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# The monthly revenue of Company A increased by 20 percent

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Senior Manager
Joined: 24 Jun 2012
Posts: 378
Location: Pakistan
GPA: 3.76
The monthly revenue of Company A increased by 20 percent  [#permalink]

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28 Jul 2017, 03:56
2
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Difficulty:

35% (medium)

Question Stats:

72% (01:54) correct 28% (01:52) wrong based on 82 sessions

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The monthly revenue of Company A increased by 20 percent over the same time period that the monthly revenue of Company B decreased by 25 percent. The reduced monthly revenue of Company B was what percent of the original monthly revenue of Company A?

(1) The original monthly revenue of Company A was equal to the original monthly revenue of Company B.
(2) The increased monthly revenue of Company A was 60 percent greater than the reduced monthly revenue of Company B

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Push yourself again and again. Don't give an inch until the final buzzer sounds. -Larry Bird
Success isn't something that just happens - success is learned, success is practiced and then it is shared. -Sparky Anderson
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Joined: 05 Nov 2016
Posts: 87
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

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28 Jul 2017, 09:12
Given Company A = 20% increase and company B 25% decrease.
ANew=120/100 * Aoriginal
Asked for BNew = what % of Aoriginal. We will look into the two points to evaluate the sufficient condition

1)
The original monthly revenue of Company A was equal to the original monthly revenue of Company B.
Assume AOriginal=BOriginal=100
ANew=120 Bnew=75

Bnew=x*Aoriginal
75=X*100
=> X=75%

2) The increased monthly revenue of Company A was 60 percent greater than the reduced monthly revenue of Company B
ANew=60% Bnew + Bnew
ANew=BNew(160/100)
120 * Aoriginal=BNew(160/100)
BNew=120*100/160*Aoriginal
=3/4*100*Aoriginal
BNew=75*Aoriginal
75% of Aoriginal

Thus C is the option
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Joined: 02 Nov 2015
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GMAT 1: 640 Q49 V29
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

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28 Jul 2017, 11:01
Each alone is sufficient. Both the options arrow down to the same conclusion that the original revenue of A and B were equal

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Senior Manager
Joined: 24 Jun 2012
Posts: 378
Location: Pakistan
GPA: 3.76
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

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28 Jul 2017, 11:14
1
Given Company A = 20% increase and company B 25% decrease.
ANew=120/100 * Aoriginal
Asked for BNew = what % of Aoriginal. We will look into the two points to evaluate the sufficient condition

1)
The original monthly revenue of Company A was equal to the original monthly revenue of Company B.
Assume AOriginal=BOriginal=100
ANew=120 Bnew=75

Bnew=x*Aoriginal
75=X*100
=> X=75%

2) The increased monthly revenue of Company A was 60 percent greater than the reduced monthly revenue of Company B
ANew=60% Bnew + Bnew
ANew=BNew(160/100)
120 * Aoriginal=BNew(160/100)
BNew=120*100/160*Aoriginal
=3/4*100*Aoriginal
BNew=75*Aoriginal
75% of Aoriginal

Thus C is the option

It is D
Statement 1 says that both companies revenue were same, sa it is X
the new revenue of A will be 1.2X and of B will be .75 X
we want to know reduced revenue of B/actual revenue of A = 0.75x/x

Statement 2 We now have a series of ratios. We can express the increased revenue of A and the reduced revenue of B in terms of the same variable, which means we can also express the original revenue of A in terms of that variable, which allows us to link the reduced revenue of B and the original revenue of A.
_________________
Push yourself again and again. Don't give an inch until the final buzzer sounds. -Larry Bird
Success isn't something that just happens - success is learned, success is practiced and then it is shared. -Sparky Anderson
-S
Senior Manager
Joined: 24 Jun 2012
Posts: 378
Location: Pakistan
GPA: 3.76
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

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28 Jul 2017, 11:20
1
statement 2 says that increased revenue of A is 60% greater than reduced revenue of B
let say old revenue of A = a and old revenue of B = b
A's revenue increased to 20% thus becomes 1.2a
B's revenue decreased to 25% and thus we can write it as 0.75b
Now statement says that 1.2 a = 60% of 0.75b + 0.75b
that means 1.2a = 1.2b
or in other words old revenue of a = old revenue of b
in other words both statements tell you the same thing
D it is
_________________
Push yourself again and again. Don't give an inch until the final buzzer sounds. -Larry Bird
Success isn't something that just happens - success is learned, success is practiced and then it is shared. -Sparky Anderson
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Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

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13 Apr 2019, 17:26
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Re: The monthly revenue of Company A increased by 20 percent   [#permalink] 13 Apr 2019, 17:26
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