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# ds - net income

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VP
Joined: 30 Sep 2004
Posts: 1490
Location: Germany
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ds - net income [#permalink]  27 Dec 2005, 09:39
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Net income of a store consists of book selling revenues minus book selling cost and operation costs. Net income of book selling?
1) Book selling cost is 8/15 of revenues and operation cost is 2/15 of revenues.
2) Net income is twice as much as book selling cost and operating cost.
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SVP
Joined: 16 Oct 2003
Posts: 1815
Followers: 4

Kudos [?]: 50 [0], given: 0

I get E because we need to know revenues or some figure that will give us final net income.
Senior Manager
Joined: 14 Apr 2005
Posts: 419
Location: India, Chennai
Followers: 1

Kudos [?]: 6 [0], given: 0

Re: ds - net income [#permalink]  28 Dec 2005, 04:11
christoph wrote:
Net income of a store consists of book selling revenues minus book selling cost and operation costs. Net income of book selling?
1) Book selling cost is 8/15 of revenues and operation cost is 2/15 of revenues.
2) Net income is twice as much as book selling cost and operating cost.

I don't understand the questions, but still I would choose D.

From the qn we get NI = R - (S+O), where NI = NEt Income, R=Revenue,S=Sell Cost ,O=Op. cost.

from stmt 1 we get S=8/15R, O=2/15R, substituting this in qn we get
NI = R - (8/15R+2/15R)
= R - (10/15R) = R/3

Hence suff.

From stmt2 we get NI = 2(S+0), subst in qn we get
NI = R - NI/2
2NI=2R-NI
3NI=2R
NI = 2R/3
Hence Suff.

So D.
Senior Manager
Joined: 11 Nov 2005
Posts: 332
Location: London
Followers: 1

Kudos [?]: 8 [0], given: 0

Re: ds - net income [#permalink]  28 Dec 2005, 17:18
I think the question ask for value,

by solving we do not get a value and hence the answer is E.

krisrini wrote:
christoph wrote:
Net income of a store consists of book selling revenues minus book selling cost and operation costs. Net income of book selling?

1) Book selling cost is 8/15 of revenues and operation cost is 2/15 of revenues.
2) Net income is twice as much as book selling cost and operating cost.

I don't understand the questions, but still I would choose D.

From the qn we get NI = R - (S+O), where NI = NEt Income, R=Revenue,S=Sell Cost ,O=Op. cost.

from stmt 1 we get S=8/15R, O=2/15R, substituting this in qn we get
NI = R - (8/15R+2/15R)
= R - (10/15R) = R/3

Hence suff.

From stmt2 we get NI = 2(S+0), subst in qn we get
NI = R - NI/2
2NI=2R-NI
3NI=2R
NI = 2R/3
Hence Suff.

So D.
Manager
Joined: 24 Oct 2005
Posts: 52
Followers: 1

Kudos [?]: 5 [0], given: 0

Both the statements, give the value of Net Income based on the other unknown variable.

I am not sure if we need to get the actual value of NetIncome or
Netcome as a relation of the other variable.

Assuming we need to get the numeric value, I go for E, as both are Insufficient
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Director
Joined: 26 Sep 2005
Posts: 578
Location: Munich,Germany
Followers: 1

Kudos [?]: 10 [0], given: 0

got E as well.

we just have ratios, there is simply no figure which we can use with the ratios to arrive at other numbers.
VP
Joined: 20 Sep 2005
Posts: 1023
Followers: 3

Kudos [?]: 27 [0], given: 0

Yes...E as well. Both statements result in 3/2I = R. We don't know R...INSUFF.
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