## If a club made a gross profit of $0.25 for each candy bar it sold, how many candy bars did the club sell? ##### This topic has expert replies Moderator Posts: 7187 Joined: Thu Sep 07, 2017 4:43 pm Followed by:23 members ### If a club made a gross profit of$0.25 for each candy bar it sold, how many candy bars did the club sell?

by BTGmoderatorDC » Thu Feb 02, 2023 7:29 pm

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## Global Stats

If a club made a gross profit of $0.25 for each candy bar it sold, how many candy bars did the club sell? (1) The total revenue from the sale of the candy bars was$300.
(2) If the club had sold 80 more candy bars, its gross profits would have increased by 20 percent.

OA B

Source: GMAT Prep

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### Re: If a club made a gross profit of $0.25 for each candy bar it sold, how many candy bars did the club sell? by Brent@GMATPrepNow » Thu Feb 09, 2023 8:38 am ## Timer 00:00 ## Your Answer A B C D E ## Global Stats BTGmoderatorDC wrote: Thu Feb 02, 2023 7:29 pm If a club made a gross profit of$0.25 for each candy bar it sold, how many candy bars did the club sell?

(1) The total revenue from the sale of the candy bars was $300. (2) If the club had sold 80 more candy bars, its gross profits would have increased by 20 percent. OA B Source: GMAT Prep Target question: How many candy bars did the club sell? Given: The club made a gross profit of$0.25 for each candy bar it sold

Statement 1: The total revenue from the sale of the candy bars was $300. Let x = the wholesale cost of one candy bar (in dollars) So, x + 0.25 = selling price of one candy bar (in dollars) Let n = the TOTAL number of candy bars sold Revenue = (number of candy bars sold)(selling price for a candy bar) Substitute to get:$300 = (n)(x + 0.25)
As you might imagine, there are many different solutions to this equation.
As such, statement 1 is NOT SUFFICIENT

If you're not convinced, consider these two possible cases:
Case a: The selling price of one candy bar = $300, and the club sold 1 candy bar. In this case, the answer to the target question is the club sold 1 candy bar Case b: The selling price of one candy bar =$150, and the club sold 2 candy bars. In this case, the answer to the target question is the club sold 2 candy bars
Since we cannot answer the target question with certainty, statement 1 is NOT SUFFICIENT

Statement 2: If the club had sold 80 more candy bars, its gross profits would have increased by 20 percent.
APPROACH #1
For every candy bar sold, the gross profit increases by $0.25 (80)($0.25) = $20 So, selling 80 more candy bars results in a gross profit increase of$20
If this $20 increase represents a 20% INCREASE in gross profits, then the ACTUAL gross profits must be$100 (since $20 is 20% of$100)
If the ACTUAL gross profits are $100, and since each candy bar sold results in a gross profit increases of$0.25, the total number of candy bars sold = $100/$0.25 = 400
Since we can answer the target question with certainty, statement 2 is SUFFICIENT

APPROACH #2 (faster)
If the sale of 80 more candy bars would have increased profits by 20%, then 80 represents 20% of the total number of candy bars sold.
In other words: 80 = (0.2)(total number of candy bars sold)
Solve to get: total number of candy bars sold = 400
Once again, statement 2 is SUFFICIENT