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

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

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07 Aug 2007, 21:47
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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
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07 Aug 2007, 23:21
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.
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08 Aug 2007, 00:18
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
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Re: PS Section 29 Q 16 [#permalink]

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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
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