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Profit/Loss Question

Expert replies
by la1214 » Sat Dec 15, 2012 8:29 am
Hello,

Please help me understand this-

If a certain store purchased a computer game and then sold it for $50, was the store's gross profit from the purchase and sale of the game less than $8?
1. The store 's gross profit from the purchase and sale of the game was < 25% of the amount for which the store purchased the game
2. The store 's gross profit from the purchase and sale of the game was > 10% of the amount for which the store purchased the game

Thanks
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Source: — Data Sufficiency |

by puneetkhurana2000 » Sat Dec 15, 2012 11:49 am
Let the cost price be x , so profit = 50 - x , we have to find Is 50 - x < 8 ? or x > 42 ?

Statement 1) 50 - x < x/4, solving we get x > 40 ... may be 43 or 41 so does not answer the target question hence Not Sufficient!!!

Statement 2) 50 - x > x/10, solving we get x < 45.45 ... again may be 43 or 41 so does not answer the target question hence Not Sufficient!!!

Together we have 40 < x < 45.45, still x can be 43 or 41 so does not answer the target question hence Not Sufficient!!!

Answer E.
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