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# Company Z only sells chairs and tables. what percent of its

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Intern
Joined: 25 Sep 2010
Posts: 18
Company Z only sells chairs and tables. what percent of its [#permalink]

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Updated on: 04 Jan 2013, 06:36
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Difficulty:

35% (medium)

Question Stats:

71% (01:14) correct 29% (01:13) wrong based on 391 sessions

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Company Z only sells chairs and tables. what percent of its revenue in 2008 did company derive from its sales of tables?

(1) In 2008, the average price of tables sold by company Z was 10% higher than the average price of chairs sold by Company Z?
(2) In 2008, Company Z sold 20% fewer tables than chairs.

Originally posted by satishreddy on 29 Oct 2010, 04:23.
Last edited by Bunuel on 04 Jan 2013, 06:36, edited 1 time in total.
Edited the question.
Math Expert
Joined: 02 Sep 2009
Posts: 46297
Re: DS question : need help [#permalink]

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29 Oct 2010, 04:35
6
7
satishreddy wrote:
Company Z only sells chairs and tables. what percent of its revenue in 2008 did company derive from its sales of tables?
1. In 2008, the average price of tables sold by company Z was 10% higher than the average price of chairs sold by Company Z?
2. In 2008, Company Z sold 20% fewer tables than chairs.

Revenue=number of items sold * price of an item.

$$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=?$$

(1) $$p_t=1.1*p_c$$. Not sufficient.
(2) $$n_t=0.8*n_c$$. Not sufficient.

(1)+(2) $$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=\frac{0.8*n_c*1.1*p_c}{0.8*n_c*1.1*p_c+n_c*p_c}=\frac{0.8*1.1}{0.8*1.1*+1}$$. Sufficient.

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Re: DS question : need help [#permalink]

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26 Dec 2013, 14:45
Bunuel wrote:
satishreddy wrote:
Company Z only sells chairs and tables. what percent of its revenue in 2008 did company derive from its sales of tables?
1. In 2008, the average price of tables sold by company Z was 10% higher than the average price of chairs sold by Company Z?
2. In 2008, Company Z sold 20% fewer tables than chairs.

Revenue=number of items sold * price of an item.

$$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=?$$

(1) $$p_t=1.1*p_c$$. Not sufficient.
(2) $$n_t=0.8*n_c$$. Not sufficient.

(1)+(2) $$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=\frac{0.8*n_c*1.1*p_c}{0.8*n_c*1.1*p_c+n_c*p_c}=\frac{0.8*1.1}{0.8*1.1*+1}$$. Sufficient.

dear Bunuel,
thanks for the explanation but I have a question:

$$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=?$$
is this part not going to be equal to 1?

many thanks
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Joined: 02 Sep 2009
Posts: 46297
Re: DS question : need help [#permalink]

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27 Dec 2013, 03:39
3111987 wrote:
Bunuel wrote:
satishreddy wrote:
Company Z only sells chairs and tables. what percent of its revenue in 2008 did company derive from its sales of tables?
1. In 2008, the average price of tables sold by company Z was 10% higher than the average price of chairs sold by Company Z?
2. In 2008, Company Z sold 20% fewer tables than chairs.

Revenue=number of items sold * price of an item.

$$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=?$$

(1) $$p_t=1.1*p_c$$. Not sufficient.
(2) $$n_t=0.8*n_c$$. Not sufficient.

(1)+(2) $$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=\frac{0.8*n_c*1.1*p_c}{0.8*n_c*1.1*p_c+n_c*p_c}=\frac{0.8*1.1}{0.8*1.1*+1}$$. Sufficient.

dear Bunuel,
thanks for the explanation but I have a question:

$$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=?$$
is this part not going to be equal to 1?

many thanks

No. $$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=\frac{x}{x+y}$$. This expression is not necessarily equal to 1.
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Re: Company Z only sells chairs and tables. what percent of its [#permalink]

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10 Oct 2017, 18:05
Hey guys,

i know this topic is frm 5 years ago, but i got stuck on MGMAT explanation.

Ok, I found how Rc and Rt are related, but I cant figure how it is conclusive to find how Rc is related for total revenue.

Since

Revenue = Rt + Rc

Rt = Qt x Pt

Rc = Qc x PC

And we found that Rt = 0.88 Rc

If I replace Rt in revenue equation my result will be

Revenue = 0.88 Rc + Rc

What could I conclude with this final equation??
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Posts: 1017
Location: India
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Re: Company Z only sells chairs and tables. what percent of its [#permalink]

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08 May 2018, 20:44
satishreddy wrote:
Company Z only sells chairs and tables. what percent of its revenue in 2008 did company derive from its sales of tables?
1. In 2008, theaverage price of tables sold by company Z was 10% higher than the average price of chairs sold by Company Z?
2. In 2008, Company Z sold 20% fewer tables than chairs.

Quote:
Revenue=number of items sold * price of an item.

$$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=?$$

(1) $$p_t=1.1*p_c$$. Not sufficient.
(2) $$n_t=0.8*n_c$$. Not sufficient.

(1)+(2) $$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=\frac{0.8*n_c*1.1*p_c}{0.8*n_c*1.1*p_c+n_c*p_c}=\frac{0.8*1.1}{0.8*1.1*+1}$$. Sufficient.

Bunuel niks18 gmatbusters

Average price = (Price per table or chair) / total no of table or chairs.
I could not understand how could you derive Eq 1 of St 1 without having an idea about individual quantity?
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Joined: 25 Feb 2013
Posts: 1144
Location: India
GPA: 3.82
Re: Company Z only sells chairs and tables. what percent of its [#permalink]

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08 May 2018, 21:34
1
satishreddy wrote:
Company Z only sells chairs and tables. what percent of its revenue in 2008 did company derive from its sales of tables?
1. In 2008, theaverage price of tables sold by company Z was 10% higher than the average price of chairs sold by Company Z?
2. In 2008, Company Z sold 20% fewer tables than chairs.

Quote:
Revenue=number of items sold * price of an item.

$$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=?$$

(1) $$p_t=1.1*p_c$$. Not sufficient.
(2) $$n_t=0.8*n_c$$. Not sufficient.

(1)+(2) $$\frac{n_t*p_t}{n_t*p_t+n_c*p_c}=\frac{0.8*n_c*1.1*p_c}{0.8*n_c*1.1*p_c+n_c*p_c}=\frac{0.8*1.1}{0.8*1.1*+1}$$. Sufficient.

Bunuel niks18 gmatbusters

Average price = (Price per table or chair) / total no of table or chairs.
I could not understand how could you derive Eq 1 of St 1 without having an idea about individual quantity?

here $$p_t$$ & $$p_c$$ are the average price of table and chair respectively or simply put they are the price of each table and chair. now it is assumed that $$n_t$$ & $$n_c$$ represent total number of tables and chairs.

So revenue = price per item * total number of items

Hence revenue from table $$= p_t*n_t$$

Also statement 1 gives you the relationship between average prices, so to derive the equation you need not require quantity.

the relationship between the prices will be $$p_t=1.1*p_c$$
Re: Company Z only sells chairs and tables. what percent of its   [#permalink] 08 May 2018, 21:34
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