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

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

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New post 24 Nov 2015, 11:04
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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

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

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New post 24 Nov 2015, 11:12
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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
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Re: In 1985 a company sold a brand of shoes to retailers for a fixed price  [#permalink]

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New post 24 Nov 2015, 11:39
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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 2412 times ]


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

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New post 08 Sep 2017, 03:09
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)
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Re: In 1985 a company sold a brand of shoes to retailers for a fixed price  [#permalink]

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New post 11 Sep 2017, 15:59
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
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Re: In 1985 a company sold a brand of shoes to retailers for a fixed price  [#permalink]

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Re: In 1985 a company sold a brand of shoes to retailers for a fixed price   [#permalink] 04 Oct 2018, 11:20
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