It is currently 16 Dec 2017, 07:10

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In 1985 a company sold a brand of shoes to retailers for a fixed price

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

Hide Tags

Expert Post
1 KUDOS received
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42628

Kudos [?]: 135818 [1], given: 12715

In 1985 a company sold a brand of shoes to retailers for a fixed price [#permalink]

Show Tags

New post 24 Nov 2015, 10:04
1
This post received
KUDOS
Expert's post
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

72% (01:23) correct 28% (01:43) wrong based on 111 sessions

HideShow timer Statistics

In 1985 a company sold a brand of shoes to retailers for a fixed price per pair. In 1986 the number of pairs of the shoes that the company sold to retailers decreased by 20 percent, while the price per pair increased by 20 percent. If the company’s revenue from the sale of the shoes in 1986 was $3.0 million, what was the approximate revenue from the sale of the shoes in 1985 ?

(A) $2.4 million
(B) $2.9 million
(C) $3.0 million
(D) $3.1 million
(E) $3.6 million
[Reveal] Spoiler: OA

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 135818 [1], given: 12715

1 KUDOS received
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 1848

Kudos [?]: 1071 [1], given: 90

Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: In 1985 a company sold a brand of shoes to retailers for a fixed price [#permalink]

Show Tags

New post 24 Nov 2015, 10:12
1
This post received
KUDOS
2
This post was
BOOKMARKED
Let the number of pairs of shoes sold in 1985 = N
let price per pair of shoe sold in 1985 = P

In 1986,number of pairs of shoes sold decreased by 20 % = .8N
Price per pair increased by 20% = 1.2P

Company's revenue from sale of shoes in 1986 = 3 million$
=> .8N * 1.2 P = 3
=>.96 NP = 3
=> NP = 3/.96 = 3.125 million $

Answer D
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Kudos [?]: 1071 [1], given: 90

1 KUDOS received
Board of Directors
User avatar
G
Status: QA & VA Forum Moderator
Joined: 11 Jun 2011
Posts: 3115

Kudos [?]: 1150 [1], given: 327

Location: India
GPA: 3.5
WE: Business Development (Commercial Banking)
GMAT ToolKit User Premium Member
Re: In 1985 a company sold a brand of shoes to retailers for a fixed price [#permalink]

Show Tags

New post 24 Nov 2015, 10:39
1
This post received
KUDOS
Bunuel wrote:
In 1985 a company sold a brand of shoes to retailers for a fixed price per pair. In 1986 the number of pairs of the shoes that the company sold to retailers decreased by 20 percent, while the price per pair increased by 20 percent. If the company’s revenue from the sale of the shoes in 1986 was $3.0 million, what was the approximate revenue from the sale of the shoes in 1985 ?

(A) $2.4 million
(B) $2.9 million
(C) $3.0 million
(D) $3.1 million
(E) $3.6 million


A am using a typical grid method of price, quantity and Revenue matrix

From the matrix we get

96 = 3mn
1 = 3/96 mn
100 = (3/96) * 100 => 3.125

Hence answer is D
Attachments

Revenue.PNG
Revenue.PNG [ 2.61 KiB | Viewed 1116 times ]


_________________

Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )

Kudos [?]: 1150 [1], given: 327

Non-Human User
User avatar
Joined: 09 Sep 2013
Posts: 14813

Kudos [?]: 288 [0], given: 0

Premium Member
Re: In 1985 a company sold a brand of shoes to retailers for a fixed price [#permalink]

Show Tags

New post 07 Sep 2017, 18:33
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

Kudos [?]: 288 [0], given: 0

Intern
Intern
avatar
B
Joined: 18 Mar 2015
Posts: 11

Kudos [?]: 1 [0], given: 65

CAT Tests
Re: In 1985 a company sold a brand of shoes to retailers for a fixed price [#permalink]

Show Tags

New post 08 Sep 2017, 02:09
Let in :1985
no of pairs=n
price/pair=m
revenue=mn
In 1986:
no of pairs=0.8n
price/pair=1.2m
revenue=0.96mn
so in 1985=3/0.96=3.125 (C)

Kudos [?]: 1 [0], given: 65

Expert Post
Target Test Prep Representative
User avatar
S
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 1945

Kudos [?]: 1022 [0], given: 3

Location: United States (CA)
Re: In 1985 a company sold a brand of shoes to retailers for a fixed price [#permalink]

Show Tags

New post 11 Sep 2017, 14:59
Bunuel wrote:
In 1985 a company sold a brand of shoes to retailers for a fixed price per pair. In 1986 the number of pairs of the shoes that the company sold to retailers decreased by 20 percent, while the price per pair increased by 20 percent. If the company’s revenue from the sale of the shoes in 1986 was $3.0 million, what was the approximate revenue from the sale of the shoes in 1985 ?

(A) $2.4 million
(B) $2.9 million
(C) $3.0 million
(D) $3.1 million
(E) $3.6 million


We can let the number of pairs of shoes sold in 1985 = n and the price per pair = p.

Thus, the revenue in 1985 is np and we can create the following equation for the revenue in 1986:

(0.8n)(1.2p) = 3,000,000

0.96np = 3,000,000

np = 3,125,000, which is roughly 3.1 million.

Answer: D
_________________

Scott Woodbury-Stewart
Founder and CEO

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Kudos [?]: 1022 [0], given: 3

Re: In 1985 a company sold a brand of shoes to retailers for a fixed price   [#permalink] 11 Sep 2017, 14:59
Display posts from previous: Sort by

In 1985 a company sold a brand of shoes to retailers for a fixed price

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


GMAT Club MBA Forum Home| About| Terms and Conditions| 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®.