In 2003 Acme Computer priced its computers five times higher than its

Question

In 2003 Acme Computer priced its computers five times higher than its printers. What is the ratio of its gross revenue for computers and printers respectively in the year 2003?

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

(2) It sold each computer for $1000.

yashikaaggarwal · Accepted Answer

Cost of computer is 5times the cost of printers.

1) first half of year the printer and computers were sold at the ratio of 3y:2y
Second half of year the printer and computers were sold at the ratio of 2x:x

the ratio of its gross revenue for computers and printers respectively in the year 2003 = (3y+2x)5/(2y+x)

We don't know the value of x and y to determine the ratio
(Insufficient)

2) computers were sold at the price of 1000$
The printers will be sold at the price of 200$
But what no. Of computers and printers were actually sold?
(Insufficient)

Combining both: the ratio of its gross revenue for computers and printers respectively in the year 2003 = (3y+2x)1000/(2y+x)200

We still don't know the value of x and y (insufficient)

IMO E

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VERBAL1 · Answer

(1) In the first half of 2003 it sold computers and printers in the ratio of 3:2, respectively, and in the second half in the ratio of 2:1.

Since we only know the proportion but not the price, it's difficult to calculate the profit figure.

(insufficient)

(2) It sold each computer for $1000.

Since the question stem states that Acme Computer priced its computers five times higher than its printers, price for

Price of computer = 5(price of printer) 
1000/5= 200

C for printer =200
C for computer =1000

But we only have prices for each, we need the total number of pieces sold to derive to revenue figures.

(Insufficient)

Taking A and B,

'computers and printers sold in the ratio of 3:2 in the first half '

3000+400 = 3400 in the first half

2000+ 200 = 2200 in the second half

3400+2200 = 5600 ...total revenue

OA :C

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suchita2409 · Answer

IMO A is sufficient.

We need to find the ratio of revenues not exact revenues
C is computers price.
P Is printers price.

C=5P.

For first 6 months ratio of sales c:p = 3:2
Let x be constant of ratios.

Ratio Revenue =
 (3x × 5p)/(p × 2x)

Ratio Revenue = 15/2
Similarly for other half year 
Ratio Revenue = 10/1

The constants are cancelling each other .
We can add the 2 ratios to get final ratios.

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dep · Answer

IMO A

C = 5P
Ratio of gross revenue = c*x/y*p = 5p*x/p*y = 5x/y
CONDITION I:
ratio was 3/2+2 =5/2 
Hence Gross ratio = 5*5/2
SUFFICIENT
Condition II :
Cost of computer is given which has no bearing on total 
no of computers and printers sold
Insufficient

Trest · Answer

(1) If it were just one ratio for the whole year then we could calculate it. But because it is split into first half and second half, then we would need to know the amounts. Let’s say the company sold 300 computers and 200 computers in first half of the year. And then in the second half of the year, the company could have sold 200 more computers and 100 more printers. But it could also have sold 400 more computers and 200 more printers. That would make a huge difference when we add the two half years together. (Insufficient)

(2) This tells us nothing about the number of computers or printers sold which we need, since we already know the price ratio. (Insufficient)
Combined - cannot solve either. statement (2) does not help (Insufficient)

Answer: E

(2) This tells us nothing about the number of computers or printers sold which we need, since we already know the price ratio. (Insufficient)
Combined - cannot solve either. statement (2) does not help (Insufficient)

Answer: E

GMATGuruNY · Answer

Statements combined:
Consider EXTREMES.

Case 1: 3,000,000 computers and 2,000,000 printers sold in the first half, 2 computers and 1 printer sold in the second half
In this case, the SECOND half of the year has virtually no effect on the revenue ratio.
As a result, the revenue ratio is determined almost solely by the number of units sold in the FIRST half of the year.

Case 2: 3 computers and 2 printers sold in the first half, 2,000,000 computers and 1,000,000 printers sold in the second half
In this case, the FIRST half of the year has virtually no effect on the revenue ratio.
As a result, the revenue ratio is determined almost solely by the number of units sold in the SECOND half of the year.

Since each case will yield different revenue ratios, the two statements combined are INSUFFICIENT.

E

KartikSingh09 · Answer

Given C = 5P ( Cost of computer) Can't we dumb down the question prompt to 
 \frac{Rev from Computer}{Rev from Printers}  = \frac{ no. sold * 5P}{no. sold * P}  
and we need the no. of Computers and printers sold from the statements

1) Statement 1 tells us the ratios  \frac{3x}{2x}  and  \frac{2x}{1x}  and x(i.e. no. of products sold) is unknown so INSUFFICIENT
2) Statement 2 tells us the values of C & subsequently of P but not of n so INSUFFICIENT

Am I wrong here?

Aayush0894 · Answer

In this Question, Instead of DS had it been a PS question and same statement would have been given.
Then if Price of a printer - x (Supposed)
Then price of the computer to be 6x or 5x?

As for computers, price is said to be five times higher than printers as higher than is mentioned and not 5 times.

I think it should be 6x.

If anyone could guide on the same.

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Gmathub · Answer

We already know about the ratio of prices. The only thing we need is the ratio of quantities sold.
In statement 1, we have ratios given for two halves separately. But to know overall ratio, we would need the ratio of quantities sold in each half, i.e. how many were sold in each half. We do not have this info. Hence insufficient.

Statement 2 also gives us nothing to know ratio of quantities. Not even the combination of two statements.

See the video solution:

https://www.youtube.com/watch?v=3CKEOmU ... L&index=10

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sujoykrdatta · Answer

We know that the price ratio is 5 : 1 (computers and printers) To know the revenue ratio, we only need to know the ratio of the number of computers and printers sold individually. From this reasoning itself, we can conclude that Statement II is neither necessary nor sufficient. From Statement I: We know the ratio of the number of computers and printers in the first half and also in the second half. However, these two ratios are independent of each other. What I mean by this is, that it may be that in the first half, the numbers are 30 and 20, while in the second half they are 200 and 100 (or any other number, for that matter). Thus, the two ratios CANNOT be combined. (To be able to combine these, we should have known the ratio of the total number of items sold in the two halves) Thus, Statement I is insufficient. Combining the statements also does not help. Answer E Try out my "GMAT Comprehensive Recorded Course", a streamlined program designed to transform how you approach the GMAT Focus Edition: https://oneclick-prep.trainercentralsit ... rehensive/

Omnoui · Answer

Hi  Bunuel , could you please explain what is wrong with his reasoning for statement 1 ?

In 2003 Acme Computer priced its computers five times higher than its

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