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A certain company that sells only cars and trucks reported

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A certain company that sells only cars and trucks reported [#permalink] New post 21 Jul 2010, 15:59
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Question Stats:

74% (03:10) correct 26% (02:50) wrong based on 118 sessions
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?

(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3
[Reveal] Spoiler: OA
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Re: Percent and Ratio problem from QR 2nd edition PS 155 [#permalink] New post 21 Jul 2010, 16:36
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jpr200012 wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?

(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3


Let the revenue from cars in 1996 be c and revenue from trucks in 1996 be t.

Total revenue in 1997 would be 0.89c+1.07t.
Also as total revenue in 1997 were up 1 percent from 1996, then total revenue in 1997 would be 1.01(c+t).

Equate above two: 0.89c+1.07t=1.01(c+t) --> \frac{c}{t}=\frac{1}{2}.

Answer: A.
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Re: Percent and Ratio problem from QR 2nd edition PS 155 [#permalink] New post 21 Jul 2010, 23:26
A.. I have probably solved this question 3-4 times by now.. Remember the answer.. 1:2
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Re: Percent and Ratio problem from QR 2nd edition PS 155 [#permalink] New post 17 Aug 2010, 07:30
Well, I cannot say its exactly a short method, but looking at the options one can surmise the ans.
Take 100 as base figure. Now try the options.
You can say that "The drop produced by less revenue by Car sales" MUST BE Surpassed by" The gain from Truck Sales". to achieve the Net Gain Effect.
i.e the proportion of Truck Revenue has to be greater than Car Revenue.

By this you can directly eliminate C,D and E. Now for remaining options,
Say we start from B. Then 4:5 will mean :
Rev 400 for cars and Rev 500 for Trucks
Calculate 11% @ 400 and 7% @500. We just have to ensure that
7% @ Trucks MUST BE > 11% @ Cars. Right !!! :)
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A certain company that sells only cars and trucks reported [#permalink] New post 30 Nov 2012, 15:49
You could also look at this problem and realize that car sales have a smaller impact on total revenues than truck sales so the ratio has to be smaller than 1. A is the only answer choice that satisfies this relationship.
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A certain company that sells only cars and trucks reported.. [#permalink] New post 06 Jan 2013, 08:08
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in1996?
[*]1:2
[*]4:5
[*]1:1
[*]3:2
[*]5:3
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Re: A certain company that sells only cars and trucks reported.. [#permalink] New post 06 Jan 2013, 10:21
Expert's post
Drik wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in1996?
[*]1:2
[*]4:5
[*]1:1
[*]3:2
[*]5:3


Its 1/2
Consider the revenue from cars in 1996 x, which reduced to 0.89x in 1997.

Consider the revenue from trucks in 1996 y, which rose to 1.07y in 1997.

Another piece of information that is given is that the total revenue which was (x+y) in 1996, rose to 1.01(x+y) in 1997.
We are required to find x/y.

So using these information, we get 0.89x +1.07y=1.01x +1.01y.
On solving we get x/y as 1/2.
+1A
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Re: A certain company that sells only cars and trucks reported.. [#permalink] New post 07 Jan 2013, 02:00
Expert's post
Drik wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in1996?
[*]1:2
[*]4:5
[*]1:1
[*]3:2
[*]5:3


Merging similar topics. Please refer to the solutions above.

Also, please read carefully and follow: rules-for-posting-please-read-this-before-posting-133935.html Pay attention to the rules #1 and 7. Thank you.
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COLLECTION OF QUESTIONS:
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Re: A certain company that sells only cars and trucks reported [#permalink] New post 02 Jan 2014, 22:22
jpr200012 wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?

(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3


Let us say that the revenues from selling cars was $ 100x and from trucks was $100y in 1996, total revenue: 100x + 100y

Revenue in 1997:
cars: $ 89x trucks: $ 107y total revenue: 89x + 107y = 101x + 101y

Solving the above total revenue equation we get: 12x = 6y i.e. x/y = 1/2

Answer is A.
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Re: A certain company that sells only cars and trucks reported [#permalink] New post 25 May 2014, 16:55
Copied pasted this from the closed thread:

Quote:
Karishma's Post:
Cars denoted by 1 and trucks by 2

w1/w2 = (A2 - Aavg)/(Aavg - A1)
Revenue of cars/Revenue of trucks = (Revenue change of trucks - Avg)/(Avg - Revenue change of cars)
Revenue of cars/Revenue of trucks = (7 - 1)/(1 - (-11))
Notice the highlighted part above. Revenue of trucks changes by +7% and that of cars by -11%.



Can someone explain this to me please? Why is A2 and A1 switched in this equation?

A2-A.avg/ A.avg - A1. What am i missing here?

Thanks!

P.S: I read the "quarter wit" and it makes a lot more sense. Although, how do we tell what are the weights (w1/w2) vs. the actual quantity(avg?)
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Re: A certain company that sells only cars and trucks reported [#permalink] New post 08 Aug 2014, 06:50
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Straight forward weighted average approach
Car Total Truck
-11------ 1------ 7
-----12------6----
So Car/ Truck = 6/12 = 1:2
Ans: A
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Re: A certain company that sells only cars and trucks reported   [#permalink] 08 Aug 2014, 06:50
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