BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

GMAT Official Guide 2019 A bicycle store purchased two

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 7187
Joined: Thu Sep 07, 2017 4:43 pm
Followed by:23 members

GMAT Official Guide 2019 A bicycle store purchased two

by BTGmoderatorDC » Mon Jul 02, 2018 9:13 pm

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75

B. $100

C. $125

D. $150

E. $175
Top
Source: — Problem Solving |

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 3008
Joined: Mon Aug 22, 2016 6:19 am
Location: Grand Central / New York
Thanked: 470 times
Followed by:34 members

by Jay@ManhattanReview » Mon Jul 02, 2018 9:32 pm
BTGmoderatorDC wrote:A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75

B. $100

C. $125

D. $150

E. $175
Total cost of both the bicycles = 250 + 375 = 625
Thus, the total revenue from both the bicycles = Total cost of both the bicycles + Gross Profit = 625 + 250 = 825

We are given that the store sold one of the bicycles for $450, thus, the store must have sold another bicycle for 825 - 450 = 425

Gross profit on the sale of the other bicycle = 425 - Cost of the other bicycle

We do not know the other bicycle, it's the one costing $250 or the one costing $375.

Case 1: Say the other bicycle is the one costing $250; thus, the gross profit on the other bicycle= 425 - 250 = 175 (Option E)

Let's check the other case too.

Case 2: Say the other bicycle is the one costing $375; thus, the gross profit on the other bicycle= 425 - 375 = 50 (No such option )

The correct answer: E

Hope this helps!

-Jay
_________________
Manhattan Review GMAT Prep

Locations: Manhattan Review Mehdipatnam | Hyderabad GMAT Prep | Bangalore GMAT Courses | Dilsukhnagar GRE Prep | and many more...

Schedule your free consultation with an experienced GMAT Prep Advisor! Click here.
Top
Senior | Next Rank: 100 Posts
Posts: 32
Joined: Mon Jul 02, 2018 1:56 am
Followed by:2 members

by Shahrukh_mbabreakspace » Mon Jul 02, 2018 10:32 pm
Total CP = 250 + 375 = 625
Total Profit = 250
So, Total SP= 875
Now, one is 450, so other will be 425

Now,2 profits are possible at 425: 175 and 50

Ans: 175
Top
Legendary Member
Posts: 2499
Joined: Sun Oct 29, 2017 2:04 pm
Followed by:6 members

by swerve » Tue Jul 03, 2018 9:16 am
Let x be the sum of the selling prices of 2 bicycles.
Then x -(250 +375) = 250
x = 875.

If one of the bicycles selling price is 450 then the other bicycles selling price will be 875 - 450 = 425.
The gross profit may be 425 - 250 = 175 or 425 - 375 = 50.

Hence the correct answer is E.
Top
User avatar
GMAT Instructor
Posts: 1462
Joined: Thu Apr 09, 2015 9:34 am
Location: New York, NY
Thanked: 39 times
Followed by:22 members

by Jeff@TargetTestPrep » Wed Jul 25, 2018 4:45 pm
BTGmoderatorDC wrote:A bicycle store purchased two bicycles, one for $250 and the other for $375, and sold both bicycles at a total gross profit of $250. If the store sold one of the bicycles for $450, which of the following could be the store's gross profit from the sale of the other bicycle?

A. $75

B. $100

C. $125

D. $150

E. $175
We can assume that the $375 bicycle is sold for $450. So the profit on this bicycle is 450 - 375 = $75. Since the total profit is $250, the other bicycle must be sold for a profit of 250 - 75 = $175.

Alternate Solution:

The total cost of the bicycles to the store is 250 + 375 = $625.

Since the total profit is $250, the sum of the sale prices of the bicycles is 625 + 250 = $875.

Since one of the bicycles sold for $450, the other sold for 875 - 450 = $425.

If the bike costing $250 is sold for $425, the profit is 425 - 250 = $175.

If the bike costing $375 is sold for $425, the profit is 425 - 375 = $50.

$175 is among the answer choices; thus, the answer is E.

Answer: E

Jeffrey Miller
Head of GMAT Instruction
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews
Top
Post new topic Post Reply
• Page 1 of 1