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## The average (arithmetic mean) price of the 3 items

This topic has 1 expert reply and 0 member replies
jjjinapinch Senior | Next Rank: 100 Posts
Joined
24 Jul 2017
Posted:
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#### The average (arithmetic mean) price of the 3 items

Wed Aug 02, 2017 11:17 am

00:00

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# Global Stats

Difficult

The average (arithmetic mean) price of the 3 items that Kate purchased from a clothing store was $50. If there was no sales tax on any item that had a price of less than$80 and 6 percent sales tax on all other items, what was the total sales tax on the 3 items that Kate purchased?
(1) The price of the most expensive item that Kate purchased from the store was $100. (2) The price of the least expensive item that Kate purchased from the store was$10.

Official Guide question

### GMAT/MBA Expert

Rich.C@EMPOWERgmat.com Elite Legendary Member
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Wed Aug 02, 2017 6:56 pm
Hi jjjinapinch,

We're told that the average price of the 3 items purchased was $50, there was NO sales tax on any item that had a price of LESS than$80 and a 6 percent sales tax on all other items (meaning those items priced $80 or higher). We're asked for the TOTAL TAX on the 3 items. This question can be solved by TESTing VALUES. To start, since the AVERAGE price of the 3 items (pre-tax) was$50, the TOTAL spent was...
(Total)/3 = $50 Total spent (pre-tax) =$150

Since only the items that cost $80 (or more) were taxed, no more than one of the three items could possibly have been taxed - and it's possible that none of the 3 items were taxed. 1) The price of the most expensive item that Kate purchased from the store was$100.

Fact 1 gives us the price of the MOST expensive item, so we can calculate the tax on THAT item (6% of $100 =$6). The remaining two items cost a total of $50, so neither of them would have been taxed. Thus, the answer to the question is$6.
Fact 1 is SUFFICIENT

2) The price of the least expensive item that Kate purchased from the store was $10. IF.... the 3 items cost:$10, $70,$70, then the total tax would be $0 the 3 items cost:$10, $40,$100, then the total tax would be \$6
Fact 2 is INSUFFICIENT

GMAT assassins aren't born, they're made,
Rich

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Contact Rich at Rich.C@empowergmat.com

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