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
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.