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

It is currently 25 Jun 2018, 02:52

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A company sells pens and pencils. The Revenue from pens in 2007 was u

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

Hide Tags

Manager
Manager
avatar
Joined: 24 May 2010
Posts: 77
GMAT ToolKit User
A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 23 Jun 2010, 18:36
4
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

89% (01:58) correct 11% (00:00) wrong based on 33 sessions

HideShow timer Statistics

A company sells pens and pencils. The Revenue from pens in 2007 was up 5% from 2006. The revenue from pencils declined 13% over the same period. Overall revenue was down 1% from 06 to 07. What was the ratio of pencil revenue to pen revenue in 2006.
SVP
SVP
User avatar
Status: Three Down.
Joined: 09 Jun 2010
Posts: 1869
Concentration: General Management, Nonprofit
GMAT ToolKit User
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 23 Jun 2010, 19:17
Let us assume the following letters for respective revenues:

Pen (2006) - A1
Pencil (2006) - B1
Pen (2007) - A2
Pencil (2007) - B2

Now from the given information, we can translate the words into equations as follows:

A2 = \(\frac{105}{100}\) A1 - Equation 1

and

B2 = \(\frac{87}{100}\) B1 - Equation 2

Also, we know that

A2 + B2 = \(\frac{99}{100}\) (A1 + B1) - Equation 3

Now adding equations 1 and 2 together, we get

A2 + B2 = \(\frac{105}{100}\) A1 + \(\frac{87}{100}\) B1 - Equation 4

Equation 3 = Equation 4

So we get,

\(\frac{105}{100}\) A1 + \(\frac{87}{100}\) B1 = \(\frac{99}{100}\) (A1 + B1) = \(\frac{99}{100}\) (A1) + \(\frac{99}{100}\) (B1)

Now, separating the terms we get:

\(\frac{105}{100}\) A1 + \(\frac{87}{100}\) B1 = \(\frac{99}{100}\) (A1) + \(\frac{99}{100}\) (B1)

Rearranging terms and canceling the denominator 100 on both sides, we get

(99-87) B1 = (105-99) A1

So \(\frac{B1}{A1}\) = \(\frac{105-99}{99-87}\) = \(\frac{6}{12}\) = \(\frac{1}{2}\)

Is this answer right?
Manager
Manager
avatar
Joined: 24 May 2010
Posts: 77
GMAT ToolKit User
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 23 Jun 2010, 19:21
What logic did you use to add equation 1 to equation 2
SVP
SVP
User avatar
Status: Three Down.
Joined: 09 Jun 2010
Posts: 1869
Concentration: General Management, Nonprofit
GMAT ToolKit User
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 23 Jun 2010, 19:23
Because the second part of the question states a relation between the overall income in 2006 and 2007. Using the variables I've assumed, that's a relation between A1+B1 and A2+B2. So in order to get anything meaningful out of this equation, we'll need another equation with A1+B1 or A2+B2 and hence I decided to add them together in order to get all the terms in the equation in terms of A1 or B1 and hence get the ratio by getting all the similar terms to one side.

Is the answer correct?
Director
Director
avatar
Joined: 23 Apr 2010
Posts: 556
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 24 Jun 2010, 03:57
Do these kind of questions appear on the real test? I mean it seems to me like a relatively difficult question to solve if you have 2 minutes.
SVP
SVP
User avatar
Status: Three Down.
Joined: 09 Jun 2010
Posts: 1869
Concentration: General Management, Nonprofit
GMAT ToolKit User
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 24 Jun 2010, 05:58
I've seen a lot of mixture problems being posted on the forum, and on the few practice tests I've taken, it's been asked. So I am not sure. Maybe someone who's taken the GMAT can answer better.
Expert Post
3 KUDOS received
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 46336
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 24 Jun 2010, 06:02
3
1
Jinglander wrote:
Can I get someone to walk me through this one too.

A company sells pens and pencils. The Revenue from pens in 2007 was up 5% from 2006. The revenue from pencils declined 13% over the same period. Overall revenue was down 1% from 06 to 07. What was the ratio of pencil revenue to pen revenue in 2006.

Please show your work.


It would be easier if you make a table:
Attachment:
untitled.JPG
untitled.JPG [ 11.88 KiB | Viewed 3766 times ]
We are told that "Overall revenue was down 1% from 06 to 07" --> \(0.99(x+y)=1.05x+0.87y\). Question: \(\frac{y}{x}=?\)

\(0.99(x+y)=1.05x+0.87y\) --> \(0.99x+0.99y=1.05x+0.87y\) --> \(12y=6x\) --> \(\frac{y}{x}=\frac{6}{12}=\frac{1}{2}\).

Hope it's clear.
_________________

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

Intern
Intern
User avatar
Affiliations: NYSSA
Joined: 07 Jun 2010
Posts: 32
Location: New York City
Schools: Wharton, Stanford, MIT, NYU, Columbia, LBS, Berkeley (MFE program)
WE 1: Senior Associate - Thomson Reuters
WE 2: Analyst - TIAA CREF
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 24 Jun 2010, 06:12
This one isn't too bad. Say: pen = n and pencil = p and revenue = r.

p+n = r
1.05p+.87n=.99r
now just add plug in for r.
.06n=.12p
p/n = 1/2

Posted from my mobile device
Retired Moderator
User avatar
Status: The last round
Joined: 18 Jun 2009
Posts: 1243
Concentration: Strategy, General Management
GMAT 1: 680 Q48 V34
GMAT ToolKit User
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 24 Jun 2010, 07:48
First, I think its more of a ratio problem than the mixture.

Secondly, I simply cant understand why we are so reluctant to give kudos. Bunuel! Excellent solution. +1 for you. The very last equation contains a little typo though!
_________________

[ From 470 to 680-My Story ] [ My Last Month Before Test ]
[ GMAT Prep Analysis Tool ] [ US. Business School Dashboard ] [ Int. Business School Dashboard ]

I Can, I Will

GMAT Club Premium Membership - big benefits and savings

3 KUDOS received
Manager
Manager
avatar
Joined: 15 Mar 2010
Posts: 81
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 28 Jun 2010, 07:36
3
Jinglander wrote:
Can I get someone to walk me through this one too.

A company sells pens and pencils. The Revenue from pens in 2007 was up 5% from 2006. The revenue from pencils declined 13% over the same period. Overall revenue was down 1% from 06 to 07. What was the ratio of pencil revenue to pen revenue in 2006.

Please show your work.


Let the revenue of pens be 'x'
Let the revenue of pencils be 'y'

the revenue of pens up from 2006 by 5%=>105%
the revenue of pencils down from 2006 by 13%=>87%

Overall revenue down by 1%=>99%

Attachment:
pic2.JPG
pic2.JPG [ 3.08 KiB | Viewed 3669 times ]


hence the ratio of pencils to pens = 6/12 = 1/2
_________________

If you like my post, consider giving me a kudos. THANKS!

Manager
Manager
avatar
Joined: 24 May 2010
Posts: 77
GMAT ToolKit User
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 26 Jul 2010, 16:40
achiever01 I dont understand your solution at all
Expert Post
Veritas Prep GMAT Instructor
User avatar
P
Joined: 16 Oct 2010
Posts: 8105
Location: Pune, India
Re: A company sells pens and pencils. The Revenue from pens in 2007 was u [#permalink]

Show Tags

New post 20 Jun 2018, 04:26
Jinglander wrote:
A company sells pens and pencils. The Revenue from pens in 2007 was up 5% from 2006. The revenue from pencils declined 13% over the same period. Overall revenue was down 1% from 06 to 07. What was the ratio of pencil revenue to pen revenue in 2006.


Responding to a pm:

Yes, we can use weighted averages here since there are two components and we have the total.

w1/w2 = (A2 - Aavg)/(Aavg - A1)

Say, w1 is the weight of pencil revenue and w2 is the weight of pen revenue in 2006 (increase in revenue is over previous revenue so the ratio we get will be of the revenues of 2006)

w1/w2 = (5 - (-1)) / (-1 - (-13)) = 6/12 = 1/2

Revenue of pencils : Revenue of pens = 1:2
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Re: A company sells pens and pencils. The Revenue from pens in 2007 was u   [#permalink] 20 Jun 2018, 04:26
Display posts from previous: Sort by

A company sells pens and pencils. The Revenue from pens in 2007 was u

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


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®.