• NEW! FREE Beat The GMAT Quizzes
Hundreds of Questions Highly Detailed Reporting Expert Explanations
• 7 CATs FREE!
If you earn 100 Forum Points

Engage in the Beat The GMAT forums to earn

## If a merchant purchased a sofa from a manufacturer for $400 ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult 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.

B

Source: Official Guide 2020

### GMAT/MBA Expert

Elite Legendary Member
Joined
23 Jun 2013
Posted:
10184 messages
Followed by:
494 members
2867
GMAT Score:
800
Hi All,

We're told that a merchant purchased a sofa from a manufacturer for $400 and then sold it. We're asked for the selling price of the sofa. This question is based around a mix of basic Arithmetic and Algebra. (1) The selling price of the sofa was greater than 140 percent of the purchase price. Fact 1 tells us that the selling price was GREATER than 140% of$400, so there's clearly a limitless number of possibilities. There's no way to determine the exact selling price, although we know that it would be MORE than (1.4)($400) =$560.
Fact 1 is INSUFFICIENT

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

Based on the information in Fact 2, we can create the following equation:
Profit = (Selling Price) - (Cost)
(1/3)(P) = (P) - 400

This is one variable and one equation, so you CAN solve for P (and there will be just one answer. If you did the extra steps, you would come up with the following:

P = 3P - 1200
1200 = 2P
600 = P
Fact 2 is SUFFICIENT

GMAT assassins aren't born, they're made,
Rich

_________________
Contact Rich at Rich.C@empowergmat.com

• Get 300+ Practice Questions

Available with Beat the GMAT members only code

• FREE GMAT Exam
Know how you'd score today for $0 Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

Available with Beat the GMAT members only code

### Top First Responders*

1 Ian Stewart 59 first replies
2 Brent@GMATPrepNow 59 first replies
3 Jay@ManhattanReview 53 first replies
4 GMATGuruNY 30 first replies
5 ceilidh.erickson 20 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

### Most Active Experts

1 Scott@TargetTestPrep

Target Test Prep

188 posts
2 Max@Math Revolution

Math Revolution

90 posts
3 Brent@GMATPrepNow

GMAT Prep Now Teacher

88 posts
4 Ian Stewart

GMATiX Teacher

68 posts
5 Jay@ManhattanReview

Manhattan Review

61 posts
See More Top Beat The GMAT Experts