Question

The selling price of an article is equal to the cost of the article plus the markup. The markup on a certain television set is what percent of the selling price?
(1) The markup on the television set is 25 percent of the cost.
(2) The selling price of the television set is $250.

• A. Statement (1) alone is sufficient, but statement (2) alone is not sufficient.
• B. Statement (2) alone is sufficient, but statement (1) alone is not sufficient.
• C. Both statements together are sufficient, but neither statement alone is sufficient.
• D. Each statement alone is sufficient.
• E. Statements (1) and (2) together are not sufficient.

Answer 1

The correct option is A Statement (1) alone is sufficient, but statement (2) alone is not sufficient.

1. From statement 1, since it is given that the markup price is 25% of the cost, we can use the formula, Price=Cost+Markup and get the desired ratio of Cost. i.e..
2. The selling price provided in statement 2 is not enough to obtain the desired ratio as there is no information as to the values of Cost and Markup.