Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 25 May 2017, 14:26

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

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

M25 #33

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Manager
Joined: 30 Apr 2009
Posts: 134
Followers: 1

Kudos [?]: 98 [7] , given: 9

Show Tags

02 May 2009, 18:35
7
KUDOS
6
This post was
BOOKMARKED
If the circus were to sell all of its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month. If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue

(A) 2
(B) 5
(C) $$\frac{100}{21}$$
(D) $$\frac{110}{20}$$
(E) $$\frac{9}{4}$$

[Reveal] Spoiler: OA
C

Source: GMAT Club Tests - hardest GMAT questions

I dont understand what i am doing incorrectly, please help:

What i did is : I took Price for this month as 10$. Which gives me profit for this month -> 2200= 220*10, and profit for last month$2000 (since this month profit is 10% greater than last month profit. If the price is increased by 5% and the tickets sold are 200 than we have a profit of $2100=200*(10*1.05). Than the profit will be less by 5% -> 100/2000=0.05. No? Can you please explain to me what I'm doing incorrectly? _________________ Trying to make CR and RC my strong points "If you want my advice, Peter," he said at last, "you've made a mistake already. By asking me. By asking anyone. Never ask people. Not about your work. Don't you know what you want? How can you stand it, not to know?" Ayn Rand VP Joined: 08 Apr 2009 Posts: 1183 Concentration: General Management, Strategy Schools: Duke (Fuqua) - Class of 2012 Followers: 35 Kudos [?]: 447 [1] , given: 19 Re: M25 #33 [#permalink] Show Tags 03 May 2009, 14:30 1 This post received KUDOS I got 5% initially as well. But looking at the OA, I think it's a matter of misinterpreting the wording. 5% would be the percent less compare to last month's revenue (since 2000 is use for the denominator). 100/21 would be percent less compare to this month's revenue (100/2100*100%). That's just my two cents Manager Joined: 30 Apr 2009 Posts: 134 Followers: 1 Kudos [?]: 98 [0], given: 9 Re: M25 #33 [#permalink] Show Tags 04 May 2009, 07:24 Thank you! _________________ Trying to make CR and RC my strong points "If you want my advice, Peter," he said at last, "you've made a mistake already. By asking me. By asking anyone. Never ask people. Not about your work. Don't you know what you want? How can you stand it, not to know?" Ayn Rand Manager Joined: 27 Jun 2008 Posts: 158 Followers: 2 Kudos [?]: 30 [0], given: 11 Re: M25 #33 [#permalink] Show Tags 06 May 2009, 18:15 "what percent less would last month's revenue be compared to this month's revenue", yeah here's the trick. Intern Joined: 26 Feb 2009 Posts: 13 Location: Nairobi Schools: HBS Followers: 3 Kudos [?]: 15 [4] , given: 0 Re: M25 #33 [#permalink] Show Tags 14 Sep 2010, 05:07 4 This post received KUDOS 2 This post was BOOKMARKED Let last month revenue be 100 Therefore, this month revenue is (110/100) * 100 = 110 Usual ticket price is 110/220 = 1/2 Raised ticket price is (105/100) * (1/2) = 105/200 Total revenue after price raise is (105/200) * 200 = 105 Difference in revenue is 105-100 = 5 % difference is (5/105)*100 = 100/21 Intern Status: The second-most addictive physical activity is Googling. Joined: 12 Sep 2010 Posts: 6 Location: Rishikesh, India Schools: Princeton Followers: 0 Kudos [?]: 2 [1] , given: 0 Re: M25 #33 [#permalink] Show Tags 14 Sep 2010, 06:37 1 This post received KUDOS Going the algebra way, Let the price of a ticket be x. Since the ticket is sold at a usual price in both months, the tickets sold last month are 10% less than the tickets sold this month. Hence last month's revenue is -> 200x Since this month, the price of ticket is 5% more than last year's price. Hence, this month's revenue is -> 200 * 1.05 * x = 210x Difference in revenue is 10x. Therefore, Percentage Difference in Revenue (With respect to this month's revenue) is -> (10x/210x) * 100 =100/21 (Answer) @kt00381n: By the way, as asimov said, it was just the wording that confused you. Your calculations are correct. Just that the last calculation shall be '100/2100' instead of '100/2000'. Happiness! Manager Joined: 01 Apr 2010 Posts: 165 Followers: 3 Kudos [?]: 16 [0], given: 6 Re: M25 #33 [#permalink] Show Tags 14 Sep 2010, 09:23 thanks for the explanations... gud question on percents... Manager Joined: 03 Feb 2010 Posts: 68 Followers: 2 Kudos [?]: 123 [0], given: 4 Re: M25 #33 [#permalink] Show Tags 14 Sep 2010, 10:36 Percentage decrease is (new - old) / (old) So why isnt it (this month - last month) / (last month)? Manager Joined: 01 Apr 2010 Posts: 165 Followers: 3 Kudos [?]: 16 [0], given: 6 Re: M25 #33 [#permalink] Show Tags 14 Sep 2010, 11:37 numerator in ur formula is correct. denominator will be based on the basis of comparison. here the basis of comparison is this month's revenue (" compared to this month’s revenue"- last few words in the question states this) hope it is clear now. Intern Status: The second-most addictive physical activity is Googling. Joined: 12 Sep 2010 Posts: 6 Location: Rishikesh, India Schools: Princeton Followers: 0 Kudos [?]: 2 [1] , given: 0 Re: M25 #33 [#permalink] Show Tags 14 Sep 2010, 13:42 1 This post received KUDOS ksharma12 wrote: Percentage decrease is (new - old) / (old) So why isnt it (this month - last month) / (last month)? That is because in the question it is specifically mentioned in the last line that - "what percent less would last month’s revenue be compared to this month’s revenue", that is why are using $$\frac{\text{Difference}}{\text{This Month}}$$. Intern Joined: 07 Jul 2010 Posts: 13 Followers: 0 Kudos [?]: 8 [0], given: 3 Re: M25 #33 [#permalink] Show Tags 14 Sep 2010, 19:11 Revenue last month is 10% less than "potential revenue selling 220 tickets at usual price". Usual price means no price change compared to previous month. Hence 200 tickets were sold last month (10% less than 220). We can assume the total revenue of last month to be 200x (where x is the usual price). Let's x be 1. Hence 200 in revenue last month. Now this month the ticket price is raised by 5% and 200 are sold, hence 210 in revenue. Last month revenue is that much less of this month's revenue: (210-200)/210*100%=10/210*100%=100/21% Intern Joined: 02 Apr 2010 Posts: 48 Location: Mumbai Followers: 1 Kudos [?]: 6 [0], given: 0 Re: M25 #33 [#permalink] Show Tags 15 Sep 2010, 19:58 wording is the tricky part of the question. _________________ Consider kudos for good explanations. Manager Joined: 08 Sep 2011 Posts: 71 Concentration: Finance, Strategy Followers: 3 Kudos [?]: 2 [0], given: 5 Re: M25 #33 [#permalink] Show Tags 16 Sep 2011, 07:12 C 100/21. But I agree with the wording being tricky. I had to reread the question Manager Joined: 20 Nov 2010 Posts: 221 Followers: 4 Kudos [?]: 32 [1] , given: 38 Re: M25 #33 [#permalink] Show Tags 16 Sep 2011, 13:45 1 This post received KUDOS %dec = (New-old)/New = (105-100)/105 *100 = 100/21 _________________ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MGMAT 6 650 (51,31) on 31/8/11 MGMAT 1 670 (48,33) on 04/9/11 MGMAT 2 670 (47,34) on 07/9/11 MGMAT 3 680 (47,35) on 18/9/11 GMAT Prep1 680 ( 50, 31) on 10/11/11 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ CR notes http://gmatclub.com/forum/massive-collection-of-verbal-questions-sc-rc-and-cr-106195.html#p832142 http://gmatclub.com/forum/1001-ds-questions-file-106193.html#p832133 http://gmatclub.com/forum/gmat-prep-critical-reasoning-collection-106783.html http://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html http://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html?hilit=chineseburned Math Expert Joined: 02 Sep 2009 Posts: 38880 Followers: 7733 Kudos [?]: 106123 [1] , given: 11607 Re: M25 #33 [#permalink] Show Tags 27 Mar 2012, 02:36 1 This post received KUDOS Expert's post 1 This post was BOOKMARKED If the circus were to sell all of its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month. If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue? A. 2 B. 5 C. 100/21 D. 110/20 E. 9/4 For a percentage questions like this one, it's almost always better to plug some smart numbers. Let the usual price of a ticket be$20 (choose $20 because$20+5%=$21=integer, which will make calculations easier). This month's revenue for this price would be 220*$20=$4,400 and we are told that it's 10% greater than the revenue collected last month, hence the last month's revenue was$4,400/1.1=$4,000; Circus raised the ticket price by 5%, so the new price was$21 and the actual revenue from 200 tickets was 200*$21=$4,200;

What percent less would last month's revenue be compared to this month's revenue: $$percent=\frac{4,200-4,000}{4,200}*100=\frac{100}{21}%$$.

_________________
Senior Manager
Joined: 28 Dec 2010
Posts: 331
Location: India
Followers: 1

Kudos [?]: 229 [0], given: 33

Re: M25 #33 [#permalink]

Show Tags

26 May 2012, 11:51
shreychakravortyi used the algebraic method as well. However i screwed with calculating the percentage change. however, now i see that i must consciously tyr and use the picking no. strategy more often. Tend to rely too heavily on algebra.
Manager
Joined: 02 May 2012
Posts: 109
Location: United Kingdom
WE: Account Management (Other)
Followers: 0

Kudos [?]: 57 [0], given: 34

Re: M25 #33 [#permalink]

Show Tags

18 Sep 2012, 06:09
You might find it useful to use a bit of SC strategy here. What is being compared? This month's revenue. The compared item is always the denominator.

B.
_________________

In the study cave!

Intern
Status: Preparing for GMAT
Joined: 19 Sep 2012
Posts: 19
Location: India
GMAT Date: 01-31-2013
WE: Information Technology (Computer Software)
Followers: 1

Kudos [?]: 10 [1] , given: 8

Re: M25 #33 [#permalink]

Show Tags

19 Sep 2012, 21:13
1
KUDOS
Suppose Last month's Price = 100
If increase price by 5% =105
then sold 200 tickets i.e = 200 * 105 = 21000
if sold all 220 tickets for same 100 = 20000

so difference in revenue will be (21000 -20000)/21000 * 100

i.e 1 /21 *100 which is 100 /21.

)) cheers!!
_________________

Rajeev Nambyar
Chennai, India.

Intern
Joined: 26 Mar 2013
Posts: 23
Location: India
Concentration: Finance, Strategy
Schools: Booth PT '18 (S)
Followers: 0

Kudos [?]: 15 [2] , given: 2

Re: M25 #33 [#permalink]

Show Tags

17 Sep 2013, 14:36
2
KUDOS
Another algebraic way....which might help a few

P is usual price
TLM is Total last month
TTM is Total this month

220*P=TLM*1.1
200*P*1.05 = TTM

=> ratio of TLM to TTM is 1.05

Now we want,
(TLM - TTM)/TTM
=(1-1.05)/1.05---using the above ratio
=1/21

we want it in percent terms => (100/21)%

I Hope it helps..!
Senior Manager
Status: Student
Joined: 26 Aug 2013
Posts: 259
Location: France
Concentration: Finance, General Management
Schools: EMLYON FT'16
GMAT 1: 650 Q47 V32
GPA: 3.44
Followers: 2

Kudos [?]: 63 [0], given: 401

Re: M25 #33 [#permalink]

Show Tags

19 Sep 2013, 12:13
I have answer C.

I took price ticket equals 100 and then just did the maths
_________________

Think outside the box

Re: M25 #33   [#permalink] 19 Sep 2013, 12:13

Go to page    1   2    Next  [ 21 posts ]

Similar topics Replies Last post
Similar
Topics:
19 M25 #16 22 19 Jun 2014, 05:53
18 m25 #12 20 04 May 2014, 12:18
18 m25#02 29 28 Nov 2013, 22:20
27 m25 #22 21 07 Jul 2014, 04:13
17 M25 #29 23 12 Jul 2013, 19:51
Display posts from previous: Sort by

M25 #33

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

Moderator: Bunuel

 Powered by phpBB © phpBB Group and phpBB SEO 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®.