Stationery Store

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Stationery Store

by umaa » Wed Jul 22, 2009 7:13 pm
OA is E.

I chose A. But the explanation given in the book is, there is no information on the number of pads sold and cost of each pad. Do we need to assume too far from the actual?

I'm too confused.

EDIT: Sorry. Forgot to attach the file
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by raghavsarathy » Thu Jul 23, 2009 3:46 pm
In this question , they do not want us to assume anything right.

Reuired - Total amunt spent by the store for writing pads which are not sold yet.

Statement 1 is cleatly insufficient. We dont know how many writing pads are sold. So we dont know the number of writing pads in the inventory at the end of month.

Statement 2 - We know the total revenue from sale of a certain number of revenue pads. The number sold can vary based on Selling Price. Hence insufficient.

Combing both we dont get the number sold. Hence E