GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

It is currently 26 May 2020, 10:48

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Retired Moderator
User avatar
V
Joined: 27 Oct 2017
Posts: 1786
WE: General Management (Education)
GMAT ToolKit User CAT Tests
The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 14 Mar 2020, 18:16
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

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

HideShow timer Statistics

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.

_________________
Director
Director
avatar
V
Joined: 22 Feb 2018
Posts: 739
GMAT ToolKit User
Re: The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 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
Senior Manager
Senior Manager
User avatar
P
Joined: 31 May 2017
Posts: 412
GMAT ToolKit User Reviews Badge
Re: The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 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
_________________
VP
VP
User avatar
V
Joined: 18 Dec 2017
Posts: 1360
Location: United States (KS)
GMAT 1: 600 Q46 V27
Premium Member CAT Tests
Re: The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 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.

Answers Possible A and D

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

Same answer as Statement 1.

Sufficeint.

Final Answer D
_________________
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long

Why You Don’t Deserve A 700 On Your GMAT

Learn from the Legend himself: All GMAT Ninja LIVE YouTube videos by topic
You are missing on great learning if you don't know what this is: Project SC Butler
Senior Manager
Senior Manager
avatar
S
Joined: 18 Jan 2020
Posts: 285
Re: The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 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

Posted from my mobile device
Manager
Manager
avatar
B
Joined: 10 Jun 2018
Posts: 54
Re: The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 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
CEO
CEO
User avatar
V
Joined: 03 Jun 2019
Posts: 2891
Location: India
GMAT 1: 690 Q50 V34
WE: Engineering (Transportation)
Premium Member Reviews Badge CAT Tests
Re: The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 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
_________________
Kinshook Chaturvedi
Email: kinshook.chaturvedi@gmail.com
Manager
Manager
avatar
B
Joined: 11 Jun 2014
Posts: 65
CAT Tests
Re: The great garment company X was established in 1929. In 192  [#permalink]

Show Tags

New post 15 Mar 2020, 03:31
Answer:D
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
GMAT Club Bot
Re: The great garment company X was established in 1929. In 192   [#permalink] 15 Mar 2020, 03:31

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne