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M08 # Q3

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Status: MBA Aspirant
Joined: 12 Jun 2010
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Location: India
Concentration: Finance, International Business
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M08 # Q3 [#permalink] New post 04 May 2012, 21:31
If the circus were to sell all of its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month. If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue

a) 2
b) 5
c) 100/21
d) 110/20
e) 9/4

Why is the answer for this is not b

From the solution in the gmat club test I could reach the point when L =200P and T = 210 P where L as last month's revenue, T as this month's revenue, P as the usual ticket price.
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Re: M08 # Q3 [#permalink] New post 04 May 2012, 22:10
"If the circus were to sell all of its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month"
=> 220 tickets sold this month yield 10% greater revenue compared to the last month
=> As this is compared against the last month's value, base value is that of last month
=> Let us take the tickets sold last month as X. As a 10% increase results in 220 in this month, (220-X)/X = 10% = 10/100
=> on solving , X = 200
(or we can simply guess 200 as 10% of it 20 and 200+20 = 220)

"If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue"
=> This time the comparison is based on this month's value
=> base value should be this month's
=> suppose last month's value is 100, this month's value must be 105, as there is 5% hike
=> To get the % of decrease in the last year in comparison with this year, go for a reverse calculation
[Reveal] Spoiler:
=> (105-100) decrease from 105 => 5*100/105 % = 100/21 %
Answer C

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Re: M08 # Q3 [#permalink] New post 04 May 2012, 23:27
Expert's post
If the circus were to sell all of its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month. If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue

A. 2
B. 5
C. 100/21
D. 110/20
E. 9/4

For a percentage questions like this one, it's almost always better to plug some smart numbers.

Let the usual price of a ticket be $20 (choose $20 because $20+5%=$21=integer, which will make calculations easier). This month's revenue for this price would be 220*$20=$4,400 and we are told that it's 10% greater than the revenue collected last month, hence the last month's revenue was $4,400/1.1=$4,000;

Circus raised the ticket price by 5%, so the new price was $21 and the actual revenue from 200 tickets was 200*$21=$4,200;

What percent less would last month's revenue be compared to this month's revenue: percent=\frac{4,200-4,000}{4,200}*100=\frac{100}{21}%. General formula for percent increase or decrease, (percent change): percent=\frac{Change}{Original}*100, so as we are comparing the difference to this month's revenue we should put this value ($4,200) in the denominator.

Answer: C.

Also discussed here: if-the-circus-were-to-sell-all-of-its-220-tickets-for-this-126466.html

Hope it helps.
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Re: M08 # Q3   [#permalink] 04 May 2012, 23:27
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