## OG 2020: Question No. 381

If a merchant purchased a sofa from a manufacturer for $400 and then sold it, what was the selling price of the sofa?

- The selling price of the sofa was greater than 140 percent of the purchase price.
- The merchant’s gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

Source | OG 2020 |

Type | Data Sufficiency |

Topic | Word Problems |

Sub-Topic | Sales & Purchase |

Difficulty | Easy – Medium |

### Solution

__Steps 1 & 2: Understand Question and Draw Inferences__

__Steps 1 & 2: Understand Question and Draw Inferences__

In this question, we are given

- A merchant purchased a sofa from a manufacturer for $400 and then sold it.

We need to determine

- The selling price of the sofa.

As we have no other relevant information present in the question stem, let us now analyse the individual statements.

__Step 3: Analyse Statement 1__

__Step 3: Analyse Statement 1__

As per the information given in statement 1, the selling price of the sofa was greater than 140 percent of the purchase price.

- However, to determine the exact selling price, we need to know by what exact percentage the selling price is greater than purchase price.

Since we don’t know the exact percentage value, statement 1 is not sufficient to answer the question.

__Step 4: Analyse Statement 2__

__Step 4: Analyse Statement 2__

As per the information given in statement 2, the merchant’s gross profit from the purchase and sale of the sofa was 1/3 of the selling price.

- Profit = selling price – purchase price

Or, 1/3 * selling price = selling price – purchase price

Or, 2/3 * selling price = purchase price = 400

Or, selling price = 400 * 3/2 = 600

Hence, statement 2 is sufficient to answer the question.

__Step 5: Combine Both Statements Together (If Needed)__

__Step 5: Combine Both Statements Together (If Needed)__

Since we can determine the answer from statement 2 individually, this step is not required.

Hence, the correct answer choice is option B.

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