mun23 wrote:
A clothing store's revenue last May was 6 percent less than its revenue last April. The store's revenue last May was greater than its expenses last May, and the store's revenue last April was greater than its expenses last April. Was the stores gross profit last May less than its gross profit last April?
(1) The stores revenue last May was $2,400 less than its revenue last April.
(2) The stores expenses last May were 4 percent less than its expenses last April.
Lemme try and help you on this one.
The easiest way out is to put the alphabetical statements in the form of equations in as minimum variables as possible.
Let us assume the revenue for April = R
Revenue for May therefore is = 0.94 R
Let the expense for April = EA
Let the expense for May = EM
We are not given any relationship between EA and EM
But we also know that R > EA
Now what we are asked is:
R- EA > 0.94 R - EM
or
0.06 R > EA - EM
1) The stores revenue last May was $2,400 less than its revenue last April. This statement does not tell us any relationship between EA and EM which is required to solve the inequality. Hence, it is not sufficient.
2) The stores expenses last May were 4 percent less than its expenses last April.
It says EM = 0.96 EA
Therefore, we get EA - EM = 0.04 EA
Hence, out inequality can be reduced to
0.06 R > 0.04 EA
or
R> 2/3 EA
Since we already know R> EA, it has to be greater than 2/3 EA. Hence, this statement is sufficient to answer the question.
Therefore B as an answer.
Hope it helps!!!
Kudos if you find it useful!!!!!