CAT 2002 — QA Question 53
Each question is followed by two statements A and B. Answer each question using the following instructions:
Answer (1) if the question can be solved by any one of the statements, but not the other one.
Answer (2) if the question can be solved by using either of the two statements.
Answer (3) if the question can be solved by using both the statements together and not by any one of them.
Answer (4) if the question cannot be solved with the help of the given data and more data is required.
A dress was initially listed at a price that would have fetched the store a profit of 20% on the wholesale cost. What was the wholesale cost of the dress?
A. After reducing the listed price by 10% the dress was sold for a net profit of 10 dollars.
B. The dress was sold for 50 dollars.
Answer & solution
Correct answer: 1
1
- B
2
- C
3
- D
4
Let 100x be the wholesale cost of the dress.
∴ List price of the dress = 120x
Consider statement A:
Selling Price = 0.9 × List Price = 0.9 × 120x = 108x
Now, Selling Price – Cost Price = Profit
∴ (108x) − (100x) = 10
∴ x = 10/8
∴ Wholesale Cost = 100x = Rs. 125
∴ Statement A alone is sufficient.
Consider statement B:
This gives the selling price of the dress but it is not mentioned whether any discount is provided on the list price or not.
∴ Statement B alone is not sufficient.
Hence, option (a).