Marketing executives for a certain chewing gum company

We can solve this question using a concise algebraic approach

x(.75) = a 25% decrease of X
x(1.2) = a 20% increase of X

Using algebra we don't even need to plug in numbers

".75 is what percent of 1.2" is essentially the question

75 * 100 = 120x
7500=120x
7500/120=x
62.5 = x

Hi All,

We're told that marketing executives for a certain chewing gum company projected a 20 percent INCREASE in revenue this year over that of last year, but revenue this year actually DECREASED by 25%. We're asked what percent of the projected revenue was the actual revenue. This question can be solved in a couple of different ways, including by TESTing VALUES.

IF... last year's revenues were $100
then the PROJECTED revenues this year were $100 + (.2)($100) = $120
and the ACTUAL revenues this year were $100 - (.25)($100) = $75

The actual revenue, relative to the projected revenue, was $75/$120 = 15/24 = 5/8 = 62.5%

Final Answer:

GMAT assassins aren't born, they're made,
Rich

We can let revenue last year = 100.

Projected revenue was 1.2 x 100 = 120, and actual revenue was 100 x 0.75 = 75.

Thus, actual/projected = 75/120 = 25/40 = ⅝ = 62.5%.

Answer: C