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

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

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New post 01 Nov 2019, 06:18
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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


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Re: A firm's financial data for 2004-2006 is given in the chart here. If  [#permalink]

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New post 01 Nov 2019, 07:57
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Bunuel wrote:
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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
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Re: A firm's financial data for 2004-2006 is given in the chart here. If  [#permalink]

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New post 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:
Image
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
GMAT Club Bot
Re: A firm's financial data for 2004-2006 is given in the chart here. If   [#permalink] 02 Nov 2019, 02:57
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