• 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
100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## If a merchant purchased a sofa from a manufacturer for$400

tagged by: AbeNeedsAnswers

## 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:
10197 messages
Followed by:
496 members
Upvotes:
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

Final Answer: B

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

_________________
Contact Rich at Rich.C@empowergmat.com

• 5 Day FREE Trial
Study Smarter, Not Harder

Available with Beat the GMAT members only code

• Get 300+ Practice Questions
25 Video lessons and 6 Webinars for FREE

Available with Beat the GMAT members only code

• Magoosh
Study with Magoosh GMAT prep

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 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

• 5-Day Free Trial
5-day free, full-access trial TTP Quant

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 • FREE GMAT Exam Know how you'd score today for$0

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

### Top First Responders*

1 Brent@GMATPrepNow 41 first replies
2 Ian Stewart 37 first replies
3 Jay@ManhattanReview 32 first replies
4 GMATGuruNY 26 first replies
5 Scott@TargetTestPrep 14 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

199 posts
2 Max@Math Revolution

Math Revolution

92 posts
3 Brent@GMATPrepNow

GMAT Prep Now Teacher

74 posts
4 GMATGuruNY

The Princeton Review Teacher

45 posts
5 Ian Stewart

GMATiX Teacher

43 posts
See More Top Beat The GMAT Experts