If the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?
(1) The cost to the dealer was equal to \(80\) percent of the list price.
(2) The car was sold for \(\$11,070,\) which was \(12.5\) percent more than the cost to the dealer.
Answer: D
Source: Official Guide
If the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?
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Let x = the cost of the car to the dealerGmat_mission wrote: ↑Sun Apr 11, 2021 2:49 amIf the list price of a new car was \(\$12,300,\) what was the cost of the car to the dealer?
(1) The cost to the dealer was equal to \(80\) percent of the list price.
(2) The car was sold for \(\$11,070,\) which was \(12.5\) percent more than the cost to the dealer.
Answer: D
Source: Official Guide
Target question: What is the value of x?
Statement 1: The cost to the dealer was equal to 80 percent of the list price.
Rewrite as: cost to the dealer = 80% of list price
Substitute to get: x = 80% of $12,300
Since we COULD evaluate 80% of $12,300, we COULD find the value of x, which means we could answer the target question with certainty (but we'd never waste our time doing so on that day!)
Statement 1 is SUFFICIENT
Statement 2: The car was sold for $11,070, which was 12.5 percent more than the cost to the dealer
We can write: $11,070 = 12.5% more than the cost to the dealer
In other words: $11,070 = 12.5% more than x
In other words: $11,070 = x + (12.5% of x)
In other words: $11,070 = x + (0.125x)
In other words: $11,070 = 1.125x
Solve: x = 11,070/1.125
Since we can answer the target question with certainty, statement 2 is SUFFICIENT
Answer: D
Cheers,
Brent