GMAT Official Guide 2019 A bicycle store purchased two

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pmFollowed by: 23 members

by BTGmoderatorDC » Mon Jul 02, 2018 9:13 pm

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A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75

B. $100

C. $125

D. $150

E. $175

Source: Beat The GMAT — Problem Solving | Mon Jul 02, 2018 9:13 pm

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Jay@ManhattanReview: 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 » Mon Jul 02, 2018 9:32 pm

BTGmoderatorDC wrote:A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75

B. $100

C. $125

D. $150

E. $175

Total cost of both the bicycles = 250 + 375 = 625
Thus, the total revenue from both the bicycles = Total cost of both the bicycles + Gross Profit = 625 + 250 = 825

We are given that the store sold one of the bicycles for $450, thus, the store must have sold another bicycle for 825 - 450 = 425

Gross profit on the sale of the other bicycle = 425 - Cost of the other bicycle

We do not know the other bicycle, it's the one costing $250 or the one costing $375.

Case 1: Say the other bicycle is the one costing $250; thus, the gross profit on the other bicycle= 425 - 250 = 175 (Option E)

Let's check the other case too.

Case 2: Say the other bicycle is the one costing $375; thus, the gross profit on the other bicycle= 425 - 375 = 50 (No such option )

The correct answer: E

Hope this helps!

-Jay
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Shahrukh_mbabreakspace: Senior | Next Rank: 100 Posts; Posts: 32; Joined: Mon Jul 02, 2018 1:56 amFollowed by: 2 members

by Shahrukh_mbabreakspace » Mon Jul 02, 2018 10:32 pm

Total CP = 250 + 375 = 625
Total Profit = 250
So, Total SP= 875
Now, one is 450, so other will be 425

Now,2 profits are possible at 425: 175 and 50

Ans: 175

swerve: Legendary Member; Posts: 2591; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

by swerve » Tue Jul 03, 2018 9:16 am

Let x be the sum of the selling prices of 2 bicycles.
Then x -(250 +375) = 250
x = 875.

If one of the bicycles selling price is 450 then the other bicycles selling price will be 875 - 450 = 425.
The gross profit may be 425 - 250 = 175 or 425 - 375 = 50.

Hence the correct answer is E.

Jeff@TargetTestPrep: GMAT Instructor; Posts: 1462; Joined: Thu Apr 09, 2015 9:34 amFollowed by: 22 members; Location: New York, NY; Thanked: 39 times

by Jeff@TargetTestPrep » Wed Jul 25, 2018 4:45 pm

BTGmoderatorDC wrote:A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75

B. $100

C. $125

D. $150

E. $175

We can assume that the $375 bicycle is sold for $450. So the profit on this bicycle is 450 - 375 = $75. Since the total profit is $250, the other bicycle must be sold for a profit of 250 - 75 = $175.

Alternate Solution:

The total cost of the bicycles to the store is 250 + 375 = $625.

Since the total profit is $250, the sum of the sale prices of the bicycles is 625 + 250 = $875.

Since one of the bicycles sold for $450, the other sold for 875 - 450 = $425.

If the bike costing $250 is sold for $425, the profit is 425 - 250 = $175.

If the bike costing $375 is sold for $425, the profit is 425 - 375 = $50.

$175 is among the answer choices; thus, the answer is E.

Answer: E

Jeffrey Miller
Head of GMAT Instruction
[email protected]

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