Find all School-related info fast with the new School-Specific MBA Forum

It is currently 23 Apr 2014, 06:29

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A clothing store's revenue last May was 6 percent less than

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Senior Manager
Senior Manager
User avatar
Status: struggling with GMAT
Joined: 06 Dec 2012
Posts: 314
Location: Bangladesh
Concentration: Accounting
GMAT Date: 04-06-2013
GPA: 3.65
Followers: 7

Kudos [?]: 72 [1] , given: 46

A clothing store's revenue last May was 6 percent less than [#permalink] New post 15 Dec 2012, 13:46
1
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

47% (02:45) correct 52% (01:50) wrong based on 69 sessions
A clothing store's revenue last May was 6 percent less than its revenue last April. The store's revenue last May was greater than its expenses last May, and the store's revenue last April was greater than its expenses last April. Was the stores gross profit last May less than its gross profit last April?

(1) The stores revenue last May was $2,400 less than its revenue last April.
(2) The stores expenses last May were 4 percent less than its expenses last April.
[Reveal] Spoiler: OA

Last edited by Bunuel on 16 Dec 2012, 08:28, edited 1 time in total.
Renamed the topic and edited the question.
Manager
Manager
Joined: 27 Feb 2012
Posts: 139
Followers: 1

Kudos [?]: 12 [0], given: 22

Re: A clothing store`s revenue last May was 6 [#permalink] New post 16 Dec 2012, 06:34
mun23 wrote:
A clothing store`s revenue last May was 6 percent less than it`s revenue last april.The stores revenue last may was greater than it`s expenses last may, and the stores revenue last april was greater than it`s expenses last april.Was the store`s gross profit last may less than it`s gross profit last april?
(A)The store`s revenue last may was $2400 less than it`s revenue last april

(B)The store`s expense last May were 4%less than it`s expense last april

Need details explanation..........
If you find this post helpful plz give +1 kudos



Gross Profit = Revenue - Expense
Revenue > Expense as given for both months.

Revenue Expense
April R E
May .94R .96E

Is R - E > .94R - .96E

Yes.

OA B.
_________________

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Please +1 KUDO if my post helps. Thank you.

Manager
Manager
Status: GMAT Streetfighter!!
Joined: 22 Nov 2012
Posts: 59
Location: United States
Concentration: Healthcare, Finance
GPA: 3.87
Followers: 0

Kudos [?]: 14 [0], given: 21

Re: A clothing store's revenue last May was 6 percent less than [#permalink] New post 10 Jan 2013, 02:20
mun23 wrote:
A clothing store's revenue last May was 6 percent less than its revenue last April. The store's revenue last May was greater than its expenses last May, and the store's revenue last April was greater than its expenses last April. Was the stores gross profit last May less than its gross profit last April?

(1) The stores revenue last May was $2,400 less than its revenue last April.
(2) The stores expenses last May were 4 percent less than its expenses last April.



Bunuel can you chime in. I am struggling to understand the OE.
VP
VP
Joined: 07 Apr 2009
Posts: 1102
Concentration: General Management, Strategy
Schools: Duke (Fuqua) - Class of 2012
Followers: 25

Kudos [?]: 305 [0], given: 19

GMAT Tests User Premium Member
Re: A clothing store`s revenue last May was 6 [#permalink] New post 10 Jan 2013, 08:46
Expert's post
BangOn wrote:
mun23 wrote:
A clothing store`s revenue last May was 6 percent less than it`s revenue last april.The stores revenue last may was greater than it`s expenses last may, and the stores revenue last april was greater than it`s expenses last april.Was the store`s gross profit last may less than it`s gross profit last april?
(A)The store`s revenue last may was $2400 less than it`s revenue last april

(B)The store`s expense last May were 4%less than it`s expense last april


I think this one is pretty difficult. My math isn't that good, so I had to use a plug-n-chug method.

Given the below equations:
Gross Profit = Revenue - Expense
Revenue > Expense as given for both months.

Revenue Expense
April R E
May .94R .96E

Is R - E > .94R - .96E ?

Assume some extreme cases:
Case 1: R=1000 | E=999.99
R-E = 0.01 | .94R-.96E = -19.99 | April > May
Case 2: R=1000 | E=0
R-E = 1000 | .94R-.96E = 940 | April > May

So no matter what, April always greater than may.
_________________

Diversity

Manager
Manager
Status: GMAT Streetfighter!!
Joined: 22 Nov 2012
Posts: 59
Location: United States
Concentration: Healthcare, Finance
GPA: 3.87
Followers: 0

Kudos [?]: 14 [0], given: 21

Re: A clothing store`s revenue last May was 6 [#permalink] New post 11 Jan 2013, 16:55
asimov wrote:
BangOn wrote:
mun23 wrote:
A clothing store`s revenue last May was 6 percent less than it`s revenue last april.The stores revenue last may was greater than it`s expenses last may, and the stores revenue last april was greater than it`s expenses last april.Was the store`s gross profit last may less than it`s gross profit last april?
(A)The store`s revenue last may was $2400 less than it`s revenue last april

(B)The store`s expense last May were 4%less than it`s expense last april


I think this one is pretty difficult. My math isn't that good, so I had to use a plug-n-chug method.

Given the below equations:
Gross Profit = Revenue - Expense
Revenue > Expense as given for both months.

Revenue Expense
April R E
May .94R .96E

Is R - E > .94R - .96E ?

Assume some extreme cases:
Case 1: R=1000 | E=999.99
R-E = 0.01 | .94R-.96E = -19.99 | April > May
Case 2: R=1000 | E=0
R-E = 1000 | .94R-.96E = 940 | April > May

So no matter what, April always greater than may.


I did the same, but selecting values for this question made me feel vulnerable to a yes/no outcome, so I was looking for an algebraic explanation. Also, the question indicates that revenue is greater than expense for both months, so I don't think you can end up a with a negative value for May.

These numbers work a bit better for your first example.

May: Revenue = 1000 Exp = 200
April: Revenue= 940 Exp= 192

Now that I think about it, I may have just answered my own question!
2 KUDOS received
VP
VP
Joined: 07 Apr 2009
Posts: 1102
Concentration: General Management, Strategy
Schools: Duke (Fuqua) - Class of 2012
Followers: 25

Kudos [?]: 305 [2] , given: 19

GMAT Tests User Premium Member
Re: A clothing store`s revenue last May was 6 [#permalink] New post 14 Jan 2013, 19:36
2
This post received
KUDOS
Expert's post
jgomey wrote:
I did the same, but selecting values for this question made me feel vulnerable to a yes/no outcome, so I was looking for an algebraic explanation. Also, the question indicates that revenue is greater than expense for both months, so I don't think you can end up a with a negative value for May.

These numbers work a bit better for your first example.

May: Revenue = 1000 Exp = 200
April: Revenue= 940 Exp= 192

Now that I think about it, I may have just answered my own question!

Thought about it a bit more.

Simplifying algebraically:

.94R-.96E = .94R-.94E-.02E = .94(R-E)-.02E
Since we are subtracting, we assume E is positive (-E is negative). R-E > .94 (R-E) ALWAYS (given R-E is positive). Thus, R-E > 0.94 (R-E) – 0.02E
_________________

Diversity

Manager
Manager
User avatar
Joined: 07 May 2012
Posts: 76
Location: United States
Followers: 1

Kudos [?]: 30 [0], given: 22

Re: A clothing store's revenue last May was 6 percent less than [#permalink] New post 12 May 2013, 07:59
Stmt 1 - Insuff clearly

Stmt 2 -
April May
Revenue------------ R 0.94R
Expense------------ E 0.96E

Given - R>E
Question - is Profit in May < Profit in April ( i.e 0.94R-0.96E < R-E ?)
Simplifying the above , we get is 4E>6R ? Ans is NO since R>E . Sufficient
Re: A clothing store's revenue last May was 6 percent less than   [#permalink] 12 May 2013, 07:59
    Similar topics Author Replies Last post
Similar
Topics:
New posts Less than 50 percent of a certain tropical country s hkm_gmat 8 10 Oct 2005, 09:27
New posts In a certain clothing store, 60 percent of all the articles andrehaui 9 09 Apr 2007, 11:40
Popular new posts Less than 50 percent of a certain tropical country's sher676 10 18 Aug 2009, 09:18
New posts Less than 10 percent of the world s people, and of the agdimple333 6 28 Jun 2011, 09:33
Popular new posts Experts publish their posts in the topic Last year if 97 percent of the revenues of a company came fr Bunuel 11 19 Jan 2014, 22:52
Display posts from previous: Sort by

A clothing store's revenue last May was 6 percent less than

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.