Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 350,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

Re: In 1999, Company X's gross profit was what percent of its [#permalink]
14 Apr 2006, 13:06

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.

Let's remember that gross profit equals revenue - expenses.

Statement 1: GP = 1/3 E
GP = R - E
GP = R - 3GP
R = 4GP

Therefore, Gross profit is 1/4 of revenues.

Statement 2: E = 3/4R
GP = R - E
GP = R - 3/4R
GP = 1/4R

Re: In 1999, Company X's gross profit was what percent of its [#permalink]
14 Apr 2006, 13:53

But jcgoodchild, can we just assume that gross profit = revenue - expenses?

Realistically, what if the company had say an amortization charge? If GMAC wants us to use this formula, won't they actually display it next to the question? Because accordingly the answer would be D or C.

Re: In 1999, Company X's gross profit was what percent of its [#permalink]
14 Apr 2006, 14:27

Well, I would be surprised if they didn't tell you in question how to get gross profit. However, even in real life, amortization charges are not applied to gross profit, they are applied to net profit. Gross profit is simply revenue minus all costs related to generating that revenue.

Re: In 1999, Company X's gross profit was what percent of its [#permalink]
25 May 2006, 21:01

ipc302 wrote:

I would say D

P-Profit R- Revenue E- Expense

R =P + E

from first P =1/3* E so R = 4/3 *E from this we can find the percentage

from second E = 3/4 * R so P =1/4 * R From this we can find the percentage

so D

Got the same. Agree! with ipc's solution _________________

"To dream anything that you want to dream, that is the beauty of the human mind. To do anything that you want to do, that is the strength of the human will. To trust yourself, to test your limits, that is the courage to succeed."

Re: In 1999, Company X's gross profit was what percent of its [#permalink]
02 Aug 2008, 16:20

this question, from gmatprep, seems pretty nasty to me:

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

I could have easily guessed the correct answer, but no where does it strictly state that GP=Rev-Expenses I thought this was a trick question so I selected E since no formulaic information was given...does anyone else agree that this question is bogus? Now when I take the test, I may keep second-guessing myself about if I'm making too many assumptions, or not enough assumptions.

Re: In 1999, Company X's gross profit was what percent of its [#permalink]
02 Aug 2008, 20:16

young_gun wrote:

this question, from gmatprep, seems pretty nasty to me:

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

I could have easily guessed the correct answer, but no where does it strictly state that GP=Rev-Expenses I thought this was a trick question so I selected E since no formulaic information was given...does anyone else agree that this question is bogus? Now when I take the test, I may keep second-guessing myself about if I'm making too many assumptions, or not enough assumptions.

This question does not require any formula of profit and loss or revenue and expenses.Just we got to treat this as a set of equations : Question:p=x(r) x=? p=profit r=revenue

consider (1) : p=1/3 * e but here we cant get relation between e and r hence does not answer =>insufficient

consider (2) : e=3/4 * r => this does not solve since we dont know hows e related to p again =>? insufficient consder (1) and (2) => p=1/3*e and e=3/4 * r => p = 1/3 * 3/4 * r => hence x=1/4 => sufficient

IMO C I hope no where we require actual formulae and stuff here it uses a direct linear relation between variables _________________

Back to hometown after a short trip to New Delhi for my visa appointment. Whoever tells you that the toughest part gets over once you get an admit is...