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If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa?

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If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa?

by Gmat_mission » Fri Jan 08, 2021 1:59 am

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If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa?

(1) The selling price of the sofa was greater than 140 percent of the purchase price.
(2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

Answer: B

Source: Official Guide
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Source: — Data Sufficiency |

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Re: If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa

by Brent@GMATPrepNow » Sat Jan 09, 2021 6:10 am

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Gmat_mission wrote: ↑
Fri Jan 08, 2021 1:59 am
 If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa?

(1) The selling price of the sofa was greater than 140 percent of the purchase price.
(2) The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

Answer: B

Source: Official Guide
Given: A merchant purchased a sofa from a manufacturer for $400 and then sold it

Target question: What was the selling price of the sofa?

Statement 1: The selling price of the sofa was greater than 140 percent of the purchase price.
Let x = selling price of the sofa
We can write: x > 140% of $400
Simplify: x > $560
If the selling price is greater than $560, then the selling price COULD be $970, $980, $985, . . . etc
Since we cannot answer the target question with certainty, statement 1 is NOT SUFFICIENT

Statement 2: The merchant's gross profit from the purchase and sale of the sofa was 1/3 of the selling price.
Let x = selling price of the sofa
So, the gross profit = x/3

NOTE: Gross profit = selling price - purchase price
For this question, we have: Gross profit = selling price - $400
Replace values to get: x/3 = x - 400
Multiply both sides by 3 to get: x = 3x - 1200
So: -2x = -1200
Solve: x = 600
So, the selling price was $600
Since we can answer the target question with certainty, statement 2 is SUFFICIENT

Answer: B

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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