Rick sold his skis

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figs: Senior | Next Rank: 100 Posts; Posts: 70; Joined: Mon Mar 30, 2009 9:00 am; Thanked: 2 times

by figs » Tue Apr 07, 2009 9:41 am

Rick sold his skis for $160.00 and his ski boots for $96.00. He made a profit of 20% on his boots and took a 10% loss on his skis. He ended up with a
A. loss of $1.78
B. loss of $1.50
C. gain of $3.20
D. gain of $7.53
E. gain of $17.06

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Source: Beat The GMAT — Problem Solving | Tue Apr 07, 2009 9:41 am

moutar: Senior | Next Rank: 100 Posts; Posts: 92; Joined: Wed Mar 25, 2009 12:13 pm; Thanked: 10 times

by moutar » Tue Apr 07, 2009 9:57 am

20% profit on $96 = +$19.20
10% loss on $160 = -$16

Therefore overall profit/loss = +19.2 + -16 = +3.2

Gain of $3.20. C.

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syr: Senior | Next Rank: 100 Posts; Posts: 38; Joined: Fri Feb 20, 2009 8:45 am; Thanked: 5 times

My understanding ..

by syr » Tue Apr 07, 2009 12:43 pm

The question says Rick sold skis for $160.00. So this is the Selling Price.. right ? or atleast this was what I thought. So 10% loss would mean CP is $144.

Similarly, 20% profit on 96 means, he sold it for 96 but bought it for 76.8.

Is my reasoning flawed ?

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pakaskwa: Master | Next Rank: 500 Posts; Posts: 107; Joined: Wed Mar 04, 2009 4:39 am; Location: Vancouver; Thanked: 9 times; GMAT Score:750

by pakaskwa » Tue Apr 07, 2009 4:05 pm

Let x and y be the cost for skis and boots.
x(1+0.2)=96 --> x=80
y((1-0.1)=160 --> y=177.78

Total cost = 80+177.78=257.78
Total sales = 160+96=256
Profit/Loss = Sales-Cost = 256-257.78 = -1.78

Losss of -$1.78. Answer is A.

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figs: Senior | Next Rank: 100 Posts; Posts: 70; Joined: Mon Mar 30, 2009 9:00 am; Thanked: 2 times

by figs » Wed Apr 08, 2009 12:10 am

OA A

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moutar: Senior | Next Rank: 100 Posts; Posts: 92; Joined: Wed Mar 25, 2009 12:13 pm; Thanked: 10 times

by moutar » Wed Apr 08, 2009 2:23 am

Oops. Didn't read the question.

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