[DS][marked vs selling] HSPA posts

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HSPA: Legendary Member; Posts: 1101; Joined: Fri Jan 28, 2011 7:26 amFollowed by: 13 members; Thanked: 47 times; GMAT Score:640

by HSPA » Wed Apr 13, 2011 3:19 am

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.

First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

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Source: Beat The GMAT — Data Sufficiency | Wed Apr 13, 2011 3:19 am

bubbliiiiiiii: Legendary Member; Posts: 979; Joined: Tue Apr 14, 2009 1:38 amFollowed by: 12 members; Location: Hyderabad, India; Thanked: 49 times; GMAT Score:700

by bubbliiiiiiii » Wed Apr 13, 2011 3:32 am

Here what I interpret from the question is,

The seller should make ATLEAST 40% of profit.

Moreover, there are two terms, asking price and the cost price. We are required to find the CP.

A:
Though not clear with sentence I tried.

asking price,x, reduced be 10% and seller made profit of $403.
since we are not sure of SP, which is asking price INSUFFICIENT.

B:
Since the profit margin is not given, INSUFFICIENT.

Using both, we can find out the CP which is SP-Profit.

Thus, C.

Regards,

Pranay

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HSPA: Legendary Member; Posts: 1101; Joined: Fri Jan 28, 2011 7:26 amFollowed by: 13 members; Thanked: 47 times; GMAT Score:640

by HSPA » Wed Apr 13, 2011 3:38 am

sorry pranay

First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

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bubbliiiiiiii: Legendary Member; Posts: 979; Joined: Tue Apr 14, 2009 1:38 amFollowed by: 12 members; Location: Hyderabad, India; Thanked: 49 times; GMAT Score:700

by bubbliiiiiiii » Wed Apr 13, 2011 3:41 am

Guess .. I should take a break

Regards,

Pranay

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Anurag@Gurome: GMAT Instructor; Posts: 3835; Joined: Fri Apr 02, 2010 10:00 pmFollowed by: 523 members; Location: Milpitas, CA; Thanked: 1854 times; GMAT Score:770

by Anurag@Gurome » Wed Apr 13, 2011 4:04 am

HSPA wrote: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.

Let the asking price = S, and Original cost = C
Profit = S - C = 40% of C, which implies S - C = 0.4C or S = 1.4C

(1) Asking price = S - 10% of S = 0.9S, Profit = $403 = 0.9S - C
We have two equations, two variables, so we can find the value of C.
So, (1) is SUFFICIENT.

(2) This statement is a little bit confusing as it is mentioned in the main question, "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", but we don't know what was the initial price as the dealer may or may not have changed the price after the initially offered price.

Since the language of (2) is not clear, so the correct answer is A.

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HSPA: Legendary Member; Posts: 1101; Joined: Fri Jan 28, 2011 7:26 amFollowed by: 13 members; Thanked: 47 times; GMAT Score:640

by HSPA » Wed Apr 13, 2011 4:08 am

Thanks Anurag... your input regarding stat #2 is what I wanted...

First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

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manpsingh87: Master | Next Rank: 500 Posts; Posts: 436; Joined: Tue Feb 08, 2011 3:07 amFollowed by: 6 members; Thanked: 72 times

by manpsingh87 » Wed Apr 13, 2011 7:51 am

HSPA wrote:Thanks Anurag... your input regarding stat #2 is what I wanted...

hey..i want to ask you few question before anurag sir can come up with his explanation, can you tell me to what does "$1953" refers to..?? does it refers to asking price(asking price= selling price), or is it refer to the amount which seller got after giving the discount on asking price..!!!

O Excellence... my search for you is on... you can be far.. but not beyond my reach!

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HSPA: Legendary Member; Posts: 1101; Joined: Fri Jan 28, 2011 7:26 amFollowed by: 13 members; Thanked: 47 times; GMAT Score:640

by HSPA » Wed Apr 13, 2011 8:09 am

manpsingh87 wrote:
HSPA wrote:Thanks Anurag... your input regarding stat #2 is what I wanted...
hey..i want to ask you few question before anurag sir can come up with his explanation, can you tell me to what does "$1953" refers to..?? does it refers to asking price(asking price= selling price), or is it refer to the amount which seller got after giving the discount on asking price..!!!

Using 2 : selling price = 1953, marked price = 140%
we dont know if 140% = 1953, selling price can be 110 or 120 or any percent... it just has to be above 100% for seller to make profit...He will mark a bid and will comedown based on bargain but not below 100%

First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

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manpsingh87: Master | Next Rank: 500 Posts; Posts: 436; Joined: Tue Feb 08, 2011 3:07 amFollowed by: 6 members; Thanked: 72 times

by manpsingh87 » Wed Apr 13, 2011 8:12 am

HSPA wrote:
manpsingh87 wrote:
HSPA wrote:Thanks Anurag... your input regarding stat #2 is what I wanted...
hey..i want to ask you few question before anurag sir can come up with his explanation, can you tell me to what does "$1953" refers to..?? does it refers to asking price(asking price= selling price), or is it refer to the amount which seller got after giving the discount on asking price..!!!
Using 2 : selling price = 1953, marked price = 140%
we dont know if 140% = 1953, selling price can be 110 or 120 or any percent... it just has to be above 100% for seller to make profit...He will mark a bid and will comedown based on bargain but not below 100%

good, you just answered your own query...!!! i hope it helps..!!!

O Excellence... my search for you is on... you can be far.. but not beyond my reach!

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