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Interpretation problem?

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Interpretation problem?

by opensof » Sun Feb 28, 2010 12:34 pm
Hi!

I cannot understand the solution to the following's GMAT question. I hope somebody can shed light on the question:

Exclusive of tax, was the total revenue from the sale of book X last week greater than $100?

1) Last week more than 9 copies of book X were sold.

2) Last week the revenue from the sale of each copy of book X was $10.50 plus tax.


Could I consider that when talking about 10.50 it means that tax is already included in that amount. I interpretated it as 10.50 before taxes.

[spoiler]The correct answer is "Statements 1 and 2 TOGETHER are NOT sufficient"[/spoiler]
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by arzanr » Sun Feb 28, 2010 6:19 pm
opensof,

Your interpretation is correct. The $10.50 is before tax.
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by opensof » Mon Mar 01, 2010 12:49 am
opensof,

Your interpretation is correct. The $10.50 is before tax.
Then how is it that both together are not sufficient?

As I see it:

number of books (n): 10 (at least, as it says n>9)
unitary price: $10.50 (before tax*)

Then, minimum total revenue=10*10.50=$105 > $100

For me that would mean that BOTH statements together are required
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by kstv » Mon Mar 01, 2010 7:23 am
It is not important to know whether $10.50 includes tax cos you don't know the tax rate.
The Q is to find the revenue minus the tax. So E
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by arzanr » Mon Mar 01, 2010 8:57 am
Yeah, the ans should be C.
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by harikattamudi » Mon Mar 01, 2010 7:38 pm
Yes, the ans. should be 'C',

Since the Question asks abt exclusive tax and the stmt 2. also provide exclusive tax.

So by combining stmt 1 and 2, we have the result exclusive tax.

So, 'C' is my best bet.
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by miachi » Tue Mar 02, 2010 7:30 am
is 105- tax > 100 ?

tax is unknown.
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by harikattamudi » Tue Mar 02, 2010 9:30 am
The question asks if the revenue, excluding the tax is >100 or not
Yes/ No question

So,
From stmt1. we have no clue of how much each book cost.

From stmt2. we know the price of each book excluding tax.

But combining both the stmts we know the revenue excluding tax.

Since, it is a DS question we don't need the value/ the revenue (In numbers)

So, my strong bet would be 'C'.
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