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1 q-22

by stubbornp » Sun Oct 12, 2008 10:50 am
22. A jewelry dealer initially offered a bracelet for sale at an asking price that would give a profit to the dealer of 40 percent of the original cost. What was the original cost of the bracelet?
(1) After reducing this asking price by 10 percent, the jewelry dealer sold the bracelet at a profit of $403.
(2) The jewelry dealer sold the bracelet for $1,953.
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Re: 1 q-22

by parallel_chase » Sun Oct 12, 2008 11:11 am
stubbornp wrote:22. A jewelry dealer initially offered a bracelet for sale at an asking price that would give a profit to the dealer of 40 percent of the original cost. What was the original cost of the bracelet?
(1) After reducing this asking price by 10 percent, the jewelry dealer sold the bracelet at a profit of $403.
(2) The jewelry dealer sold the bracelet for $1,953.
question stem: SP*(100-x)/100 - CP = profit or 40% CP

Statement I
.9*SP - CP = 403
profit = 40%CP
403 = 40%CP
We can easily find the CP. Sufficient.

Statement II
SP = 1953, we dont know the CP or the profit. Insufficient.

Hence A.

OA?
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by cramya » Sun Oct 12, 2008 11:17 am
Why is it not D)

Given asking proce or sale price is costprice(cp) + 40% of cp

So with II) we can set up an equation to find cp.

What am I missing here?
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by parallel_chase » Sun Oct 12, 2008 11:40 am
cramya wrote:Why is it not D)

Given asking proce or sale price is costprice(cp) + 40% of cp

So with II) we can set up an equation to find cp.

What am I missing here?
Even I thought D could be the answer but the question stem "dealer initially offered a bracelet for sale"

Now the question stem equation is valid for the initial discount only, we dont know at what discount rate the jewelery was sold. Thats why I rejected the statement II. I could be wrong as well.

Do you agree with my reasoning?

Whats the OA? More importantly whats the source? I feel the question's language is full of ambiguity.
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by stubbornp » Sun Oct 12, 2008 11:46 am
answer is A...source 1000 ds
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by cramya » Sun Oct 12, 2008 11:46 am
Wow thats really a subtle difference. This is truning out to be CR question instead of a DS question :D

You could very well be right!
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