In 1999, Company X's gross profit was what percent of its

Oldest

Best Reply

Author

Message

TAGS:

SVP

Joined: 05 Jul 2006

Posts: 1565

Followers: 4

Kudos [?]: 63 [0], given: 34

Re: gmatprep DS question [#permalink]

09 Aug 2009, 04:26

ankur55 wrote:

I got this question in gmatprep test today

In 1999 Company X's gross profit was what percent of its revenue?

A) In 1999 Comapny X's gross profit was 1/3 of its expenses.
B) In 1999 Company X's expenses were 3/4 of its revenue.

profit = rev - exp, what is p/r
from 1
p =1/3e ,
rev = 1/3+1 e = 4/3 e, thus p/r = (1/3e)/(4/3e)...suff

from 2

suff
i d say D

Kaplan Promo Code

Knewton GMAT Discount Codes

Manhattan GMAT Discount Codes

Intern

Joined: 29 Jun 2011

Posts: 38

Location: Yugoslavia

Concentration: International Business, Entrepreneurship

GMAT 1: 700 Q48 V38

GPA: 3.72

Followers: 0

Kudos [?]: 2 [0], given: 3

Company X's profit [#permalink]

19 Sep 2011, 08:54

In 1999 Company X's gross profit was what percent of its revenue?

1- In 1999 Company X's gross profit was 1/3 of its expenses.

2- In 1999 Company X's expenses were 3/4 of its revenue.

Requests: If anyone has the time or will, please elaborate on how to set these equations up and whether plugging in numbers will work well on a problem like this. I originally picked B, but was not sure whether C was the correct answer. Turns up the correct answer is

[Reveal] Spoiler:

.

Thanks

Manager

Joined: 13 Jul 2011

Posts: 154

Concentration: Operations, Strategy

Schools: Krannert '15 (WL), W.P. Carey (A)

GMAT 1: 680 Q46 V37

WE: Engineering (Telecommunications)

Followers: 0

Kudos [?]: 11 [0], given: 42

Re: Company X's profit [#permalink]

20 Sep 2011, 06:09

milanproda wrote:

[Reveal] Spoiler:

.

Thanks

To solve this problem we can consider below equation:
revenue - expenditure = profit,
we need to find out what percent of revenue was profit.

Option 1 : we know profit was 1/3 rd of expense so this information is sufficient to find out the ratio of revenue to profit

Option 2: Similar to option 1 we can find out.

So the answer is D.

Re: Company X's profit [#permalink] 20 Sep 2011, 06:09

	Similar topics	Author	Replies	Last post
Similar Topics:	A company s profit was $600,000 in 1990. What was its profit	andrehaui	1	28 May 2007, 06:27
	In 1999 Company X's gross profit is what percent of its	arorag	5	15 Oct 2008, 18:28
	A toy store s gross profit on a computer game was 10 percent	haichao	1	08 Nov 2008, 20:02
	gross profit	vcbabu	4	24 May 2009, 09:03
	A certain manufacturer increased its gross profit on a	saxenarahul021	1	27 Nov 2012, 01:23

In 1999, Company X's gross profit was what percent of its

Main navigation

GMAT Resources

Partners

MBA Resources

GMAT ® is a registered trademark of the Graduate Management Admission Council ® (GMAC ®). GMAT Club's website has not been reviewed or endorsed by GMAC.

GMAT Courses

Admissions Consulting

In 1999, Company X's gross profit was what percent of its

In 1999, Company X's gross profit was what percent of its

Main navigation

GMAT Resources

Partners

MBA Resources