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# The great garment company X was established in 1929. In 192

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Joined: 27 Oct 2017
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The great garment company X was established in 1929. In 192  [#permalink]

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14 Mar 2020, 18:16
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55% (hard)

Question Stats:

60% (01:07) correct 40% (00:40) wrong based on 23 sessions

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GMATBusters’ Quant Quiz Question -4

The great garment company X was established in 1929. In 1929, company X’s profit was what percent of its revenue?
A) In 1929, company X’s profit was 1/3 of its expenses.
B) In 1929, company X’s expenses were 3/4 of its revenue.

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Re: The great garment company X was established in 1929. In 192  [#permalink]

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14 Mar 2020, 18:48
The great garment company X was established in 1929. In 1929, company X’s profit was what percent of its revenue?
Profit = S.P. - C.P.
Revenue = no. of units sold * price of unit
We need to determine the numerical value.
A) In 1929, company X’s profit was 1/3 of its expenses. No information about revenue determined. Insufficient.
B) In 1929, company X’s expenses were 3/4 of its revenue. No information about profit determined. Insufficient.

A) + B) Let's assume, the profit = 33.33, then expenses = 100 and revenue = 400/3=133.33. We will not get the unique numerical value. So, insufficient.

Imo. E
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Re: The great garment company X was established in 1929. In 192  [#permalink]

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14 Mar 2020, 19:22
The great garment company X was established in 1929. In 1929, company X’s profit was what percent of its revenue?

A) In 1929, company X’s profit was 1/3 of its expenses.
B) In 1929, company X’s expenses were 3/4 of its revenue.

What we need:
Profit and Revenue of Company X in 1929.

We know that Profit = Revenue - Expenses. Let's see the answer choice

A) In 1929, company X’s profit was 1/3 of its expenses.

Lets substitute 300 for expenses , which gives 100 as profit.
Using the formula 100 = Revenue - 300.

Which gives Revenue = 400 and we can calculate Company's X profit was what percent of its revenue.

Option A alone is Sufficient.

B) In 1929, company X’s expenses were 3/4 of its revenue.

Expenses of the company X is 75% of its Revenue. So Profit = Revenue - Expenses. We get Profit = 100% - 75%. we can calculate Company's X profit was what percent of its revenue.

Option B alone is Sufficient

Ans: D
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Re: The great garment company X was established in 1929. In 192  [#permalink]

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14 Mar 2020, 20:19
Quote:
The great garment company X was established in 1929. In 1929, company X’s profit was what percent of its revenue?
A) In 1929, company X’s profit was 1/3 of its expenses.
B) In 1929, company X’s expenses were 3/4 of its revenue.

To Find out : Profit/Revenue=?

Type: Exact Value

Formula from real world = Profit = Revenue - Expenses

Statement 1) In 1929, company X’s profit was 1/3 of its expenses.

Profit = Expenses / 3
Expenses = 3 * Profit
We know Profit = Revenue - Expenses
Profit = Revenue - 3 * Profit
Revenue = 4 * Profit
Profit / Revenue = 1/ 4
Sufficeint.

B) In 1929, company X’s expenses were 3/4 of its revenue.

Expenses = (3*Revenue)/4

We know Profit = Revenue - Expenses

Profit = Revenue - (3*Revenue)/4

Profit = Revenue/ 4

Sufficeint.

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Re: The great garment company X was established in 1929. In 192  [#permalink]

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14 Mar 2020, 20:50
OA is D
As either statement alone is sufficient.
Statement one: profit is 1/3 of expenses. Let's expenses be 3 so profit will be 1
And revenue=profit+expenses
Revenue=3+1=4
(Sufficient)
Statement 2: Expense is 3/4 of revenue.
Let revenue be 4 and expense will be 3 so profit will be 1.
Giving same solution.(sufficient)
So either of the statement was sufficient.
OA is D

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Re: The great garment company X was established in 1929. In 192  [#permalink]

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15 Mar 2020, 00:11
Revenue-Expense = Profit

Let Profit = P, Expense = E, Revenue = R

Statement 1: P=$$\frac{E}{3}$$
So R = E+P = E+$$\frac{E}{3}$$
R = $$\frac{4E}{3}$$

P = x% of R
$$\frac{E}{3}$$ = $$\frac{x}{100}$$$$\frac{4E}{3}$$
x = 25

So Profit is 25% of Revenue
Sufficient

Statement 2: E = $$\frac{3}{4}$$R
P = R - E = R - $$\frac{3}{4}$$R
P = $$\frac{1}{4}$$R
P = 25% of R

Sufficient

Option: D
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Re: The great garment company X was established in 1929. In 192  [#permalink]

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15 Mar 2020, 01:26
Given: The great garment company X was established in 1929.

Asked: In 1929, company X’s profit was what percent of its revenue?

A) In 1929, company X’s profit was 1/3 of its expenses.
Revenues - Expenses = Profits = 1/3 * Expenses
Revenues = 4/3 Expenses = 4* Profits
Profits/Revenues = 1/4 = 25%
SUFFICIENT

B) In 1929, company X’s expenses were 3/4 of its revenue.
Revenues - Expenses = Profits
Revenues - 3/4 Revenues = Profits
1/4 Revenues = Profits
Profits / Revenues = 1/4 = 25%
SUFFICIENT

IMO D
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Re: The great garment company X was established in 1929. In 192  [#permalink]

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15 Mar 2020, 03:31
Statement 1-
p=r-e
given,p=e/3
p=r-3p
p/r=1/4
p/rx100=25% sufficient

Stat-2

given,e=3/4r putting in p=r-e
p/r=1/4
p/rx100=25% sufficient
Re: The great garment company X was established in 1929. In 192   [#permalink] 15 Mar 2020, 03:31