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onedayill
Car Dealership X, the total profit from sales increased by 10 percent over the previous years, while the number of cars sold decreased by 10 percent over the previous years. Approximately what was the average percent increase in profit per car over the previous year.

18%
20%
22%
23%
25%

Let Profit be x and cars sold be y

Originally Profit/Car = x/y

Now it is 1.1x / 0.9 y = 11/9 (x/y)

Increase in profit per car = ((2/9) (x/y)) / (x/y) * 100 = 22.22%

Answer = C

Thanks
I got my mistake.
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I did this by putting numbers, I don't know if this approach is correct.

Previous Years - Number of cars be 10 , total profit be 100....

this year - Number of cars will be 9 , total profit will be 110..

Previous year ---- profit per car = 100/10 = 10
this year profit = 110/9 = 12.2
percent increase = 22%
answer C
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What is true in general will also be true in particular

Substituting numbers is perfectly fine
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(1.1p/.9c)/(p/c)=1.22=22% increase
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onedayill
Car Dealership X, the total profit from sales increased by 10 percent over the previous years, while the number of cars sold decreased by 10 percent over the previous years. Approximately what was the average percent increase in profit per car over the previous year.

A. 18%
B. 20%
C. 22%
D. 23%
E. 25%
Attachment:
Capture.JPG
Capture.JPG [ 12.95 KiB | Viewed 6770 times ]
Average increase in Price is \(\frac{12.22 - 10}{10} * 100\) ~ \(22\)%

Thus, the answer will be (C) 22.22%
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Hello from the GMAT Club BumpBot!

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