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The annual stockholders' report for Corporation X stated that profits

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The annual stockholders' report for Corporation X stated that profits  [#permalink]

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New post 21 Sep 2019, 07:45
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The annual stockholders' report for Corporation X stated that profits were up 10 percent over the previous year, although profits as a percent of sales were down 10 percent. Total sales for that year were approximately what percent of sales for the previous year?

A. 78%
B. 90%
C. 110%
D. 122%
E. 190%


PS17302.01
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Re: The annual stockholders' report for Corporation X stated that profits  [#permalink]

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New post 21 Sep 2019, 07:58
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Profit PY=100
Profit CY = 110
Profit PY/Sales PY = x
Profit CY/Sales CY =0.9x
110/sales CY= (100/sales PY)*0.9
Sales CY/Sales PY = 110/0.9*100 = 122%
IMO D


gmatt1476 wrote:
The annual stockholders' report for Corporation X stated that profits were up 10 percent over the previous year, although profits as a percent of sales were down 10 percent. Total sales for that year were approximately what percent of sales for the previous year?

A. 78%
B. 90%
C. 110%
D. 122%
E. 190%


PS17302.01
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Re: The annual stockholders' report for Corporation X stated that profits  [#permalink]

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New post 21 Sep 2019, 12:47
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gmatt1476 wrote:
The annual stockholders' report for Corporation X stated that profits were up 10 percent over the previous year, although profits as a percent of sales were down 10 percent. Total sales for that year were approximately what percent of sales for the previous year?

A. 78%
B. 90%
C. 110%
D. 122%
E. 190%


PS17302.01


The growth factor for a ratio is the ratio of the growth factor for the numerator to the growth factor for the denominator. The growth factor for the profit as a percent of sales is 0.9. The growth factor for the profit is 1.1. Let \(s\) be the growth factor for the sales.

\(0.9=\frac{1.1}{s}\)

\(s=\frac{1.1}{0.9}=\frac{11}{9}\approx 1.22=122\%\)

Answer: D
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The annual stockholders' report for Corporation X stated that profits  [#permalink]

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New post Updated on: 24 Oct 2019, 02:32
karishma,
Can you please help me understand the term 'Profit as a percent of sales' and the question on the whole?
Look forward!

Originally posted by swikrityC on 23 Oct 2019, 00:53.
Last edited by swikrityC on 24 Oct 2019, 02:32, edited 1 time in total.
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Re: The annual stockholders' report for Corporation X stated that profits  [#permalink]

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New post 24 Oct 2019, 02:28
i got exactly same question in gmat on 22nd october 2019
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Re: The annual stockholders' report for Corporation X stated that profits  [#permalink]

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New post 05 Nov 2019, 21:23
Determining profit as a percent of sales will ultimately tell you how much of the total cost of the sale is income. The make the calculation, start with your overall sales figure. In this example, we will assume a total of 100,000 dollars in sales. If your costs to reach that sales figure are 15,000 dollars, that leaves an 85,000 dollar profit figure. Now divide the profit by the costs so 85,000 divided by 100,000 gives you .85, which is an 85-percent profit margin.

Hope this helps!!!
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Re: The annual stockholders' report for Corporation X stated that profits   [#permalink] 05 Nov 2019, 21:23
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