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

Redeem

An auto dealer sells each car at either $20,000 or $30,000.

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 2599
Joined: Sun Oct 29, 2017 2:08 pm
Followed by:2 members

An auto dealer sells each car at either $20,000 or $30,000.

by AAPL » Fri May 03, 2019 3:56 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

e-GMAT

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 at 30%.

OA E
Top
Source: — Data Sufficiency |
Legendary Member
Posts: 2214
Joined: Fri Mar 02, 2018 2:22 pm
Followed by:5 members

by deloitte247 » Sat May 11, 2019 9:45 pm

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

Each car is sold at either $20000 or $30000
Total car sold = 50

Question=> What is the total profit of the dealer?

Statement 1: 20 cars were sold for $20000.
There is no information about the cost price. Hence, statement 1 is NOT SUFFICIENT

Statement 2: 30 cars were marked up at 30% .i.e remaining 20 were marked up at 20% of cost price but the value of cost price is unknown, hence, Statement 2 is NOT SUFFICIENT

So, combining the two statement together.
20 cars sold at $20000 and 30 cars were marked up at 30% or remaining 20 were marked up at 20% of the cost price.
Let
$$CP_x=cost\ price\ of\ 20\ cars$$
$$CP_y=\cos t\ price\ of\ 30\ cars$$
Total selling price = 20 * 20000 = $400,000
$$1.2CP_x=400,000$$
$$CP_x=\frac{400,000}{1.2}=$333,333$$

Similarly for 30 cars,
Total selling price = 30 * 30,000 = $900,000
$$1.3CP_y=900,000$$
$$CP_y=\frac{900,000}{1.3}=$692,307$$

For 20 cars profit = selling price - cost price
=400,000 - 333,333 =$366,667

For 30 cars profit = 900,000 - 692,307 = $207,693

The total profit of dealer = 366,667 + 207,693 = $574,360
Hence, Both statement are SUFFICIENT.... Thus, the answer is Option C
Top
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Mon May 13, 2019 2:30 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

AAPL wrote:e-GMAT

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 at 30%.
Statements combined:
Case 1:
30 $30,000 cars are marked up 30%'
20 $20,000 cars are marked up 20%

Case 2:
10 $30,000 cars are marked up 30%
20 $20,000 cars are marked up 30%
20 $30,000 cars are marked up 20%

In Case 1, the more expensive $30,000 cars are all sold at the higher profit margin -- 30% -- with the result that the total profit in Case 1 will be greater than the total profit in Case 2.
Since the total profit can be different values, the two statements combined are INSUFFICIENT.

The correct answer is E.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top
Post new topic Post Reply
• Page 1 of 1