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

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A clothing store's revenue last May was 6 percent less than [#permalink] New post 15 Dec 2012, 13:46
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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.
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Re: A clothing store`s revenue last May was 6 [#permalink] New post 14 Jan 2013, 19:36
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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
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Re: A clothing store's revenue last May was 6 percent less than [#permalink] New post 12 May 2013, 07:59
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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
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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..........
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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.
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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.
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Re: A clothing store`s revenue last May was 6 [#permalink] New post 10 Jan 2013, 08:46
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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.
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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!
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Re: A clothing store's revenue last May was 6 percent less than [#permalink] New post 18 May 2014, 15:00
Actually found my way of doing it. Follow me ok?
APR MAY
Rev X 0.94X
Exp Z Y
Profits X-Z> 0.94X+Y?

Is 0.06x>Z+Y?

We also know that '0.94x>y' and that 'x>z'
Statement 1

0.06X = 2400

We can find the value of 'x' here but we still don't know if its greater

For instance if y=0.93x and z=0.93x then answer is NO

If y=0.01x and z=0.01x answer is YES

This is even without knowing the value of X since 'X' must be a positive number

Staetment 2

y=0.96z therefore we have that

0.06x>0.04z?

6x>4z ---> 3x>2z?

Well, since both numbers must be positive and since x>z then answer to this is YES

Hence sufficient

Answer: B

Hope this clarifies
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Last edited by jlgdr on 20 May 2014, 04:34, edited 1 time in total.
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Re: A clothing store's revenue last May was 6 percent less than [#permalink] New post 18 May 2014, 19:35
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.



Lemme try and help you on this one.

The easiest way out is to put the alphabetical statements in the form of equations in as minimum variables as possible.

Let us assume the revenue for April = R
Revenue for May therefore is = 0.94 R

Let the expense for April = EA
Let the expense for May = EM

We are not given any relationship between EA and EM

But we also know that R > EA

Now what we are asked is:

R- EA > 0.94 R - EM

or

0.06 R > EA - EM

1) The stores revenue last May was $2,400 less than its revenue last April. This statement does not tell us any relationship between EA and EM which is required to solve the inequality. Hence, it is not sufficient.

2) The stores expenses last May were 4 percent less than its expenses last April.
It says EM = 0.96 EA

Therefore, we get EA - EM = 0.04 EA

Hence, out inequality can be reduced to

0.06 R > 0.04 EA
or

R> 2/3 EA

Since we already know R> EA, it has to be greater than 2/3 EA. Hence, this statement is sufficient to answer the question.

Therefore B as an answer.
Hope it helps!!!

Kudos if you find it useful!!!!!
Re: A clothing store's revenue last May was 6 percent less than   [#permalink] 18 May 2014, 19:35
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