Marketing executives for a certain chewing gum company

Question

Marketing executives for a certain chewing gum company projected a 20 percent increase in revenue this year over that of last year, but revenue this year actually decreased by 25%. What percent of the projected revenue was the actual revenue ?

A. 53%
B. 58%
C. 62.5%
D. 64%
E. 75%

Need some quick approach ..thanks !

A. 53%
B. 58%
C. 62.5%
D. 64%
E. 75%

Need some quick approach ..thanks !

Bunuel · Answer

Last year revenue = 100 (assume);
This year revenue = 75;
Projected revenue = 120.

Actual/Projected*100=75/120*100 = 62.5%.

Answer: C.

Hope it's clear.

guerrero25 · Answer

Thanks Bunuel Wow! this was so easy. I think its the fatigue that got into me. I Could not even recognize a simple problem . . . I am hitting the hey now :roll:

Nunuboy1994 · Answer

We can solve this question using a concise algebraic approach

x(.75) = a 25% decrease of X 
x(1.2) = a 20% increase of X

Using algebra we don't even need to plug in numbers

".75 is what percent of 1.2" is essentially the question

75 * 100 = 120x 
 7500=120x
 7500/120=x
 62.5 = x

EMPOWERgmatRichC · Answer

Hi All,

We're told that marketing executives for a certain chewing gum company projected a 20 percent INCREASE in revenue this year over that of last year, but revenue this year actually DECREASED by 25%. We're asked what percent of the projected revenue was the actual revenue. This question can be solved in a couple of different ways, including by TESTing VALUES.

IF... last year's revenues were $100 
then the PROJECTED revenues this year were $100 + (.2)($100) = $120 
and the ACTUAL revenues this year were $100 - (.25)($100) = $75

The actual revenue, relative to the projected revenue, was $75/$120 = 15/24 = 5/8 = 62.5%

Final Answer:  C

GMAT assassins aren't born, they're made, 
Rich

ScottTargetTestPrep · Answer

We can let revenue last year = 100.

Projected revenue was 1.2 x 100 = 120, and actual revenue was 100 x 0.75 = 75.

Thus, actual/projected = 75/120 = 25/40 = ⅝ = 62.5%.

Answer: C

Marketing executives for a certain chewing gum company

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Marketing executives for a certain chewing gum company

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