Ratios/ Profit & Loss: Mr. Potter sells...

Expert replies

euro: Master | Next Rank: 500 Posts; Posts: 120; Joined: Thu Sep 02, 2010 8:56 am; Location: India; Thanked: 7 times; GMAT Score:730

by euro » Fri Oct 01, 2010 10:56 am

[Q] Mr.Potter sells three products A, B and C. He earns different amount of profit from each of them. Among the products A, B and C, which one of them definitely does not earn Mr. Potter the maximum profit?

(1) The selling price of A, B and C are in the ratio of 4:6:5.

(2) The cost price of A, B and C are in the ratio of 3:5:4.

OA is [spoiler](C)[/spoiler]

Like this post

Source: Beat The GMAT — Data Sufficiency | Fri Oct 01, 2010 10:56 am

shovan85: Community Manager; Posts: 991; Joined: Thu Sep 23, 2010 6:19 amFollowed by: 24 members; Location: Bangalore, India; Thanked: 146 times

by shovan85 » Fri Oct 01, 2010 11:18 am

Profit = Sell - Cost

its for sure individually we cannot say anything about profit so ans has to be C or E.

Combine
from 1. A:B:C = 4:6:5
we can say A= 4x B=6x C=5x (x > 0)

from 2 A:B:C = 3:5:4
so A=3y B= 5y C=4y

we cannot find x and y but we can say the difference between them will be higher for which one

Like this post

mj78ind: Master | Next Rank: 500 Posts; Posts: 265; Joined: Mon Dec 28, 2009 9:45 pmFollowed by: 2 members; Thanked: 26 times; GMAT Score:760

by mj78ind » Fri Oct 01, 2010 8:02 pm

euro wrote:[Q] Mr.Potter sells three products A, B and C. He earns different amount of profit from each of them. Among the products A, B and C, which one of them definitely does not earn Mr. Potter the maximum profit?

(1) The selling price of A, B and C are in the ratio of 4:6:5.

(2) The cost price of A, B and C are in the ratio of 3:5:4.

OA is [spoiler](C)[/spoiler]

Good question - what is the source?

1 - Say prices 4x, 6x, 5x. Costs?? hence not sufficient

2 - same as above in reverse

1&2 -
Say prices 4x, 6x, 5x
Costs = 3y, 5y and 4y

Take LCM of revenues and make them same, LCM = 120

for A profits : 120x - 90y
B : 120x - 100y
C: 120x - 96y

since x and y are positive, B can never give us max profits.

[spoiler]Hence pick C[/spoiler]

Like this post

neerajkumar1_1: Master | Next Rank: 500 Posts; Posts: 270; Joined: Wed Apr 07, 2010 9:00 amFollowed by: 2 members; Thanked: 24 times

by neerajkumar1_1 » Fri Oct 01, 2010 9:11 pm

mj78ind wrote:
euro wrote:[Q] Mr.Potter sells three products A, B and C. He earns different amount of profit from each of them. Among the products A, B and C, which one of them definitely does not earn Mr. Potter the maximum profit?

(1) The selling price of A, B and C are in the ratio of 4:6:5.

(2) The cost price of A, B and C are in the ratio of 3:5:4.

OA is [spoiler](C)[/spoiler]
Good question - what is the source?

1 - Say prices 4x, 6x, 5x. Costs?? hence not sufficient

2 - same as above in reverse

1&2 -
Say prices 4x, 6x, 5x
Costs = 3y, 5y and 4y

Take LCM of revenues and make them same, LCM = 120

for A profits : 120x - 90y
B : 120x - 100y
C: 120x - 96y

since x and y are positive, B can never give us max profits.

[spoiler]Hence pick C[/spoiler]

I guess u mean C can never give us the max profits...
as if x = 2
SP for A,B, C = 8, 12, 10
and y = 1
CP for A, B, C = 3, 5, 4

where B will give us the max profit...

Like this post

mj78ind: Master | Next Rank: 500 Posts; Posts: 265; Joined: Mon Dec 28, 2009 9:45 pmFollowed by: 2 members; Thanked: 26 times; GMAT Score:760

by mj78ind » Fri Oct 01, 2010 9:16 pm

neerajkumar1_1 wrote:
mj78ind wrote:
euro wrote:[Q] Mr.Potter sells three products A, B and C. He earns different amount of profit from each of them. Among the products A, B and C, which one of them definitely does not earn Mr. Potter the maximum profit?

(1) The selling price of A, B and C are in the ratio of 4:6:5.

(2) The cost price of A, B and C are in the ratio of 3:5:4.

OA is [spoiler](C)[/spoiler]
Good question - what is the source?

1 - Say prices 4x, 6x, 5x. Costs?? hence not sufficient

2 - same as above in reverse

1&2 -
Say prices 4x, 6x, 5x
Costs = 3y, 5y and 4y

Take LCM of revenues and make them same, LCM = 120

for A profits : 120x - 90y
B : 120x - 100y
C: 120x - 96y

since x and y are positive, B can never give us max profits.

[spoiler]Hence pick C[/spoiler]
I guess u mean C can never give us the max profits...
as if x = 2
SP for A,B, C = 8, 12, 10
and y = 1
CP for A, B, C = 3, 5, 4

where B will give us the max profit...

Neeraj bhai neeraj bhai ........

say x = 5, y = 3, then profits........

A = 120*5- 90*3 = 330
B = 120*5- 100*3 = 300
c = 120*5- 96*3 = 312

Hence B gives least profits, hence answer is C ..........

did you get it bhai ?? Else we can discuss more .......

Cheers

Call me 1 - (412) 897 6727 (US) or leave a msg on BTG for GMAT advise / questions.
If you like the solution, check out my debrief at and leave a comment:
https://www.beatthegmat.com/760-done-dea ... 66740.html

Like this post

neerajkumar1_1: Master | Next Rank: 500 Posts; Posts: 270; Joined: Wed Apr 07, 2010 9:00 amFollowed by: 2 members; Thanked: 24 times

by neerajkumar1_1 » Fri Oct 01, 2010 9:18 pm

shovan85 wrote:Profit = Sell - Cost

its for sure individually we cannot say anything about profit so ans has to be C or E.

Combine
from 1. A:B:C = 4:6:5
we can say A= 4x B=6x C=5x (x > 0)

from 2 A:B:C = 3:5:4
so A=3y B= 5y C=4y

we cannot find x and y but we can say the difference between them will be higher for which one

Hey,
can u explain ur answer
we cannot find x and y but we can say the difference between them will be higher for which one

I solved it only by putting values... can we figure it out directly??

Like this post

neerajkumar1_1: Master | Next Rank: 500 Posts; Posts: 270; Joined: Wed Apr 07, 2010 9:00 amFollowed by: 2 members; Thanked: 24 times

by neerajkumar1_1 » Fri Oct 01, 2010 9:28 pm

mj78ind wrote:
neerajkumar1_1 wrote:
mj78ind wrote:
euro wrote:[Q] Mr.Potter sells three products A, B and C. He earns different amount of profit from each of them. Among the products A, B and C, which one of them definitely does not earn Mr. Potter the maximum profit?

(1) The selling price of A, B and C are in the ratio of 4:6:5.

(2) The cost price of A, B and C are in the ratio of 3:5:4.

OA is [spoiler](C)[/spoiler]
Good question - what is the source?

1 - Say prices 4x, 6x, 5x. Costs?? hence not sufficient

2 - same as above in reverse

1&2 -
Say prices 4x, 6x, 5x
Costs = 3y, 5y and 4y

Take LCM of revenues and make them same, LCM = 120

for A profits : 120x - 90y
B : 120x - 100y
C: 120x - 96y

since x and y are positive, B can never give us max profits.

[spoiler]Hence pick C[/spoiler]
I guess u mean C can never give us the max profits...
as if x = 2
SP for A,B, C = 8, 12, 10
and y = 1
CP for A, B, C = 3, 5, 4

where B will give us the max profit...
Neeraj bhai neeraj bhai ........

say x = 5, y = 3, then profits........

A = 120*5- 90*3 = 330
B = 120*5- 100*3 = 300
c = 120*5- 96*3 = 312

Hence B gives least profits, hence answer is C ..........

did you get it bhai ?? Else we can discuss more .......

Cheers

From what i can get, the question asks for the variable which will not produce the max profits... but that does not mean the least profit...

also with the values of x and y i have mentioned in my prev post, B does not consistently give the least profit as u have mentioned...

hope i am making my point...

Like this post

shovan85: Community Manager; Posts: 991; Joined: Thu Sep 23, 2010 6:19 amFollowed by: 24 members; Location: Bangalore, India; Thanked: 146 times

by shovan85 » Fri Oct 01, 2010 10:07 pm

neerajkumar1_1 wrote:
shovan85 wrote:Profit = Sell - Cost

its for sure individually we cannot say anything about profit so ans has to be C or E.

Combine
from 1. A:B:C = 4:6:5
we can say A= 4x B=6x C=5x (x > 0)

from 2 A:B:C = 3:5:4
so A=3y B= 5y C=4y

we cannot find x and y but we can say the difference between them will be higher for which one
Hey,
can u explain ur answer
we cannot find x and y but we can say the difference between them will be higher for which one

I solved it only by putting values... can we figure it out directly??

Yes we can do this. You agree x and y > 0.

Now you can find some cases when B gives maximum profit and some cases when C gives maximum profit.

But think when you are calculating you are sure at that time who is giving maximum profit. Is n't it? So as it is a Data Sufficiency it does not matter who is giving maximum profit but what matters is we know certainly one guy out of A,B and C is giving a maximum profit . And also for that calculation we know which one of them is giving maximum profit.

Hope I am clear and this helps.

Like this post

shovan85: Community Manager; Posts: 991; Joined: Thu Sep 23, 2010 6:19 amFollowed by: 24 members; Location: Bangalore, India; Thanked: 146 times

by shovan85 » Fri Oct 01, 2010 10:23 pm

Also I believe as the options are A,B,C,D and E and the potters products are A,B and C, this has created much confusion among us.
Please be sure what is our concern here. Its not who is making more profit but that we can say out of the 3 products particularly one product is making most profit at a time.

Like this post

Post new topic Post Reply

• Page 1 of 1

GMAT Course Reviews

560 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (560 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review