GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 23 May 2019, 23:00

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

If prices are reduced 25% and sales increase 20%, what is the net eff

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

Hide Tags

 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 55277
If prices are reduced 25% and sales increase 20%, what is the net eff  [#permalink]

Show Tags

New post 27 Feb 2018, 23:52
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

76% (01:09) correct 24% (02:02) wrong based on 52 sessions

HideShow timer Statistics

Intern
Intern
User avatar
B
Joined: 23 May 2015
Posts: 24
Re: If prices are reduced 25% and sales increase 20%, what is the net eff  [#permalink]

Show Tags

New post 27 Feb 2018, 23:58
Let the price be $100
And sales be 100 units

New Price = $75
New sales = 120

Therefore
{(75*120)-(100*100)}/(100*100)
=- 10%
So answer should be E .
Decrease by 10%



To win the Game , Be in the Game
Please give Kudos for right Answers
_________________
PLEASE PRESS KUDOS FOR CORRECT ANSWERS AND IF IT HELPS :-)
Intern
Intern
avatar
B
Joined: 22 Aug 2017
Posts: 12
Re: If prices are reduced 25% and sales increase 20%, what is the net eff  [#permalink]

Show Tags

New post 28 Feb 2018, 16:03
1
Multiplier method.

25% discount = 0.75 multiplier
20% increase = 1.2 multiplier

1.2 * 0.75 = 0.90 [If the product of two multipliers is less than 1, it is a decrease]

1-0.90 = 10%
Manager
Manager
avatar
B
Joined: 27 Nov 2015
Posts: 97
GMAT ToolKit User
Re: If prices are reduced 25% and sales increase 20%, what is the net eff  [#permalink]

Show Tags

New post 06 Jan 2019, 01:40
If prices are reduced 25% and sales increase 20%, what is the net effect on gross receipts?

(A) They increase by 5%.

(B) They decrease by 5%.

(C) They remain the same.

(D) They increase by 10%.

(E) They decrease by 10%.

I thought this means that Sales=Price*Gross Receipts therefore 1.2S=0.75P*GR which leads to new GR of 1.6, which is 60% higher than current GR. Still scratching head as to where I went wrong
GMAT Club Bot
Re: If prices are reduced 25% and sales increase 20%, what is the net eff   [#permalink] 06 Jan 2019, 01:40
Display posts from previous: Sort by

If prices are reduced 25% and sales increase 20%, what is the net eff

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


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.