Bunuel wrote:
In the month of August, Pentheus Corporation made $200,000 in profit. Pentheus made 6% of that profit on the second Wednesday of August. If the profits that day were approximately 14.5% of the revenue for that day, then what was Pentheus’s revenue on the second Wednesday of August?
A. $65,536
B. $75,025
C. $77,922
D. $80,000
E. $82,756
Kudos for a correct solution.
In the month of August, Pentheus Corporation made $200,000 in profit. Pentheus made 6% of that profit on the second Wednesday of August. 1% of $200,000 = $2,000, so 6% of $200,000 = (6)($2,000) =
$12,000So, the profit on that day =
$12,000 If the profits that day were approximately 14.5% of the revenue for that day, then what was Pentheus’s revenue on the second Wednesday of August? Let R = the day's revenue.
So, we can write:
$12,000/R = 14.5/100
Cross multiply to get: 1,200,000 = 14.5R
So, R = 1,200,000/14.5
IMPORTANT: We COULD use long division to evaluate 1,200,000/14.5, but here's a faster route.
First recognize that 1,200,000/15 = 80,000
Since 14.5 is a little bit smaller than 15, we know that
1,200,000/14.5 will be a little bit greater than 80,000Answer: E
Cheers,
Brent
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Brent Hanneson – Creator of gmatprepnow.com
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