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A store purchased a Brand C computer for the same amount that it paid for a Brand D computer and then sold them both at higher prices. The store's gross profit on the Brand C computer was what percent greater than its gross profit on the Brand D computer?
Let's cut through the complexity here. We have two computers bought at the same cost and sold at different prices. We need to find: By what percent was the profit on Computer C greater than the profit on Computer D?
This is a value question - we need a specific percentage. For sufficiency, we must be able to calculate one unique value for this percentage.
Here's the crucial realization: When two items have the same cost but different selling prices, the percentage difference in their profits depends on the markup percentage, not just the selling price difference. A 15% difference in selling prices could mean vastly different profit percentage differences depending on whether we're dealing with high-markup or low-markup items.
Statement 1 tells us: The selling price of Computer C was 15% greater than the selling price of Computer D.
Computer C sold for 15% more than Computer D, but both had the same cost. The key question: Does knowing the selling prices differ by 15% tell us by what percent the profits differ?
Let's test this with two scenarios to see if we get a unique answer:
High-markup scenario (like luxury goods):
Low-markup scenario (like commodity items):
The same 15% difference in selling prices creates dramatically different profit percentage differences (16.7% vs 150%) depending on the markup. Without knowing the cost-to-selling-price relationship, we cannot determine a unique answer.
Statement 1 is NOT sufficient.
[STOP - Not Sufficient!] This eliminates choices A and D.
Now let's forget Statement 1 completely and analyze Statement 2 independently.
Statement 2 tells us: The store's gross profit on Computer D was $300.
We now know the exact dollar amount of profit on Computer D. But we still don't know:
Without any information about Computer C's selling price or profit, we cannot determine by what percent C's profit exceeded D's profit.
For example:
Statement 2 is NOT sufficient.
[STOP - Not Sufficient!] This eliminates choice B.
Now let's use both statements together:
Here's the problem: We still don't know Computer D's selling price! And without that, we can't determine the percentage difference in profits.
Let me demonstrate with two possibilities:
Scenario 1: Computer D sells for $400
Scenario 2: Computer D sells for $1,300
Even with both pieces of information, different selling prices for Computer D (all consistent with a $300 profit) lead to different percentage answers (20% vs 65%). We cannot determine a unique value.
The statements together are NOT sufficient.
[STOP - Not Sufficient!] This eliminates choice C.
The statements together are not sufficient because we cannot determine Computer D's selling price, which is necessary to calculate by what percent Computer C's profit exceeded Computer D's profit.
Answer Choice E: "The statements together are not sufficient."