GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 25 May 2019, 12:54

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

The monthly revenue of Company A increased by 20 percent

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
Senior Manager
Senior Manager
User avatar
P
Joined: 24 Jun 2012
Posts: 378
Location: Pakistan
Concentration: Strategy, International Business
GPA: 3.76
GMAT ToolKit User Reviews Badge
The monthly revenue of Company A increased by 20 percent  [#permalink]

Show Tags

New post 28 Jul 2017, 03:56
2
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

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

HideShow timer Statistics

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

_________________
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
Manager
Manager
avatar
S
Joined: 05 Nov 2016
Posts: 87
GMAT ToolKit User
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

Show Tags

New post 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
_________________
Kudos are always welcome ... as well your suggestions
Manager
Manager
avatar
B
Joined: 02 Nov 2015
Posts: 163
GMAT 1: 640 Q49 V29
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

Show Tags

New post 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
Thus D is the answer.

Sent from my Lenovo TAB S8-50LC using GMAT Club Forum mobile app
Senior Manager
Senior Manager
User avatar
P
Joined: 24 Jun 2012
Posts: 378
Location: Pakistan
Concentration: Strategy, International Business
GPA: 3.76
GMAT ToolKit User Reviews Badge
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

Show Tags

New post 28 Jul 2017, 11:14
1
umadurga wrote:
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
Senior Manager
User avatar
P
Joined: 24 Jun 2012
Posts: 378
Location: Pakistan
Concentration: Strategy, International Business
GPA: 3.76
GMAT ToolKit User Reviews Badge
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

Show Tags

New post 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
-S
Non-Human User
User avatar
Joined: 09 Sep 2013
Posts: 11016
Re: The monthly revenue of Company A increased by 20 percent  [#permalink]

Show Tags

New post 13 Apr 2019, 17:26
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Club Bot
Re: The monthly revenue of Company A increased by 20 percent   [#permalink] 13 Apr 2019, 17:26
Display posts from previous: Sort by

The monthly revenue of Company A increased by 20 percent

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.