selling price of article

Question

The selling price of an article is equal to the cost of the article plus the markup. The markup on a certain television set is what percent of the selling price?
(1) The markup on the television set is 25 percent of the cost.
(2) The selling price of the television set is $250.
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

IMO, it is C. But OA says it is A. Please help to explain with proper steps.
Thanks.

codesnooker · Answer

According to me also, answer should be (C). What is the source of the question?

maria · Answer

Selling price = M + Cost Mk = 25% of the cost. we do not know the cost. the answer can be E

maria · Answer

any one has an appropriate explanation?

codesnooker · Answer

Dear Maria,

Let me try to explain the method that I have followed.

According to you,

Selling price = M + Cost (CORRECT)

By statement 1,

M = 25% of the cost.

SP = (Cost/4) + Cost

INSUFFICIENT, as it is a linear equation of two unknown variables.

According to 2nd statement:
SP = $250
and SP = M + Cost (as per our forumula)
Therefore, M + Cost = 250

Again INSUFFICIENT as it is a linear equation of two unknown variables.

Now lets take both statements together.

By statement 1,

SP = (Cost/4) + Cost

and By Statement 2, SP = 250

therefore, 250 = (Cost/4) + Cost

Now its is a linear equation of single unknown variable, hence can be solvable. Therefore SUFFICIENT.

Therefore, correct answer should be (C).

maria · Answer

Codesnooker, I got it. Thank you.

arorag · Answer

Guys OA is correct it has to be A. Let x is cost of tv, markup will be 0.25 x S.P.= 1.25 x required info= .25 x/1.25x(100)= 20 %

maria · Answer

Hmmmm. it appears to have different answers. Any expert helps us to confirm the correct answer to this question?

devp · Answer

The answer A is correct. The problem with Codesnooker's explanation is that M was replaced by C rather than C replaced by M. Hope that helps.

mim3 · Answer

devp wrote:The answer A is correct. The problem with Codesnooker's explanation is that M was replaced by C rather than C replaced by M.

Hope that helps.

I'm definitely NOT an expert, but it's A. We're looking for a percentage/ratio/proportion between the selling price (P) and mark-up (M). In the stem we're given Price= Cost + Mark-Up (P= C + M)

1. M= .25C
Plugging it into the what we were given:
P= C+.25C
P=1.25C and we established that M=.25C. We can stop there because we have a proportion between P & M: P:M= .25:1.25 = 20%

2. Nothing there.

breaking bad · Answer

if we put in numbers it becomes easy !! and A it is. cost : 100 markup : 25% : 25 sp: 125 now as per the question : 25= x/100*125 =20%

Scott@TargetTestPrep · Answer

gibran wrote:The selling price of an article is equal to the cost of the article plus the markup. The markup on a certain television set is what percent of the selling price?
(1) The markup on the television set is 25 percent of the cost.
(2) The selling price of the television set is $250.

We can let c = cost of the article and m = the markup and create the expression:

m/(c + m) x 100 = ?

Statement One Alone:

The markup on the television set is 25 percent of the cost.

From statement one, we have m = 0.25c, and thus our expression now is:

m/(c + m) x 100 = ?

0.25c/(c + 0.25c) x 100 = ?

0.25c/(1.25c) x 100 = ?

0.25/1.25 x 100 = 20%

Statement one alone is sufficient to answer the question.

Statement Two Alone:

The selling price of the television set is $250.

With the information in statement two we can create the following equation:

c + m = 250

With the equation c + m = 250, we can simplify m/(c + m) x 100 as m/250 x 100. However, since we don’t know the value of m, we can’t determine the value of m/(c + m) x 100. Thus, statement two alone is not sufficient to answer the question.

Answer: A

Scott Woodbury-Stewart
Founder and CEO
[email protected]

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