GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 27 Jan 2020, 14:26

### 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

# A firm's financial data for 2004-2006 is given in the chart here. If

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

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 60687
A firm's financial data for 2004-2006 is given in the chart here. If  [#permalink]

### Show Tags

01 Nov 2019, 06:18
00:00

Difficulty:

85% (hard)

Question Stats:

39% (02:32) correct 61% (03:21) wrong based on 38 sessions

### HideShow timer Statistics

A firm's financial data for 2004-2006 is given in the chart here. If average costs are expected to be 25% higher over the next 5 year period, what must its average revenue be for 2007-2011 so that the overall average profit will be 1000?

A. 1270
B. 1540
C. 2140
D. 2290
E. 2420

Are You Up For the Challenge: 700 Level Questions

Attachment:

Untitled.png [ 3.63 KiB | Viewed 596 times ]

_________________
VP
Joined: 20 Jul 2017
Posts: 1265
Location: India
Concentration: Entrepreneurship, Marketing
WE: Education (Education)
Re: A firm's financial data for 2004-2006 is given in the chart here. If  [#permalink]

### Show Tags

01 Nov 2019, 07:57
2
Bunuel wrote:

A firm's financial data for 2004-2006 is given in the chart here. If average costs are expected to be 25% higher over the next 5 year period, what must its average revenue be for 2007-2011 so that the overall average profit will be 1000?

A. 1270
B. 1540
C. 2140
D. 2290
E. 2420

Are You Up For the Challenge: 700 Level Questions

Attachment:
Untitled.png

Average cost per year = (400 + 900 + 500)/3 = 1800/3 = 600
Average cost for next 5 years = 25% more than 5 years cost = 1.25*(5*600) = 1.25*3000 = 3750

Let the average revenue for 2007-11 = x
--> sum of revenue for 2007-11 = 5x

Average profit = 1000
--> Profit overall for 8 years (2004-11) = 8*1000 = 8000
--> Total revenue - Total cost = 8000
--> [(5x + 2100) - (3750 + 1800)] = 8000
--> 5x - 3450 = 8000
--> 5x = 11450
--> x = 2290

IMO Option D
GMAT Club Legend
Joined: 18 Aug 2017
Posts: 5738
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
Re: A firm's financial data for 2004-2006 is given in the chart here. If  [#permalink]

### Show Tags

02 Nov 2019, 02:57
from given data
total cost for 3 years= 1800 avg = 600
so for 5 years total 600*5 ; 3000 @ 25% increase = 3750
total cost for 8 years = 3750+1800 ; 5550
total Profit given for 8 years ; 1000*8 ; 8000
given revenue for 3 years = 2100
revenue for 5 years = 5x
we know Revenue- Cost price = Profit

5x+2100-5550=8000
solve for x = 2290
IMO D

Bunuel wrote:

A firm's financial data for 2004-2006 is given in the chart here. If average costs are expected to be 25% higher over the next 5 year period, what must its average revenue be for 2007-2011 so that the overall average profit will be 1000?

A. 1270
B. 1540
C. 2140
D. 2290
E. 2420

Are You Up For the Challenge: 700 Level Questions

Attachment:
Untitled.png
Re: A firm's financial data for 2004-2006 is given in the chart here. If   [#permalink] 02 Nov 2019, 02:57
Display posts from previous: Sort by

# A firm's financial data for 2004-2006 is given in the chart here. If

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

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne