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@eggybezosGiven: Last year company A and company B produced the same product. 
Asked: Last year company A's revenue from the product was how many dollars greater than company B's revenue from the product?

Revenues = Price * Quantity
Revenues_A - Revenues_B = Price_A * Quantity_A - Price_B * Quantity_B

(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.
There is no information about volume or quantity of products sold by each company.
NOT SUFFICIENT

(2) Last year Company A sold 150 more units of the product than Company B sold.
There is no information about prices at which products were sold by each company.
NOT SUFFICIENT

(1) + (2) 
(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.
Price_A - Price_B = $2.25(2) Last year Company A sold 150 more units of the product than Company B sold.
­Quantity_A - Quantity_B = 150
Revenues_A - Revenues_B = Price_A * Quantity_A - Price_B * Quantity_B = (Price_B + 2.25)(Quantity_B +150) - Price_B * Quantity_B
= 2.25*Quantity_B + 150*Price_B + 337.5
Since Quantity_B & Price_B are unknown
NOT SUFFICIENT

IMO E
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gmatophobia

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.
 ­
­Statement 1 and Statement 2 individually are not sufficient as each Statement has one crucial piece of information missing.

In Statement 1, we do not have the number of products sold by Company A and Company B. Hence, we cannot find the revenue.

In Statement 2, the unit price of the product is not known. 

Hence, we can eliminate A, B, and D. 

Combined

Attachment:
Screenshot 2024-03-10 014153.png

  • Revenue of Company A : (x+2.25)(y+150) = xy + 150x + 2.25y + (2.25 * 150)
  • Revenue of Company B: xy

Difference in Revenue = Revenue of Company A - Revenue of Company B = 150x + 2.25y + (2.25 * 150)

As the values of 'x' and 'y' are not known, the statements combined do not help either to find the value of the difference in revenues between the two companies. 

Option E
 ­
­Why would both statements together nt be enough? Isn't know that each product is sold at 2.25 and that Company A sold 150 units than B, sufficient to deduce that they would have made $2.25 x 150 more in revenue? 
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Both statements together aren't sufficient because they leave two unknow variables.

Statement 1 is saying Company A sold each unit of the product at a price that was $2.25 greater than the price at which Company B. So this means Price of A= Price of B+2.25, You can't solve for the Price of A or Price of B with the given information

Statement 2 is saying Company A sold 150 more units of product than Company B sold, this would mean A=150+B. You could only solve for A or B if we know one of them, but since both are unknown, there are multiple answers that would satisfy the equation. If B=100 then A=150+100=250 or if B=1 then A=150+1=151

Therefore, even when combining both equations you have multiple unknowns and can't find if Company A's Revenue > Company B's Revenue, you could use values that make A>B and vice versa.
Danou
gmatophobia

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.
­
­Statement 1 and Statement 2 individually are not sufficient as each Statement has one crucial piece of information missing.

In Statement 1, we do not have the number of products sold by Company A and Company B. Hence, we cannot find the revenue.

In Statement 2, the unit price of the product is not known.

Hence, we can eliminate A, B, and D.

Combined

Attachment:
Screenshot 2024-03-10 014153.png

  • Revenue of Company A : (x+2.25)(y+150) = xy + 150x + 2.25y + (2.25 * 150)
  • Revenue of Company B: xy

Difference in Revenue = Revenue of Company A - Revenue of Company B = 150x + 2.25y + (2.25 * 150)

As the values of 'x' and 'y' are not known, the statements combined do not help either to find the value of the difference in revenues between the two companies.

Option E
­
­Why would both statements together nt be enough? Isn't know that each product is sold at 2.25 and that Company A sold 150 units than B, sufficient to deduce that they would have made $2.25 x 150 more in revenue?
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Hey Danou, in trying to solve this question fast... I thought the same.

On reflection, we are ask how much more has company A made vs B?

1) No quantity - eliminated; Only know price premium of $2.25
2) Quantity given of 150 - no price - eliminated
3) Both - eliminated because we don't know the actual price of the product what if the total price is $7.25 per product? this would mean company A earned 7.25 * 150 more NOT 2.25 * 150
Danou
gmatophobia

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.
­
­Statement 1 and Statement 2 individually are not sufficient as each Statement has one crucial piece of information missing.

In Statement 1, we do not have the number of products sold by Company A and Company B. Hence, we cannot find the revenue.

In Statement 2, the unit price of the product is not known.

Hence, we can eliminate A, B, and D.

Combined

Attachment:
Screenshot 2024-03-10 014153.png

  • Revenue of Company A : (x+2.25)(y+150) = xy + 150x + 2.25y + (2.25 * 150)
  • Revenue of Company B: xy

Difference in Revenue = Revenue of Company A - Revenue of Company B = 150x + 2.25y + (2.25 * 150)

As the values of 'x' and 'y' are not known, the statements combined do not help either to find the value of the difference in revenues between the two companies.

Option E
­
­Why would both statements together nt be enough? Isn't know that each product is sold at 2.25 and that Company A sold 150 units than B, sufficient to deduce that they would have made $2.25 x 150 more in revenue?
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But B would have made 5*150 and the question is not how much revenue in total but " revenue from the product was how many dollars greater than" hence it would still be the same value of 150*2.25. I don't get why it is not C
nosaj
Hey Danou, in trying to solve this question fast... I thought the same.

On reflection, we are ask how much more has company A made vs B?

1) No quantity - eliminated; Only know price premium of $2.25
2) Quantity given of 150 - no price - eliminated
3) Both - eliminated because we don't know the actual price of the product what if the total price is $7.25 per product? this would mean company A earned 7.25 * 150 more NOT 2.25 * 150
Danou
gmatophobia

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.
­
­Statement 1 and Statement 2 individually are not sufficient as each Statement has one crucial piece of information missing.

In Statement 1, we do not have the number of products sold by Company A and Company B. Hence, we cannot find the revenue.

In Statement 2, the unit price of the product is not known.

Hence, we can eliminate A, B, and D.

Combined

Attachment:
Screenshot 2024-03-10 014153.png

  • Revenue of Company A : (x+2.25)(y+150) = xy + 150x + 2.25y + (2.25 * 150)
  • Revenue of Company B: xy

Difference in Revenue = Revenue of Company A - Revenue of Company B = 150x + 2.25y + (2.25 * 150)

As the values of 'x' and 'y' are not known, the statements combined do not help either to find the value of the difference in revenues between the two companies.

Option E
­
­Why would both statements together nt be enough? Isn't know that each product is sold at 2.25 and that Company A sold 150 units than B, sufficient to deduce that they would have made $2.25 x 150 more in revenue?
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vanacore

Yes, but that is only incremental revenue from the product due to the pricing difference. There were still a total of 150 units more from the product as such they made 150 units more of the product.

So how many dollars greater than = 150 * 2.25 + 150 * whatever Company B charges - is how much they made in total which was more
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Assumed this was d? surely if question is what is difference in revenue between a and b (with revenue being price x quantity), and you have revenue difference per unit and then difference in number of units, you can solve? read through workings above and still not sure why couldn't be d. if anyone could explain - ty!
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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.
­
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If Company B sold 50 units at 5/- and A sold 200 at 7.25/- Revenue of B will be 250 and A will be 1450. (Difference 1200)
Contrasting, is B sold 100 at 10/- and A sold 250 at 12.25/- Revenue of B will be 1000 and A will be 3062 (Difference 2062)

No Single Answer, Hence E
Danou

­Why would both statements together nt be enough? Isn't know that each product is sold at 2.25 and that Company A sold 150 units than B, sufficient to deduce that they would have made $2.25 x 150 more in revenue?
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