An auto dealer sells each car at either $20,000 or $30,000.

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An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?

(1) 20 cars were sold for $20,000
(2) 30 cars were marked up 30%

The OA is E.

Source: e-GMAT

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by Jay@ManhattanReview » Tue Aug 28, 2018 9:07 pm

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swerve wrote:An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?

(1) 20 cars were sold for $20,000
(2) 30 cars were marked up 30%

The OA is E.

Source: e-GMAT
Note that some cars with cost price $20,000 may be sold with 20% markup, while some cars may be sold with 30% markup. The same goes for the cars with the cost price of $30,000.

Let's take each statement one by one.

(1) 20 cars were sold for $20,000.

Certainly insufficient. No idea about other cars.

(2) 30 cars were marked up 30%.

Certainly insufficient. No idea about other cars.

(1) and (2) together

From Statement 1, we do not know how many of the 20 cars sold for $20,000 were sold with a markup of 20%.
From Statement 2, we do not know, of the 30 cars sold for 30% markup, how many were sold costing $20,000 and how many were sold costing $30,000.

Insufficient.

The correct answer: E

Hope this helps!

-Jay
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by fskilnik@GMATH » Fri Sep 07, 2018 12:12 pm

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swerve wrote:An auto dealer sells each car at either $20,000 or $30,000. Some cars are marked up at 20% of the cost price and the remaining are marked up at 30% of the cost price. If the dealer sells 50 cars in total, what is the total profit of the dealer?

(1) 20 cars were sold for $20,000
(2) 30 cars were marked up 30%

Source: e-GMAT
Both "grids" (double-matrix) below are viable (check that!) and each one gives a different total profit (our FOCUS) to the dealer.
(No need to calculate explicitly: in the second scenario the dealer sells a larger quantity of cars with lower cost and larger markup...)

\[\left( {1 + 2} \right)\,\,\,{\text{BIFURCATES}}:\]
\[\begin{array}{*{20}{c}}
{}&{{\text{markup}}\,\,{\text{20\% }}}&{{\text{markup}}\,\,{\text{30\% }}}&{{\text{total}}} \\
{{\text{\$ }}\,{\text{20,000}}}&{20}&0&{20} \\
{{\text{\$ }}\,{\text{30,000}}}&0&{30}&{30} \\
{{\text{total}}}&{20}&{30}&{50}
\end{array}\]

\[\begin{array}{*{20}{c}}
{}&{{\text{markup}}\,\,{\text{20\% }}}&{{\text{markup}}\,\,{\text{30\% }}}&{{\text{total}}} \\
{{\text{\$ }}\,{\text{20,000}}}&0&{20}&{20} \\
{{\text{\$ }}\,{\text{30,000}}}&{20}&{10}&{30} \\
{{\text{total}}}&{20}&{30}&{50}
\end{array}\]

We are done!

This solution follows the notations and rationale taught in the GMATH method.

Regards,
fskilnik.
Fabio Skilnik :: GMATH method creator ( Math for the GMAT)
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