GMAT Official Guide 2019 A bicycle store purchased two

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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