainty, statement 2 is SUFFICIENT

Answer: D

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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