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## Gross Profit

This topic has 1 expert reply and 5 member replies
beater Master | Next Rank: 500 Posts
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#### Gross Profit

Wed Feb 18, 2009 11:31 am
A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The store's gross profit from the item was what percent of its cost for the item?
(1) y - x = 20
2) y / x = 5 / 4

fr743 Junior | Next Rank: 30 Posts
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22 Dec 2010
Posted:
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Wed Jul 13, 2011 9:12 am
Can someone else elaborate this problem?

### GMAT/MBA Expert

GMATGuruNY GMAT Instructor
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Wed Jul 13, 2011 12:32 pm
beater wrote:
A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The storeï¿½s gross profit from the item was what percent of its cost for the item?
(1) y ï¿½ x = 20
2) y / x = 5 / 4
Profit = y-x
Profit/Cost = (y-x)/x = y/x - x/x = y/x - 1.
Thus, to determine profit/cost, we need to know the value of y/x.

Question rephrased: what is y/x?

Statement 1: y-x = 20.
No way to determine the value of y/x.
Insufficient.

Statement 2: y/x = 5/4.
Sufficient.

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x2suresh Master | Next Rank: 500 Posts
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07 Aug 2008
Posted:
258 messages
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Wed Feb 18, 2009 11:41 am
beater wrote:
A clothing store acquired an item at a cost of x dollars and sold the item for y dollars. The store's gross profit from the item was what percent of its cost for the item?
(1) y - x = 20
2) y / x = 5 / 4
gp = y-x

% gp to orignal cost = (y-x)/x *100= y/x-1*100

(1) not sufficient

(2)%= y/x-1*100 = (5/4-1)*100 = 25%
sufficient

B

beater Master | Next Rank: 500 Posts
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Wed Feb 18, 2009 11:46 am
Stat (2) provides the ratio of X to Y but not the actual values for X and Y, correct?

kheba Junior | Next Rank: 30 Posts
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10 Aug 2008
Posted:
22 messages
Wed Feb 18, 2009 12:00 pm
Answer B. Equation should be ((y-x)/x)*100

x2suresh Master | Next Rank: 500 Posts
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Posted:
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Wed Feb 18, 2009 12:14 pm
beater wrote:
Stat (2) provides the ratio of X to Y but not the actual values for X and Y, correct?
question is also asking for the % not actual value..

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