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guddo
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Solomon leases space for his barber shop, and his landlord has 30 May 2024, 11:01
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45% (medium)

Question Stats:

73% (02:11) correct 27% (02:19) wrong based on 419 sessions

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­Solomon leases space for his barber shop, and his landlord has recently increased the rent by 40%. Solomon wants to increase his monthly revenue to pay the increased rent without affecting his net income. By what percentage must he increase his revenue?

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

(2) The new rent is $50 more than the previous rent.
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stne
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Solomon leases space for his barber shop, and his landlord has 31 May 2024, 15:26
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Bunuel
­Solomon leases space for his barber shop, and his landlord has recently increased the rent by 40%. Solomon wants to increase his monthly revenue to pay the increased rent without affecting his net income. By what percentage must he increase his revenue?

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

(2) The new rent is $50 more than the previous rent.
 
In this question: Income = revenue - rent expense.

Let old rent be \(r\) then new rent \(1.4r\)

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

Let revenue be \(x\) then \(.2x = r\) or \(x=5r\)

Therefore old income \(= x - r\) or \(5r-r = 4r \)

New income  \( 5r - 1.4r = 3.6r \)

Required % increase \(= \frac{ .4r}{3.6r}*100\)

SUFF.

(2) The new rent is $50 more than the previous rent.

\(.4r =50\) or \(r = 125\)

But we have no idea of his revenue.

INSUFF.

Ans A 

Hope it helped.­
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Bunuel
­Solomon leases space for his barber shop, and his landlord has recently increased the rent by 40%. Solomon wants to increase his monthly revenue to pay the increased rent without affecting his net income. By what percentage must he increase his revenue?

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

(2) The new rent is $50 more than the previous rent.
­We could continue working in percentages or take revenue as 100, as everything in the question statement deals with %.

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.
So, 20% of 100 or $20 was the rent earlier. The increased rent is 40% of 20 or $8.
Now, Solomon has to increase his salary by $8 or as a % = \(\frac{8}{100}*100\)% = 8%
Sufficient

(2) The new rent is $50 more than the previous rent.
So, 40% of the earlier rent is $50 or the rent was 125 earlier.
Nothing about income or revenue.
Insufficient

A
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Solomon leases space for his barber shop, and his landlord has 01 Jun 2024, 22:23
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Bunuel
­Solomon leases space for his barber shop, and his landlord has recently increased the rent by 40%. Solomon wants to increase his monthly revenue to pay the increased rent without affecting his net income. By what percentage must he increase his revenue?

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

(2) The new rent is $50 more than the previous rent.

 
In this question: Income = revenue - rent expense.

Let old rent be \(r\) then new rent \(1.4r\)

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

Let revenue be \(x\) then \(.2x = r\) or \(x=5r\)

Therefore old income \(= x - r\) or \(5r-r = 4r \)

New income  \( 5r - 1.4r = 3.6r \)

Required % increase \(= \frac{ .4r}{3.6r}*100\)

SUFF.

(2) The new rent is $50 more than the previous rent.

\(.4r =50\) or \(r = 125\)

But we have no idea of his revenue.

INSUFF.

Ans A 

Hope it helped.­
­You are absolutely correct with your answer. But, % increase in statement 1 is incorrect as you have calculated % increase in income, that too on new income, 3.6r.
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old rent = x
old revenue = r

income = revenue - rent

1) 20% of r = x
therefore, r = 5x

old income = r - x
old income= 5x = x => 4x

new Revenue = R
new income = R - 1.4x

Given to keep the income same or unaffected

old income = new income

4x = R - 1.4x
R = 5.4x

therefore % increase = (5.4x - x / x) * 100 => 8%

SUFFICIENT


2)1.4x = 50 + x
nothing can be said about revenue. NOT SUFFICIENT
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Solomon leases space for his barber shop, and his landlord has 28 Apr 2025, 12:35
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Income = REvenue - REnt

Let the Revenue be x

Old rent = r
New rent = 1.4r

(i) 0.2 * x = r
=> x = 5r

Increase in rent = 0.4r

% Increase in revenue = \(((old revenue + difference in rent) - old revenue)/ (old revenue)\) * 100
= \(((x + 0.4r) - x)/x *100\)
= \(0.4r/5r \) * 100
= 8 %
Sufficient

(ii)
If 40% increase is 50
We can calculate the old rent which would come to be 125
We cannot relate it to income or revenue and hence cannot calculate the % increase

Insufficient


Option A


guddo
­Solomon leases space for his barber shop, and his landlord has recently increased the rent by 40%. Solomon wants to increase his monthly revenue to pay the increased rent without affecting his net income. By what percentage must he increase his revenue?

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

(2) The new rent is $50 more than the previous rent.
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Solomon leases space for his barber shop, and his landlord has 06 May 2025, 05:08
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­Solomon leases space for his barber shop, and his landlord has recently increased the rent by 40%. Solomon wants to increase his monthly revenue to pay the increased rent without affecting his net income. By what percentage must he increase his revenue?

(1) 20% of his previous monthly revenue was used to pay the rent before the landlord increased it.

We can quickly answer this question without doing any calculations.

Since this statement tells us that rent was 20% of revenue and we know from the passage that rent has increased by 40%, we can see that, to maintain his net income, Solomon will have to increase his revenue by 40% of 20%.

Since 40% of 20% is a particular percentage of revenue, we could, though we won't, calculate the percent increase in revenue necessary for maintaining the same net income.

Sufficient.

(2) The new rent is $50 more than the previous rent.

In this case, we can see that we have no information on what percentage of revenue $50 is.

Insufficient.

Correct answer: A
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