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• ### $450 Tuition Credit & Official CAT Packs FREE November 15, 2018 November 15, 2018 10:00 PM MST 11:00 PM MST EMPOWERgmat is giving away the complete Official GMAT Exam Pack collection worth$100 with the 3 Month Pack ($299) • ### Free GMAT Strategy Webinar November 17, 2018 November 17, 2018 07:00 AM PST 09:00 AM PST Nov. 17, 7 AM PST. Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT. # A clothing store's revenue last May was 6 percent less than  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: ### Hide Tags Manager Status: struggling with GMAT Joined: 06 Dec 2012 Posts: 136 Location: Bangladesh Concentration: Accounting GMAT Date: 04-06-2013 GPA: 3.65 A clothing store's revenue last May was 6 percent less than [#permalink] ### Show Tags Updated on: 16 Dec 2012, 08:28 7 44 00:00 Difficulty: 95% (hard) Question Stats: 46% (02:42) correct 54% (02:47) wrong based on 706 sessions ### HideShow timer Statistics 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.

Originally posted by mun23 on 15 Dec 2012, 13:46.
Last edited by Bunuel on 16 Dec 2012, 08:28, edited 1 time in total.
Renamed the topic and edited the question.
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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18 May 2014, 19:35
16
1
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.

Hope it helps!!!

Kudos if you find it useful!!!!!
##### General Discussion
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Re: A clothing stores revenue last May was 6  [#permalink]

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16 Dec 2012, 06:34
1
4
mun23 wrote:
A clothing stores revenue last May was 6 percent less than its revenue last april.The stores revenue last may was greater than its expenses last may, and the stores revenue last april was greater than its expenses last april.Was the stores gross profit last may less than its gross profit last april?
(A)The stores revenue last may was $2400 less than its revenue last april (B)The stores expense last May were 4%less than its expense last april Need details explanation.......... If you find this post helpful plz give +1 kudos Gross Profit = Revenue - Expense Revenue > Expense as given for both months. Revenue Expense April R E May .94R .96E Is R - E > .94R - .96E Yes. OA B. _________________ --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Please +1 KUDO if my post helps. Thank you. Intern Status: GMAT Streetfighter!! Joined: 22 Nov 2012 Posts: 36 Location: United States Concentration: Healthcare, Finance GPA: 3.87 Re: A clothing store's revenue last May was 6 percent less than [#permalink] ### Show Tags 10 Jan 2013, 02:20 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.

Bunuel can you chime in. I am struggling to understand the OE.
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Re: A clothing stores revenue last May was 6  [#permalink]

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10 Jan 2013, 08:46
1
BangOn wrote:
mun23 wrote:
A clothing stores revenue last May was 6 percent less than its revenue last april.The stores revenue last may was greater than its expenses last may, and the stores revenue last april was greater than its expenses last april.Was the stores gross profit last may less than its gross profit last april?
(A)The stores revenue last may was $2400 less than its revenue last april (B)The stores expense last May were 4%less than its expense last april I think this one is pretty difficult. My math isn't that good, so I had to use a plug-n-chug method. Given the below equations: Gross Profit = Revenue - Expense Revenue > Expense as given for both months. Revenue Expense April R E May .94R .96E Is R - E > .94R - .96E ? Assume some extreme cases: Case 1: R=1000 | E=999.99 R-E = 0.01 | .94R-.96E = -19.99 | April > May Case 2: R=1000 | E=0 R-E = 1000 | .94R-.96E = 940 | April > May So no matter what, April always greater than may. Intern Status: GMAT Streetfighter!! Joined: 22 Nov 2012 Posts: 36 Location: United States Concentration: Healthcare, Finance GPA: 3.87 Re: A clothing stores revenue last May was 6 [#permalink] ### Show Tags 11 Jan 2013, 16:55 asimov wrote: BangOn wrote: mun23 wrote: A clothing stores revenue last May was 6 percent less than its revenue last april.The stores revenue last may was greater than its expenses last may, and the stores revenue last april was greater than its expenses last april.Was the stores gross profit last may less than its gross profit last april? (A)The stores revenue last may was$2400 less than its revenue last april

(B)The stores expense last May were 4%less than its expense last april

I think this one is pretty difficult. My math isn't that good, so I had to use a plug-n-chug method.

Given the below equations:
Gross Profit = Revenue - Expense
Revenue > Expense as given for both months.

Revenue Expense
April R E
May .94R .96E

Is R - E > .94R - .96E ?

Assume some extreme cases:
Case 1: R=1000 | E=999.99
R-E = 0.01 | .94R-.96E = -19.99 | April > May
Case 2: R=1000 | E=0
R-E = 1000 | .94R-.96E = 940 | April > May

So no matter what, April always greater than may.

I did the same, but selecting values for this question made me feel vulnerable to a yes/no outcome, so I was looking for an algebraic explanation. Also, the question indicates that revenue is greater than expense for both months, so I don't think you can end up a with a negative value for May.

These numbers work a bit better for your first example.

May: Revenue = 1000 Exp = 200
April: Revenue= 940 Exp= 192

Now that I think about it, I may have just answered my own question!
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Re: A clothing stores revenue last May was 6  [#permalink]

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14 Jan 2013, 19:36
5
jgomey wrote:
I did the same, but selecting values for this question made me feel vulnerable to a yes/no outcome, so I was looking for an algebraic explanation. Also, the question indicates that revenue is greater than expense for both months, so I don't think you can end up a with a negative value for May.

These numbers work a bit better for your first example.

May: Revenue = 1000 Exp = 200
April: Revenue= 940 Exp= 192

Now that I think about it, I may have just answered my own question!

Thought about it a bit more.

Simplifying algebraically:

.94R-.96E = .94R-.94E-.02E = .94(R-E)-.02E
Since we are subtracting, we assume E is positive (-E is negative). R-E > .94 (R-E) ALWAYS (given R-E is positive). Thus, R-E > 0.94 (R-E) – 0.02E
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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12 May 2013, 07:59
2
1
Stmt 1 - Insuff clearly

Stmt 2 -
April May
Revenue------------ R 0.94R
Expense------------ E 0.96E

Given - R>E
Question - is Profit in May < Profit in April ( i.e 0.94R-0.96E < R-E ?)
Simplifying the above , we get is 4E>6R ? Ans is NO since R>E . Sufficient
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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Updated on: 20 May 2014, 04:34
1
Actually found my way of doing it. Follow me ok?
APR MAY
Rev X 0.94X
Exp Z Y
Profits X-Z> 0.94X+Y?

Is 0.06x>Z+Y?

We also know that '0.94x>y' and that 'x>z'
Statement 1

0.06X = 2400

We can find the value of 'x' here but we still don't know if its greater

For instance if y=0.93x and z=0.93x then answer is NO

If y=0.01x and z=0.01x answer is YES

This is even without knowing the value of X since 'X' must be a positive number

Staetment 2

y=0.96z therefore we have that

0.06x>0.04z?

6x>4z ---> 3x>2z?

Well, since both numbers must be positive and since x>z then answer to this is YES

Hence sufficient

Hope this clarifies
Kudos if you like

Originally posted by jlgdr on 18 May 2014, 15:00.
Last edited by jlgdr on 20 May 2014, 04:34, edited 1 time in total.
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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15 Sep 2014, 04:49
7
1
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. Solution : Statement (1) is not sufficient. Statement (2) is sufficient, refer following figure. Attachment: Revenue.jpg [ 65.5 KiB | Viewed 11043 times ] _________________ Piyush K ----------------------- Our greatest weakness lies in giving up. The most certain way to succeed is to try just one more time. ― Thomas A. Edison Don't forget to press--> Kudos My Articles: 1. WOULD: when to use? | 2. All GMATPrep RCs (New) Tip: Before exam a week earlier don't forget to exhaust all gmatprep problems specially for "sentence correction". Manager Joined: 30 Mar 2013 Posts: 109 Re: A clothing store's revenue last May was 6 percent less than [#permalink] ### Show Tags 26 Nov 2014, 22:35 gmacforjyoab wrote: Stmt 1 - Insuff clearly Stmt 2 - April May Revenue------------ R 0.94R Expense------------ E 0.96E Given - R>E Question - is Profit in May < Profit in April ( i.e 0.94R-0.96E < R-E ?) Simplifying the above , we get is 4E>6R ? Ans is NO since R>E . Sufficient Isn't the answer to the question yes, it is less. Manager Joined: 21 Sep 2012 Posts: 216 Location: United States Concentration: Finance, Economics Schools: CBS '17 GPA: 4 WE: General Management (Consumer Products) A clothing store's revenue last May was 6 percent less than [#permalink] ### Show Tags 02 Dec 2014, 09:09 1 Let x be the revenue for April. Therefore revenue for May is 0.94x. Let y be the cost for April. We are asked whether GP for May is less that GP for April? Gross Profit = Revenue - Cost GP for April = (x-y) Change in revenue and change in cost will impact GP. In comparison to April, May has seen reduction in both cost and revenue. In order for GP of May to be less than that of April, reduction in revenue has to be greater than reduction in cost. so we can rephrase the question as is reduction in revenue > reduction in cost ? statement 1 :- The stores revenue last May was$2,400 less than its revenue last April.
No information about cost is given. statement in insufficient.

statement 2 :- The stores expenses last May were 4 percent less than its expenses last April.
Therefore cost for May is 0.96y.
We want to find whether
is reduction in revenue > reduction in cost ?
is 0.6x(reduction in revenue)>0.4y(reduction in cost)
x/y>0.4/0.6
x/y>2/3 ....... ?

In the question it is given that the store's revenue last April was greater than its expenses last April.
so x/y has to be greater that 1.
Therefore x/y is greater that 2/3 and hence GP for May is less than that for April.
Statement is sufficient.

Ans - B
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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17 Jan 2015, 11:55
Ans B

R>E for both months

Profit in April, Pa = Ra-Ea

Profit in May, Pm = Rm-Em

comparing....Revenue decreased by 6% and expenses by 4%

Profit comparision....( bigger no. decreased by more) - (a smaller no. decreased by less) =>overall profit decreased more=> B is sufficient

A

doesnt even connect hw expenses vary...so not sufficient
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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27 Jun 2015, 04:44
here is another way to look at statement 2. Already explained but will simplify through algebra...

Let ---------------- --Apr---------------May
Revenue---------- ----X--------------- 0.94X ( given in stem that revenue is 6% less in May)
Expense ---------- ----Y ---------- ----0.96Y ( Given in statement 2 that expense in May is 4% less)

We have to prove is : 0.94X - 0.96 Y > X- Y
(Profit of May is greater than Apr)

We are told that in both months Profit is +ve or greater than zero. Means that X>Y --> X/Y > 1.

now reducing the above equation 0.94X - 0.96 Y > X- Y
we get X/Y < 2/3

Now for (0.94X - 0.96 Y > X- Y) equation to be true, X/Y < 2/3 has to be true.

But we are told X/Y>1 therefore the above equation doesn't hold true.

Hence B.
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A clothing store's revenue last May was 6 percent less than  [#permalink]

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05 Aug 2015, 10:33
7
Given:
a) $$R_m=0.94*R_a$$
b) $$R_m>E_m$$
c) $$R_a>E_a$$
Legend: m = March, a = April

Question:
Is $$P_m<P_a$$?
OR is $$R_m-E_m<R_a-E_a$$? (Since, Profits = Revenues - Expenses)
OR is $$E_a-E_m<0.06*R_a$$? (Re-arranging and using info from a) above)....Lets call this as (d)

Statement 1) $$R_m = R_a- 2400$$
Substituting this value in a), we get:
$$R_a - 2400 = 0.94 * R_a$$
$$0.06*R_a = 2400$$
$$R_a = 40,000$$

Substituting this in Question inequality of (d), the question becomes:
Is $$E_a-E_m < 0.06*40000$$?
Or is $$E_a-E_m<2400$$
But we don't know the value of$$E_a$$ OR $$E_m$$ to say this for sure. INSUFFICIENT.

Statement 2) $$E_m=0.96*E_a$$
Then Question inequality of (d) becomes:
Is $$0.04*E_a < 0.06 * R_a$$?
OR is $$E_a < 1.5*R_a$$?

Now from (c) we know that $$E_a < R_a$$
So $$E_a < 1.5*R_a$$ definitely. SUFFICIENT.

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A clothing store's revenue last May was 6 percent less than  [#permalink]

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21 Sep 2016, 06:49
1
My little contribution based on the previous explanations above.
Attachments

20160921_115059.jpg [ 3.89 MiB | Viewed 5830 times ]

20160921_114749.jpg [ 4.32 MiB | Viewed 5861 times ]

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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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02 May 2017, 17:14
a=April
m=May
R=Revenue
E=Expenses

Profit April: Ra-Ea
Profit May: 0.94Ra-Em

1) No info on expenses. Insuff.

2)

Profit April: Ra-Ea
Profit May: 0.94Ra-0.96Ea

For May, the revenue has decreased by a greater percentage than the expenses. Therefore, the profit in April is greater. Suff. B

Agree? Kudos. Better method? Please comment.
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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02 May 2017, 17:17
gmacforjyoab wrote:
Stmt 1 - Insuff clearly

Stmt 2 -
April May
Revenue------------ R 0.94R
Expense------------ E 0.96E

Given - R>E
Question - is Profit in May < Profit in April ( i.e 0.94R-0.96E < R-E ?)
Simplifying the above , we get is 4E>6R ? Ans is NO since R>E . Sufficient

Answer is yes, isn't it?! Profit for May is less than April...
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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18 Jun 2017, 11:32
we can solve this with logic

6% from something bigger is > 4% from something smaller
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Re: A clothing store's revenue last May was 6 percent less than  [#permalink]

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01 Jul 2017, 00:08
Tricky question.

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. Let the Revenue in May and April be Rm and Ra respectively. Also, let the expenses in May and April be Em and Ea resp. Given that Ra-Rm=0.06 and Rm> Em and Ra> Ea. Profit = Revenue - Expenses To evaluate: Rm-Em < Ra-Ea? Ea-Em < Ra- Rm or Ea-Em < 0.06 Statement 1: The stores revenue last May was$2,400 less than its revenue last April.

From this statement, we can deduce about the revenue values but no information is presented about the expenses. As such, we won't be able to determine the condition.

Statement 2: The stores expenses last May were 4 percent less than its expenses last April.

Em=0.96* Ea.

Ea-Em= Ea-0.96*Ea = 0.04 * Ea

Since Ea < Ra (given) , 0.04 Ea < 0.04 Ra < 0.06 Ra

Hence B alone is sufficient.
Re: A clothing store's revenue last May was 6 percent less than &nbs [#permalink] 01 Jul 2017, 00:08

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