Multiple choice

Directions: The question below consists of a question and two statements numbered (1) and (2). You have to decide whether the data provided in the statements is sufficient to answer the question. Read both the statements and give answer. A jewellery dealer initially offered a bracelet for sale at an asking price that would give a profit of 40 percent of the original cost to the dealer. What was the original cost of the bracelet?(1) After reducing this asking price by 10 percent, the jewellery dealer sold the bracelet at a profit of \$403. (2) The jewellery dealer sold the bracelet for \$1,953.

  1. if statement (1) alone is sufficient but statement (2) alone is not

  2. if statement (2) alone is sufficient but statement (1) alone is not

  3. if both (1) and (2) together are sufficient but none of them alone is sufficient

  4. if both independently are sufficient

  5. if both statements (1) and (2) together are not sufficient
Reveal answer Fill a bubble to check yourself
D Correct answer
AI explanation

Let the original cost be C, making the initial asking price 1.4 times C. Using statement 1, reducing this asking price by 10 percent sets the selling price at 1.26 times C (1.4C times 0.9), and equating the 403 profit to 0.26 times C solves for the original cost. Using statement 2, since the 1953 selling price equals the reduced asking price of 1.26 times C, dividing 1953 by 1.26 also provides the original cost. Therefore, both statements independently are sufficient.

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