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30 May 2024, 11:01
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A
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Difficulty:
45%
(medium)
Question Stats:
72% (02:11) correct
28%
(02:18)
wrong
based on 965
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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.
(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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01 Jun 2024, 22:20
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Bunuel
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
General Discussion
31 May 2024, 15:26
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Bunuel
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.
