New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    In each of the following questions, two statements or three statements are given. You are expected to solve them and determine which statement or combination of statements is sufficient to answer the question.

    A car dealership sells three types of vehicles: Sedans,

    SUVs, and Trucks. What is the total profit earned from these sales in a month? Statements: I: The dealership sells Sedans for $20,000 each with a profit margin of 15%. SUVs are sold for $30,000 each with a profit margin of 20%, and Trucks are sold for $40,000 each with a profit margin of 25%. The dealership sold 50 Sedans, 30 SUVs, and 20 Trucks in the month. II: The total sales of Sedans and SUVs combined contributed to 70% of the total sales revenue for the month. The dealership aims to increase Truck sales by 50% next month. III: Last month’s total profit was $60,000, and this month is expected to increase by 10% due to a seasonal promotion.
    A Only Statement I alone is sufficient. Correct Answer Incorrect Answer
    B Only Statement II alone is sufficient. Correct Answer Incorrect Answer
    C Only Statement III alone is sufficient. Correct Answer Incorrect Answer
    D Statements I and II together are sufficient. Correct Answer Incorrect Answer
    E All statements together are needed. Correct Answer Incorrect Answer

    Solution

    Statement I: Profit from Sedans = 50 * $20,000 * 0.15 = $150,000. Profit from SUVs = 30 * $30,000 * 0.20 = $120,000. Profit from Trucks = 20 * $40,000 * 0.25 = $200,000. Total profit = $150,000 + $120,000 + $200,000 = $470,000. Sufficient. Statement II: This provides a relationship but does not give specific profit amounts to determine total profit. Not sufficient. Statement III: This provides last month's profit but does not give information about the current month's specific sales, making it insufficient. Not sufficient. The answer is A.

    Practice Next