A certain company that sells only cars and trucks reported that in 200

Let's say revenue from truck sales in 2004= 100
Revenue from car sales in 2004 = 120

(1) In 2005, the revenues from car sales were down less than 20 % from 2004.

If the revenues were 20% less. Then, the actual revenue would have been 120 - 120*20/100= 120-24

But since the revenues are down less then 20%, revenues can be 19% (<revenues by trucks) or 10% (>revenues by trucks)

Not sufficient.

(2) In 2005, the revenues from car sales were down more than 18 % from 2004.
if it were 18%, then the revenues would have been 120- 120*18/100= 120- 22 (approximately)

But since revenues were down more than 18 %; revenues were always less than 100, and less than revenues from trucks. Sufficient.

B is the answer

.

SOLUTION:

let t be the revenues from Trucks sales , and let c be the revenues from Cars sales .

In 2004, \(c=0.2*t--->t=0.83*c\).

In 2005, t is same as in 2004.

Statement 1). In 2005, the revenues from car sales were down less than 20 % from 2004.

In 2005, new revenues from car sales= \(c-(<0.2*c)\) = \(>0.8*c\).
so it may or may not be less than \(0.83*c.\)

Hence Insufficient.


Statement 2) In 2005, the revenues from car sales were down more than 18 % from 2004.

In 2005 , new revenues from care sales=\(c-(>0.18*c) = <0.82*c.\)

it is always less than \(0.83*c\).

Hence Sufficient.

Ans B

2004 ---> C = 1.2 T
2005 ---> T is same and Is C still greater than T? Yes/No

1) C was down less than 20%.
Say C IS down by 20%

In 2004 ---> Suppose T = 100 then C will be 120.
In 2005 ---> C is down by 20% so C = 96 and less than 20% will make C>96.
We know T = 100 (remains unchanged)
So if C=97 and T=100....its NO (C is not greater than T)
if C=101 and T=100.....its YES (C is greater than T)
INSUFF

2) C is down more than 18%.
Again say C IS down by 20%.

From above w.k.t C=96 when its down by 20% (which is clearly more than 18%) and if continues to be more down then C<96.....Always NO
Hence SUFF

Option B

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