Bunuel wrote:

The following tables show the revenues and costs, in thousands of dollars, for a small company in the year 2007.

Suppose in the following year, 2008, the sales are the same value, and half of those sales are directly due to the 2007 investment in R&D. The revenue received from these sales would be what percent greater than the money invested in R&D?

A. 85%

B. 110%

C. 200%

D. 402%

E. 503%

Another approach, using easier numbers because the answer values are far apart:

1) Sales in 2008 (not shown) are the same as sales in 2007. Sales in 2008 = 753

2) Half of 2008 sales = ?*

2008 sales = 753

\(\approx{754}\)\(\frac{754}{2}= 377\)3) The revenue received from half of sales is what percent greater than amount invested in 2007 R&D?

Amount invested in R&D = 75

2008, half of sales, 377

\(\approx{375}\) "Percent greater than" = Percent change =

\(\frac{New-Old}{Old} * 100\)

\(\frac{375-75}{75}*100=\frac{300}{75}*100= 4*100 = 400\) %

Answer D

* This information is unnecessary: ". . . half of those [2008] sales are directly due to the 2007 investment in R&D." If the question were to ask about return on investment, then the source of half the 2008 sales would matter. Here, we just need half of 2007's sales (753).
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