Jerry bought 7 clothing items, including a coat, and the sum of the prices of these items was $365. If there was no sales tax on any clothing item with a price of less than $100 and a 7 percent sales tax on all other clothing items, what was the total sales tax on the 7 items that Jerry bought?
(1) The price of the coat was $125.
(2) The average (arithmetic mean) price for the 6 items other than the coat was $40.
If we consider the two statements together. Considering price of coat = $125. The price of other 6 items would be 365 - 125 = $240, which is in accordance with what statement (2) says about the average price of 6 other items tob be $40 each. Thus the total tax would be on only the coat costing greater than 100. Thus sales tax would be 7% of 125 = $8.75.
But the OA is E
OG 12 DS question
This topic has expert replies
GMAT/MBA Expert
- Rahul@gurome
- GMAT Instructor
- Posts: 1179
- Joined: Sun Apr 11, 2010 9:07 pm
- Location: Milpitas, CA
- Thanked: 447 times
- Followed by:88 members
Statement 1: Price of coat $125.
Therefore for the coat definitely there is 7% sales tax.
Price of other 6 clothing items = $ (365 - 125) = $240.
It is possible that any one or two of the clothing item of these 6 has price greater than $100. Thus there may be 7% sales tax on them.
Not sufficient.
Statement 2: The average (arithmetic mean) price for the 6 items other than the coat was $40. This is same as above!
Not sufficient.
1 & 2 Together: No new information.
Not sufficient.
The correct answer is E.
Therefore for the coat definitely there is 7% sales tax.
Price of other 6 clothing items = $ (365 - 125) = $240.
It is possible that any one or two of the clothing item of these 6 has price greater than $100. Thus there may be 7% sales tax on them.
Not sufficient.
Statement 2: The average (arithmetic mean) price for the 6 items other than the coat was $40. This is same as above!
Not sufficient.
1 & 2 Together: No new information.
Not sufficient.
The correct answer is E.
Rahul Lakhani
Quant Expert
Gurome, Inc.
https://www.GuroMe.com
On MBA sabbatical (at ISB) for 2011-12 - will stay active as time permits
1-800-566-4043 (USA)
+91-99201 32411 (India)
Quant Expert
Gurome, Inc.
https://www.GuroMe.com
On MBA sabbatical (at ISB) for 2011-12 - will stay active as time permits
1-800-566-4043 (USA)
+91-99201 32411 (India)
Rahul,
Kindly explain the following.
If we consider the two statements together. Considering price of coat = $125. The price of other 6 items would be 365 - 125 = $240, which is in accordance with what statement (2) says about the average price of 6 other items to be $40 each. Thus the total tax would be on only the coat costing greater than 100.
Therefore sales tax would be 7% of 125 = $8.75. We get what the question asks.
Kindly explain the following.
If we consider the two statements together. Considering price of coat = $125. The price of other 6 items would be 365 - 125 = $240, which is in accordance with what statement (2) says about the average price of 6 other items to be $40 each. Thus the total tax would be on only the coat costing greater than 100.
Therefore sales tax would be 7% of 125 = $8.75. We get what the question asks.
Hey GDK-
It's providing us the average cost of the 6 items, not the actual cost of the 6 items.
5 items could cost $1 each and the 6th item could cost $235, and that will average out to $40.
In the above scenario, there would be tax on the $125 coat and tax on that $235 item which would total $25.20 in taxes.
It's providing us the average cost of the 6 items, not the actual cost of the 6 items.
5 items could cost $1 each and the 6th item could cost $235, and that will average out to $40.
In the above scenario, there would be tax on the $125 coat and tax on that $235 item which would total $25.20 in taxes.