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An owner of a theater reduced the price of tickets by 20%. This increa

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An owner of a theater reduced the price of tickets by 20%. This increa [#permalink] New post   Updated on: 28 Sep 2018, 04:10
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An owner of a theater reduced the price of tickets by 20%. This increased the number of tickets sold by 40%. The theater's monthly sales revenue increased by $16800. What was the monthly sales revenue before the change was implemented?

A) $100,000
B) $110,000
C) $120,000
D) $130,000
E) $140,000
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E

Originally posted by reynaldreni on 28 Sep 2018, 04:08.
Last edited by Bunuel on 28 Sep 2018, 04:10, edited 1 time in total.
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Re: An owner of a theater reduced the price of tickets by 20%. This increa [#permalink] New post   28 Sep 2018, 06:05
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reynaldreni wrote:
An owner of a theater reduced the price of tickets by 20%. This increased the number of tickets sold by 40%. The theater's monthly sales revenue increased by $16800. What was the monthly sales revenue before the change was implemented?

A) $100,000
B) $110,000
C) $120,000
D) $130,000
E) $140,000


Let earlier Price = P
new Price = 0.8 P

Let Earlier Tickets sold = T
Now Tickets sold = 1.4T

Revenue earlier = P*T
Revenue Now = 0.8P*1.4T = 1.12 PT

Increase in revenue = 0.12PT = 16800

PT = $140,000

Answer: Option E

Bunuel Please shift question to PS forum

reynaldreni Please post the questions in respective forums from next time. For more information on rules of Posting please read the rules first
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Re: An owner of a theater reduced the price of tickets by 20%. This increa [#permalink] New post   28 Sep 2018, 08:58
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GMATinsight wrote:
reynaldreni wrote:
An owner of a theater reduced the price of tickets by 20%. This increased the number of tickets sold by 40%. The theater's monthly sales revenue increased by $16800. What was the monthly sales revenue before the change was implemented?

A) $100,000
B) $110,000
C) $120,000
D) $130,000
E) $140,000


Let earlier Price = P
new Price = 0.8 P

Let Earlier Tickets sold = T
Now Tickets sold = 1.4T

Revenue earlier = P*T
Revenue Now = 0.8P*1.4T = 1.12 PT

Increase in revenue = 0.12PT = 16800

PT = $140,000

Answer: Option E

Bunuel Please shift question to PS forum

reynaldreni Please post the questions in respective forums from next time. For more information on rules of Posting please read the rules first

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Re: An owner of a theater reduced the price of tickets by 20%. This increa [#permalink] New post   28 Sep 2018, 09:37
The algebraic approach is to set the final revenue to be = 1.12x

Where x = initial revenue

1.12x = x + 16,800

So 0.12x = 16,800

3/25x = 16,800

X = 140,000

Also another way would be to pick a number

From the answer choices and multiply it by 1.12

For example if we pick answer choice D) 130,000

130,000 * 1.12 = 145,600 - 130,000 = 15,600 which is less than 16,800 so the answer choice would be a number larger than that and from that we can safely pick E.

If we try it 140,000 * 1.12 = 156,800 - 140,000 = 16,800

Answer choice E.

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Re: An owner of a theater reduced the price of tickets by 20%. This increa [#permalink]
28 Sep 2018, 09:37
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