GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 22 Oct 2018, 12:43

Close

GMAT Club Daily Prep

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.

Close

Request Expert Reply

Confirm Cancel

A certain company that sells only cars and trucks reported

  post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

VP
VP
User avatar
Joined: 18 May 2008
Posts: 1131
A certain company that sells only cars and trucks reported  [#permalink]

Show Tags

New post Updated on: 23 Dec 2013, 00:05
1
18
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

75% (02:27) correct 25% (02:47) wrong based on 417 sessions

HideShow timer Statistics

A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?

(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3

OPEN DISCUSSION OF THIS QUESTION IS HERE: a-certain-company-that-sells-only-cars-and-trucks-reported-97674.html

Originally posted by ritula on 19 Nov 2008, 00:30.
Last edited by Bunuel on 23 Dec 2013, 00:05, edited 2 times in total.
Renamed the topic, edited the question, added the OA and moved to PS forum.
Most Helpful Expert Reply
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 50042
Re: A certain company that sells only cars and trucks reported  [#permalink]

Show Tags

New post 23 Dec 2013, 00:06
10
12
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3

Let the revenue from cars in 1996 be \(c\) and revenue from trucks in 1996 be \(t\).

Total revenue in 1997 would be \(0.89c+1.07t\).
Also as total revenue in 1997 were up 1 percent from 1996, then total revenue in 1997 would be \(1.01(c+t)\).

Equate above two: \(0.89c+1.07t=1.01(c+t)\) --> \(\frac{c}{t}=\frac{1}{2}\).

Answer: A.

OPEN DISCUSSION OF THIS QUESTION IS HERE: a-certain-company-that-sells-only-cars-and-trucks-reported-97674.html
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Most Helpful Community Reply
Intern
Intern
avatar
Joined: 05 Jul 2011
Posts: 4
Schools: Harvard Business School
Re: revenue  [#permalink]

Show Tags

New post 14 Jul 2011, 11:20
5
1
ritula wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11% from 1996 and revenues from truck sales in 1997 were up 7 perent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 % from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
1:2
4:5
1:1
3:2
5:3


T+C=R
89C+107T=101R
12C=6T
C/T=6/12=1:2

So Answer is A
General Discussion
Director
Director
avatar
Joined: 14 Aug 2007
Posts: 683
Re: revenue  [#permalink]

Show Tags

New post 19 Nov 2008, 00:43
1
ritula wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down from 1996 and revenues from truck sales in 1997 were up 7 perent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 % from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
1:2
4:5
1:1
3:2
5:3


Are you sure the question is correctly typed?

Approach

----- cars---Trucks -Total
1996- x----- y------- x+y
1997- x1---- y1-- x1+y1

x1= a*x .....(P)
y1= 1.07*y...(Q)

x1+y1/x+y = 1.01
solve using P and Q and find x/y
VP
VP
User avatar
Joined: 18 May 2008
Posts: 1131
Re: revenue  [#permalink]

Show Tags

New post 19 Nov 2008, 03:09
sorry I had missed the percent decrease in sales from 1996. I have edited my post.
Manager
Manager
User avatar
Joined: 21 Jul 2009
Posts: 214
Location: New York, NY
Re: revenue  [#permalink]

Show Tags

New post 02 Sep 2009, 19:14
3
2
My approach to this is as follows:

The difference between the change in cars and the change in trucks is 7% - (-11%) = 18%.
If cars and trucks were at a 1:1 ratio then the overall change would be evenly spaced between -11% and +7%, which is -2%.
The overall change in this case is +1% which is 6% below trucks, and 12% above cars, which means the increase in truck sales dragged the overall percent twice as far as the car sales did. This means the ratio was 1:2 cars to trucks.
Veritas Prep GMAT Instructor
User avatar
P
Joined: 16 Oct 2010
Posts: 8406
Location: Pune, India
Re: revenue  [#permalink]

Show Tags

New post 14 Jul 2011, 21:43
11
7
ritula wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11% from 1996 and revenues from truck sales in 1997 were up 7 perent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 % from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
1:2
4:5
1:1
3:2
5:3


This is a weighted average question. Average of -11% and +7% is +1%.
Using w1/w2 = (A2 - Aavg)/(Aavg - A1),
we get w1/w2 = (7 - 1)/(1- (-11)) = 6/12
Revenue from Car:Revenue from Trucks = 1:2

For explanation of the formula and other details, go to:
http://www.veritasprep.com/blog/2011/03 ... -averages/
http://www.veritasprep.com/blog/2011/04 ... ge-brutes/
_________________

Karishma
Veritas Prep GMAT Instructor

Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >

GMAT self-study has never been more personalized or more fun. Try ORION Free!

Veritas Prep GMAT Instructor
User avatar
P
Joined: 16 Oct 2010
Posts: 8406
Location: Pune, India
Re: revenue  [#permalink]

Show Tags

New post 02 Jan 2014, 22:59
1
VeritasPrepKarishma wrote:
ritula wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11% from 1996 and revenues from truck sales in 1997 were up 7 perent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 % from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
1:2
4:5
1:1
3:2
5:3


This is a weighted average question. Average of -11% and +7% is +1%.
Using w1/w2 = (A2 - Aavg)/(Aavg - A1),
we get w1/w2 = (7 - 1)/(1- (-11)) = 6/12
Revenue from Car:Revenue from Trucks = 1:2

For explanation of the formula and other details, go to:
http://www.veritasprep.com/blog/2011/03 ... -averages/
http://www.veritasprep.com/blog/2011/04 ... ge-brutes/


Responding to a pm:
Quote:
Hi, are you sure you set up the equation correctly? Because if we assume that cars are denoted with 1 and trucks with 2, and then we use the w1/w2 formula, does that formula not say to us "the ratio of cars to trucks is w1:w2".

But then, if we use the formula as you put it, we get this: w1/w2 = (A2 - Aavg)/(Aavg - A1) = (-11 - 1) / (1 - 7) = -12/-6 = 2/1 ---> ratio of cars to trucks is 2:1..

I understand the numbers I have put in the numerator and denominator are the polar opposite of those you used, but again: if 1 = cars, then according to your formula A2 = the percentage of trucks, and A1 = percentage of cars. And thus we have -11 - 1 in the numerator and 1 - 7 in the denominator.

Am I missunderstanding, or did you in fact simply just put the numbers for A1 and A2 in the wrong places?


Cars denoted by 1 and trucks by 2

w1/w2 = (A2 - Aavg)/(Aavg - A1)
Revenue of cars/Revenue of trucks = (Revenue change of trucks - Avg)/(Avg - Revenue change of cars)
Revenue of cars/Revenue of trucks = (7 - 1)/(1 - (-11))
Notice the highlighted part above. Revenue of trucks changes by +7% and that of cars by -11%.
_________________

Karishma
Veritas Prep GMAT Instructor

Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >

GMAT self-study has never been more personalized or more fun. Try ORION Free!

Veritas Prep GMAT Instructor
User avatar
P
Joined: 16 Oct 2010
Posts: 8406
Location: Pune, India
Re: A certain company that sells only cars and trucks reported  [#permalink]

Show Tags

New post 13 Nov 2017, 23:41
1
VeritasPrepKarishma wrote:
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11% from 1996 and revenues from truck sales in 1997 were up 7 perent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 % from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
1:2
4:5
1:1
3:2
5:3


Responding to a pm:

Quote:
Please let me know why is my method incorrect??
now let the revenue of the car in 1996 be x then in 1997 it is 0.89x
now let the revenue of the truck in 1996 be y then in 1997 it is 1.07y
therefore the total revenue in 1996 = x+y and the total revenue in 1997 = 0.89x+1.07y
Now since there is a 1% rise in the total revenue , therefore 1.01(0.89x+1.07y)


The last step has the error.

New Revenue is 1% more than Old Revenue

0.89x+1.07y = (x + y) + 1% of (x + y)
0.89x+1.07y = 1.01 * (x + y)
0.12x = 0.06y
x/y = 1/2
_________________

Karishma
Veritas Prep GMAT Instructor

Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >

GMAT self-study has never been more personalized or more fun. Try ORION Free!

GMAT Club Bot
Re: A certain company that sells only cars and trucks reported &nbs [#permalink] 13 Nov 2017, 23:41
Display posts from previous: Sort by

A certain company that sells only cars and trucks reported

  post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.