At the beginning of last year, a car dealership had 150 cars in stock, which the dealership had purchased for $20,000 each. During the same year, the dealership made only one purchase of cars. What is the total amount spent by the dealership on the cars it had in stock at the end of last year?
1) Last year the dealership purchased 50 cars for $18,000 each.
2) Last year the total revenue from the sale of cars was $180,000.
Question stem: 150 cars @ $20000 each
only 1 purchase of cars was made last year.
this was someones explanation to it....
The way I interpreted this is 150 cars in stock means these could be bought over number of years and were not sold.
Therefore we need to find how many cars after the purchase we actually sold.
the way this problem worked out in my head was I need to find out how much the dealership spent. So why do I need to find out how much the dealership sold?
Statement I
50 cars @ $18000 each. cost = $18000*50
We dont know how many cars are sold during last year.
Insufficient.
Statement II
Total revenue = 180,000
We dont how many cars were purchased last year. Insufficient.
Combining I & II
total cost = 150*20000 + 18000*50 = 30,00,000 + 9,00,000 = 39,00,000
revenue = 180,000
Since we dont know how many cars were actually sold at what price, we cannot find the no. of unsold cars or cars currently left in stock to calculate the total cost. Insufficient.
Hence E.
1) Last year the dealership purchased 50 cars for $18,000 each.
2) Last year the total revenue from the sale of cars was $180,000.
Question stem: 150 cars @ $20000 each
only 1 purchase of cars was made last year.
this was someones explanation to it....
The way I interpreted this is 150 cars in stock means these could be bought over number of years and were not sold.
Therefore we need to find how many cars after the purchase we actually sold.
the way this problem worked out in my head was I need to find out how much the dealership spent. So why do I need to find out how much the dealership sold?
Statement I
50 cars @ $18000 each. cost = $18000*50
We dont know how many cars are sold during last year.
Insufficient.
Statement II
Total revenue = 180,000
We dont how many cars were purchased last year. Insufficient.
Combining I & II
total cost = 150*20000 + 18000*50 = 30,00,000 + 9,00,000 = 39,00,000
revenue = 180,000
Since we dont know how many cars were actually sold at what price, we cannot find the no. of unsold cars or cars currently left in stock to calculate the total cost. Insufficient.
Hence E.
