Hi
Bunuel,
Please tell me if my below approach is correct?
I used numbers here.
With given quantities, I assumed,
Total Revenue = $10,000
Price per unit of Model A = $2
Price per unit of Model B = $4
Which Makes the revnue contribution of each as given, i.e. Model A= $6000 (60%) & Model B= $4000 (40%)
Now, if we reduce the qty of A by 1000, Revenue of Model A becomes $4000 and Total Revenue becomes $8000, hence percentage of monthly sales of Model A is 50%.
Bunuel
Official Solution:In November, a company sold 3,000 units of Model A and 1,000 units of Model B. Model A contributed 60% to the company's total monthly sales revenue in dollars, while Model B contributed the remaining 40%. If the company had sold 1,000 fewer units of Model A than they actually did, what percentage of the total monthly sales revenue in dollars would have been attributed to Model A? A. 48
B. 50
C. 52
D. 54
E. 55
Suppose the total sales revenue in November was $100. In this case, Model A contributed $60 and Model B contributed $40.
If the company had sold 1,000 fewer units of Model A than they actually did, it would have sold only 2,000 units of Model A. This is 2/3 of the units of Model A that were actually sold. Consequently, Model A would have contributed 2/3 of its original contribution, amounting to $40. In this scenario, the total revenue would have been $40 + $40 = $80. Therefore, 50% of the total monthly sales revenue in dollars would have been attributed to Model A.
Answer: B