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21 Jul 2010, 16:59
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Difficulty:
35%
(medium)
Question Stats:
78% (02:27) correct
22%
(02:48)
wrong
based on 4703
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A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996 ?
(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3
(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3
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A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3
Let the revenue from cars in 1996 be \(c\) and revenue from trucks in 1996 be \(t\).
Total revenue in 1997 would be \(0.89c+1.07t\).
Also as total revenue in 1997 were up 1 percent from 1996, then total revenue in 1997 would be \(1.01(c+t)\).
Equate above two:
\(0.89c+1.07t=1.01(c+t)\)
\(\frac{c}{t}=\frac{1}{2}\).
Answer: A.
(A) 1:2
(B) 4:5
(C) 1:1
(D) 3:2
(E) 5:3
Let the revenue from cars in 1996 be \(c\) and revenue from trucks in 1996 be \(t\).
Total revenue in 1997 would be \(0.89c+1.07t\).
Also as total revenue in 1997 were up 1 percent from 1996, then total revenue in 1997 would be \(1.01(c+t)\).
Equate above two:
\(0.89c+1.07t=1.01(c+t)\)
\(\frac{c}{t}=\frac{1}{2}\).
Answer: A.
ritula
This is a weighted average question. Average of -11% and +7% is +1%.
Using w1/w2 = (A2 - Aavg)/(Aavg - A1),
we get w1/w2 = (7 - 1)/(1- (-11)) = 6/12
Revenue from Car:Revenue from Trucks = 1:2
