blueviper wrote:
Next year, sales of a new device are expected to add on 49% more revenue, bringing it to $73,606. The current revenue of the company is double of what it was in the previous year. What was the previous years revenue?
A. 12,350
B. 24,700
C. 37,050
D. 49,400
E. 61,750
The hitch in this question consists of keeping the language straight.
We have
Last year's revenue ("previous year"), \(R_0\)
This year's revenue ("current" year), \(R_1\)
Next year's revenue, \(R_2\)
NEXT year, revenue of $73,606 will be an increase of 49% (over THIS/"current" year, a time period that is somewhat vague but logically the only candidate).
NEXT year's revenue, \(R_2\) = this year's revenue \(R_1\) + 49% of this year \(R_1\)
\($73,606=1.49R_1\)
\(R_1=\frac{$73,606}{1.49}=$49,400\)
This year's revenue ("current revenue") is two times that of last year's revenue:
\($49,400=2* R_0\)
\(R_0=\frac{$49,400}{2}=$24,700\)
"Previous" year's revenue (last year's revenue) = $24,700
Answer B
If an equation such as
\($79,606 = 1.49 R_1\) shows up, the numbers will most likely "mesh" easily. That is, $79,606 is a multiple of 1.49
P.S. If working from the answer choices is a familiar strategy, using it may be wise because multiplication is usually much faster than long division. Alternatively, estimate.
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