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Alex bought a smartwatch at \(\$200\) from his friend and sold it to another friend at a certain price. What is his actu

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Alex bought a smartwatch at \(\$200\) from his friend and sold it to another friend at a certain price. What is his actu

by Vincen » Tue Oct 06, 2020 6:50 am

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Alex bought a smartwatch at \(\$200\) from his friend and sold it to another friend at a certain price. What is his actual profit percentage?
1. Alex gave a discount of \(25\%\) while selling the watch.
2. Alex made a profit of \(33.3\%,\) when calculated on the selling price.

Options

A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D) EACH statement ALONE is sufficient.
E) Statements (1) and (2) TOGETHER are NOT sufficient.

Answer: B

Source: e-GMAT
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Source: — Data Sufficiency |
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Re: Alex bought a smartwatch at \(\$200\) from his friend and sold it to another friend at a certain price. What is his

by deloitte247 » Sat Oct 10, 2020 10:00 pm

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B

C

D

E

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Cost of watch = $200
Target question => what is his actual profit percentage?
To find profit and evaluate profit percentage, we need the selling price of the watch.
Statement 1=> Alex gave a discount of 25% while selling the watch.
The actual discount can be calculated from the selling price but the selling price is unknown. So, discount and profit cannot be evaluated. Therefore, statement 1 is NOT SUFFICIENT.

Statement 2=> Alex made a profit of 33.3% when calculated on the selling price.
But selling price = s
Therefore, profit = 33.3% of s = 0.333s
Cost price = 200, profit = 0.333s, selling price = s
s - 0.333s = 200
0.667s = 200
s = 200/0.667 =$299.9
$$\Pr ofit\ percentage=\frac{profit}{\cos t\ price}\cdot\frac{100}{1}$$ $$\%\ profit=\frac{99.9}{200}\cdot\frac{100}{1}$$
Therefore, statement 2 alone is SUFFICIENT. Hence, the correct answer is option B.
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