Data Sufficiency

A store purchases 20 coats that each cost an equal amount and then sold each of the 20 coats at an equal price, what was the store's gross profit on the 20 coats?

1).If the selling price per coat had been twice as much, the store's gross profit on the 20 coats would have been 2400

2).If the store selling price per coat had been $2 more, the store's gross profit on the 20 coats would have been 440

s= selling price of each coat
c= cost price of each coat

profit/coat=s-c

(s-c)*20=P

by condition I
s'=2s
p'=2s-c
P'=(2s-c)*20
P'=2400=(2s-c)*20=2400

Not sufficient

by condition II

s''=s+2
p''=s+2-c
P''=(s+2-c)*20=440
P''=(s-c)*20=400=P
answer should be B

The answer should be B.

Here's why:

1) isn't sufficient, since we have 20 * (2*s - b) = 2400, where s is the price for sold and b is the price for bought.

2) is sufficient, since we have 20 * (s + 2 - b) = 440 --> 20 * (s - b) = 440 - 40 = 400, which is what we're looking for.

IMO - D

mehravikas wrote:IMO - D

WHY? Answer should be B..

It was my mistake, I did a half hearted calculation for statement 1 and assumed that selling price is doubled for each item and the given gross profit can be halved when selling price is not doubled.

rahulg83 wrote:

mehravikas wrote:IMO - D

WHY? Answer should be B..

Yes answer is B..

It should be D. Your aren't looking for net profit which is cost - selling price. You are looking for Gross profit which is simply the total of all the selling prices.

wetandfire wrote:It should be D. Your aren't looking for net profit which is cost - selling price. You are looking for Gross profit which is simply the total of all the selling prices.

^^ Incorrect. What you are describing is Revenue. Profit always involves a subtraction of the cost of goods.

The difference between Net Profit and Gross Profit is that Net Profit accounts for fixed costs, overhead, etc... Gross Profit is just Revenue - Cost of Goods