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Veritas Test Problem

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Veritas Test Problem

by Samta » Tue May 15, 2012 8:04 pm
At the beginning of a last year, Tony's Auto Dearlership had 200 cars available for sale on the lot. The cars were acquired by Tony's at an average cost of 10,000 dollars each. During last year, Tony's acquired an additional 50 cars. What was the total acquisition cost of the cars that were on the lot at the end of last year?

1) The average cost per car of all cars acquired by Tony's last year was 12500 dollars

2) Tony's total revenue from cars sold last year was 105000 dollars
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by eagleeye » Tue May 15, 2012 8:43 pm
To find total acquisition cost, we need two variables
a. The number of cars at the end of the year and b. the average cost per car of all cars.

1. Gives us the average cost per car of all cars acquired during last year, which in turn will give us b. average of all cars (using b. = (200*10000+50*12500)/(200+50).

2. 2 tells us about the total revenue from cars sold. It does not tell us how many cars were sold directly, or average selling price of each car. So, we don't find out the no. of cars at the end of the year.

Hence, even together, the two statements are INSUFFICIENT. and answer is E.

Let me know if I was right :)
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by karthikpandian19 » Tue May 15, 2012 9:06 pm
This question is wrongly posted in SC section. pls change to DS
Samta wrote:At the beginning of a last year, Tony's Auto Dearlership had 200 cars available for sale on the lot. The cars were acquired by Tony's at an average cost of 10,000 dollars each. During last year, Tony's acquired an additional 50 cars. What was the total acquisition cost of the cars that were on the lot at the end of last year?

1) The average cost per car of all cars acquired by Tony's last year was 12500 dollars

2) Tony's total revenue from cars sold last year was 105000 dollars
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