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# In 1985 a company sold a brand of shoes to retailers for a

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Manager
Joined: 07 Jun 2007
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In 1985 a company sold a brand of shoes to retailers for a [#permalink]  07 Aug 2007, 21:47
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100% (01:12) correct 0% (00:00) wrong based on 2 sessions
16. In 1985 a company sold a brand of shoes to retailers for a fixed price per pair. In 1986 the number of pairs of the shoes that the company sold to retailers decreased by 20 percent, while the price per pair increased by 20 percent. If the company’s revenue from the sale of the shoes in 1986 was $3.0 million, what was the approximate revenue from the sale of the shoes in 1985 ? (A)$2.4 million
(B) $2.9 million (C)$3.0 million
(D) $3.1 million (E)$3.6 million

y is OA D here
Manager
Joined: 22 May 2006
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Lets say in 1985 the number of painrs of shoes sold is x and the price per pair is y.

So in 1982 the price is 1.2y (increase 20%) and the number sold is 0.8x (decrease 20%).

30 = 1.2y*0.8x
xy = 3.1M which is the revenue in 1985.
GMAT Club Legend
Joined: 07 Jul 2004
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Location: Singapore
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Let # of pairs of shoes sold = s
Let price per pair of shoe = p

Then in 1985, revenue = ps
In 1986, revenue = (0.8s)(1.2p) = 3 --> sp = 3.125m.

Ans D
Senior Manager
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Re: PS Section 29 Q 16 [#permalink]  08 Aug 2007, 00:27
crazy123 wrote:
16. In 1985 a company sold a brand of shoes to retailers for a fixed price per pair. In 1986 the number of pairs of the shoes that the company sold to retailers decreased by 20 percent, while the price per pair increased by 20 percent. If the company’s revenue from the sale of the shoes in 1986 was $3.0 million, what was the approximate revenue from the sale of the shoes in 1985 ? (A)$2.4 million
(B) $2.9 million (C)$3.0 million
(D) $3.1 million (E)$3.6 million

y is OA D here

Get D for this.

price in 1985 = p
no. of pairs sold in 1985 = x

In 1986, (1.2p)*(0.8x) = 3 000 000
So, px = (3 000 000/0.96) = $3.1 million = revenue in 1985. Re: PS Section 29 Q 16 [#permalink] 08 Aug 2007, 00:27 Similar topics Replies Last post Similar Topics: 2 More shoes are sold in Town A 9 13 Nov 2013, 05:41 In 1985 a company sold a brand of shoes to retailers for a 3 12 Jul 2007, 18:48 Zapa, a shoe manufacturer, sells shoes to retailers in only 5 09 Oct 2006, 06:48 shoe retailer 2 14 Jun 2005, 05:22 In 1985 a company sold X shoes at$Y each In 1986 X 5 25 May 2005, 12:05
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