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At Billy Bob Breweries, the revenues increased by 12%

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At Billy Bob Breweries, the revenues increased by 12% [#permalink] New post 06 Jul 2013, 07:59
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Question Stats:

70% (02:18) correct 30% (01:21) wrong based on 61 sessions
At Billy Bob Breweries, the revenues increased by 12% from 2002 to 2003 and the costs increased by 4% from 2002 to 2003. If Profit=Revenues-Costs, then what was the percentage change in profit at Billy Bob Breweries from 2002 to 2003?

1. The ratio of revenues to costs of Billy Bob Breweries in 2002 was 5:6

2. The revenues of Billy Bob Breweries in 2002 was 115 dollars and the costs of Billy Bob Breweries in 2002 was 138 dollars
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Re: At Billy Bob Breweries, the revenues increased by 12% [#permalink] New post 18 Jan 2014, 01:22
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guerrero25 wrote:
At Billy Bob Breweries, the revenues increased by 12% from 2002 to 2003 and the costs increased by 4% from 2002 to 2003. If Profit=Revenues-Costs, then what was the percentage change in profit at Billy Bob Breweries from 2002 to 2003?

1. The ratio of revenues to costs of Billy Bob Breweries in 2002 was 5:6

2. The revenues of Billy Bob Breweries in 2002 was 115 dollars and the costs of Billy Bob Breweries in 2002 was 138 dollars


Aaha ! Found an untouched post !

1) there is clearly a loss as statement 1 says costs were more than the revenue
in 2002 ,let the revenue be 5 and the cost be 6 then profit is -1 ( or rather loss)

in 2003 revenue is 1.12 *5 =5.60 and cost is 1.04*6 = 6.24 so profit is 5.60-6.24= -.64( or rather loss )

now we can see loss is less in 2003 (-.64) than in 2002 (-1) or the profit in 2003 is more than 2002
so change in profit % \frac{-.64-(-1)}{-1}*100 =-36% so it means there was an improvement of 36% in the loss of 2002.

take any other value of revenue and cost in 2002 based on the ratio, i.e. 10 and 12 and we will get the same percent change.
Sufficient

2) says the same thing as statement 1 , reduce by 23 to get R/C = 5/6 again sufficient.
Answer D
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- Stne

Re: At Billy Bob Breweries, the revenues increased by 12%   [#permalink] 18 Jan 2014, 01:22
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At Billy Bob Breweries, the revenues increased by 12%

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