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CP SP n P. please HELP

Problem Solving — algebra and arithmetic (GMAT Focus Edition)
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CP SP n P. please HELP

by AJWILL » Sun Jul 22, 2012 6:54 am
A certain shopkeeper used to calculate his profit percentage on the selling price of the articles rather than on its cost price. What is the profit percentage of the shopkeeper when calculated on the cost price ?
(1) Profit percentage when calculated on selling price of the articles is 20 percent.
(2) The cost price of the article is $50
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by kartikshah » Sun Jul 22, 2012 7:35 am
Where are the options?
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by theCEO » Sun Jul 22, 2012 7:44 am
kartikshah wrote:Where are the options?
This is a data sufficiency problem.
Last edited by theCEO on Sun Jul 22, 2012 7:44 am, edited 1 time in total.
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by eagleeye » Sun Jul 22, 2012 7:44 am
AJWILL wrote:A certain shopkeeper used to calculate his profit percentage on the selling price of the articles rather than on its cost price. What is the profit percentage of the shopkeeper when calculated on the cost price ?
(1) Profit percentage when calculated on selling price of the articles is 20 percent.
(2) The cost price of the article is $50
The key to doing this DS question is understanding that to find the profit percentage, we need SP/CP ratio. With that in mind, let's look at the options.

1. Profit percentage when calculated on selling price of the articles is 20 percent.
=> (SP-CP)/SP = 0.2
=> 1-CP/SP = 0.2

So we can find SP/CP. Sufficient.

(2) The cost price of the article is $50.
This doesn't tell us about the CP/SP ratio. Insufficient.

A is the correct answer.

In case any of you are bemused by the explanation, here's the thing (though not required) in detail. We need to find (SP-CP)/CP = SP/CP - 1.

(SP-CP)/SP = 0.2
=> 1-CP/SP =0.2
=> CP/SP = 1-0.2 = 0.8
=> SP/CP = 1/0.8 = 1.25
=> SP/CP - 1 = 1.25 - 1 = 0.25 or 25%. Hence we have found the answer. So statement 1 is sufficient.
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by AJWILL » Sun Jul 22, 2012 10:12 am
WOW. that was easy i just dint understand what to do with the statement "profit percentage on the selling price of the articles rather than on its cost price"

its crystal clear now..

Thanks a ton eagleeye.

i have a weird request. can u please extend ur kindness n look into my other doubts too(if possible)? i understand ur explanations in a jiffy

Thanks
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