New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    Two shops, M and N, sell two types of gadgets, G1 and

    G2. Each gadget’s cost and selling price are unknown. What is the overall profit percentage of Shop M? Statements: 1. Shop N makes 30% less profit than Shop M on gadget G1. Shop N’s total profit on gadgets G1 and G2 is ₹4,000, with ₹2,500 from G1. 2. The cost price of G1 in Shop M is ₹2,000, with a profit margin of 20%. The profit from G2 is double the profit from G1.
    A Statement 1 alone is sufficient, but statement 2 alone is not sufficient. Correct Answer Incorrect Answer
    B Statement 2 alone is sufficient, but statement 1 alone is not sufficient. Correct Answer Incorrect Answer
    C Both statements together are sufficient, but neither alone is sufficient. Correct Answer Incorrect Answer
    D Each statement alone is sufficient. Correct Answer Incorrect Answer
    E Statements 1 and 2 together are not sufficient. Correct Answer Incorrect Answer

    Solution

    From Statement 1: Shop N earns ₹2,500 from G1, making it 30% less than Shop M’s profit on G1. Thus, Shop M’s profit on G1 is 2500 / 0.7 = ₹3,571. Without additional information about Shop M’s profit on G2, Statement 1 alone is insufficient. From Statement 2: Cost of G1 in Shop M is ₹2,000 with a 20% profit, so the profit on G1 is 2000 * 0.2 = ₹400. Since profit on G2 is double that of G1, it’s ₹400 * 2 = ₹800. Total profit = 400 + 800 = ₹1,200, and this gives a profit percentage with total sales, making Statement 2 alone sufficient. Correct Answer: (b) Statement 2 alone is sufficient, but statement 1 alone is not sufficient.

    Practice Next