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# A company sells two products, L and M. Last year, seventy percent of

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Math Expert
Joined: 02 Sep 2009
Posts: 57293
A company sells two products, L and M. Last year, seventy percent of  [#permalink]

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16 Nov 2015, 03:18
00:00

Difficulty:

15% (low)

Question Stats:

88% (02:13) correct 12% (02:25) wrong based on 50 sessions

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A company sells two products, L and M. Last year, seventy percent of the units sold were product L, and the price of product L was 25 percent greater than the price of product M. Approximately what percent of the total revenue the company received last year was from the sale of product L?

A. 15%
B. 25%
C. 35%
D. 65%
E. 74%

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Re: A company sells two products, L and M. Last year, seventy percent of  [#permalink]

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16 Nov 2015, 04:03
2
We don't need to solve this. Given that price of L > price of M and that L constitutes 70% of sales, the answer has to be >70%.

Only (D) agrees.

Bunuel wrote:
A company sells two products, L and M. Last year, seventy percent of the units sold were product L, and the price of product L was 25 percent greater than the price of product M. Approximately what percent of the total revenue the company received last year was from the sale of product L?

A. 15%
B. 25%
C. 35%
D. 65%
E. 74%

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Re: A company sells two products, L and M. Last year, seventy percent of  [#permalink]

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16 Nov 2015, 04:09
price of L =1.25 price of m
let L be 70 and m=30
let price for each unit of m =1 ,thus total from m=30
total from l =1.25*70=87.5
total revenue from both =117.50
share of L = (87.50/117.50) * 100 =74.4
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A company sells two products, L and M. Last year, seventy percent of  [#permalink]

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16 Nov 2015, 04:31
1
Percentage of total units that is product L = 70 %
Price of product L = 25 percent greater than price of product M.
Now , we can consider this as a weighted average scenario .
If the price of both the products L and M was equal , then contribution of product L to total sales would be = 70%
But since , price of product L is greater than M , then contribution of product L to total sales will be greater than 70%
The only option is 74%

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A company sells two products, L and M. Last year, seventy percent of  [#permalink]

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17 Nov 2015, 00:59
Not an approach I recommend, but still we can solve this

Revenue of Product L = $$\frac{5}{4} * 75$$
Total Revenue = $$\frac{5}{4} * 75 + 1 * 25$$

Taking Ratio =>
=$$( \frac{5}{4} * 75) / ( \frac{5}{4} * 75 + 1 * 25 )$$
=$$\frac{5*75}{( 5*75 + 100)}$$
=$$\frac{375}{475} = \frac{15}{19} = \frac{75}{95}$$ which approximately equals $$\frac{74}{100}$$
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Re: A company sells two products, L and M. Last year, seventy percent of  [#permalink]

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29 Nov 2015, 12:26
HardWorkBeatsAll wrote:
We don't need to solve this. Given that price of L > price of M and that L constitutes 70% of sales, the answer has to be >70%.

Only (D) agrees.

Bunuel wrote:
A company sells two products, L and M. Last year, seventy percent of the units sold were product L, and the price of product L was 25 percent greater than the price of product M. Approximately what percent of the total revenue the company received last year was from the sale of product L?

A. 15%
B. 25%
C. 35%
D. 65%
E. 74%

Hi HardWorkBeatsAll,

Your deduction here was fantastic - and you're correct, no math is required to answer this question if you can spot the pattern involved. This is a useful skill, but don't let your drive to work quickly keep you from doing enough work to avoid a silly mistake. You actually selected the WRONG answer.

GMAT assassins aren't born, they're made,
Rich
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Re: A company sells two products, L and M. Last year, seventy percent of  [#permalink]

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03 Aug 2019, 16:09
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Re: A company sells two products, L and M. Last year, seventy percent of   [#permalink] 03 Aug 2019, 16:09
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