## 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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### If the list price of a new car was $$\12,300,$$ what was the cost of the car to the dealer?

by Gmat_mission » Sun Apr 11, 2021 2:49 am

00:00

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## Global Stats

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

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### Re: If the list price of a new car was $$\12,300,$$ what was the cost of the car to the dealer?

by [email protected] » Sat May 15, 2021 7:20 am

00:00

A

B

C

D

E

## Global Stats

Gmat_mission wrote:
Sun Apr 11, 2021 2:49 am
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
Let x = the cost of the car to the dealer

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

A focused approach to GMAT mastery

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