A Very Nice trap question....
Why not C..is the main problem here..since we get the difference in quantity and value?
After thinking through, here's why... What is actually happening that we are getting different answers.... Lets answer this
For Simple Lets assume Difference in quantity between A and B is 10 and price difference is 10 Rupees..
Case 1: A sells 20 Units at 20 each .B sells 10 Units....at 10 each..Difference in 400 - 300 = 100
Case 2. A sells 100 Units at 20 Each B sells 90 Units at 10 each Difference is 2000 - 900 = 1100 Units...
So Remember, the extra price which also accounts in the difference is dependent on the number of times it is being added.. (Means the number of units sold) When choose C..we are thinking that difference of price is just on the 150 Units (or in my example Just 10 Units)..While the difference is on ALL the units....
100 Units at 10 more makes the total of 1000 more ....
and 90 Units at 10 less .... reduces the price by 900...So the additional extra 100 is there....Thats why 1100...
We will solve it via equation Also
Sales = Quantity x Price
Quantity be = X
Price be = Y
therefore we have equation as.... (Y+2.25)(X+150) - XY ... We don't the X and Y..Thats the starting point.....
In the hypothetical example...we saw how extra amount is added to the number of products being sold...we will also see if the price varies and the Number stays the same
A - 20 products
B - 10 Products..
Difference in price be 10
Case 1
Price A - 110
Price B - 100
Revenue difference is ....2200 - 1000 = 1200
Case 2
Price A - 11
Price B - 1
Revenue A 20 x 11 = 220
Revenue B 1 x 10 = 10
Difference 210
So here..the number of times price differences is added makes the difference in the total value...
the difference of 10 when added 20 times is happening on each of the 20 products...So a total greater becomes 10 X 20.....= 2000... So there is extra 2000 then we assume it to be...We assume it to be just 10 X 10 ....
Hope I am clear....
Thanks
eggybezos
Last year company A and company B produced the same product. Last year company A's revenue from the product was how many dollars greater than company B's revenue from the product?
(1) Last year Company A sold each unit of the product at a price that was $2.25 greater than the price at which Company B sold each unit of the product.
(2) Last year Company A sold 150 more units of the product than Company B sold.