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 dealerVJesus12 wrote: ↑Thu Apr 15, 2021 12:02 pmIf 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