A social networking website reported x% higher profit this year

Question

A social networking website reported x% higher profit this year compared to last year. Is x greater than 10? (They made a profit in both years)

(1) The website has reported an increase of 5% in expenses.
(2) The website reported an increase of 10% in revenue.

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Abdelaali91 · Answer

let's pose P2 = profit of the year and P1= profit of the year before
P1=R1-C1
P2=R2-C2
then P2=((100+x)/100)P1
statement 1 only : C2=(105/100)C1 not sufficient to solve the problem.
statement 2 only : R2=(110/100)R1 net sufficient either

both statements: P2=R2-C2=(110/100)R1-(105/100)C1= (110R1-105C1+5C1-5C1)= (110P1+5C1)
we already know P2=((100+x)/100)P1 so ((100+x)/100)P1= (110P1+5C1)
Rearrange : 100+x-110=110+(5C1/P1)
because 5C1/P1>0 we get : 100+x-110>0 ie x>10

srik410 · Answer

1 or 2 is clearly insufficient.

For C,

Profit = Revenue - Expenses
If Revenue and Expenses both went up by 10%, then we have profits exactly at 10%(because of proportionality) ie 1.1P=1.1R-1.1E

But, given revenue went up 10% and Expenses went up 5%(ie not even 10%). Since less expenses have been deducted than proportional amount, we could always say that the profit is > 10%.

suntprovident · Answer

Take Two examples

Revenue = 101, Expense = 100
New Revenue = 111, Expense 105, Profit= 6

Revenue = 1000, Expense = 100
New Revenue = 1100, Expense = 105
Profit = 995

Both cases revenue increases more than 10% so bot statements together are sufficient.

PuRRforming · Answer

So i have a question. very basic one. the question here is, is x > 10?
the answer could be yes or no.
and i can conclude that with help of c. hence c should be the answer?
i might be wrong since i am completely new to this. guidance would help

Bunuel · Answer

There are two common types of Data Sufficiency questions: value questions and yes/no questions.

For a value question, the statement or statements are sufficient only if they allow you to determine one unique numerical value.

For a yes/no question, the statement or statements are sufficient if they allow you to give a definite “yes” or a definite “no.”

Here, the question is “Is x greater than 10?” Using statements (1) and (2) together, we can determine that x is definitely greater than 10. So the answer is definitely “yes,” which means the two statements together are sufficient.

Therefore, the answer is C.

A social networking website reported x% higher profit this year

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GMAT Data Sufficiency (DS) Questions

A social networking website reported x% higher profit this year

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

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