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

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

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]
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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 :)
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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]
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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...
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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
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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??
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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...
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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.
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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.
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