A company sells two products, L and M. Last year, seventy percent of

Question

A company sells two products, L and M. Last year, seventy percent of the units sold were product L, and the price of product L was 25 percent greater than the price of product M. Approximately what percent of the total revenue the company received last year was from the sale of product L?
 
A. 15%
B. 25%
C. 35% 
D. 65%
E. 74%

HardWorkBeatsAll · Accepted Answer

We don't need to solve this. Given that price of L > price of M and that L constitutes 70% of sales, the answer has to be >70%.

Only (D) agrees.

Skywalker18 · Answer

Percentage of total units that is product L = 70 %
Price of product L = 25 percent greater than price of product M.
Now , we can consider this as a weighted average scenario .
If the price of both the products L and M was equal , then contribution of product L to total sales would be = 70%
But since , price of product L is greater than M , then contribution of product L to total sales will be greater than 70% 
The only option is 74%

Answer E

CounterSniper · Answer

price of L =1.25 price of m
let L be 70 and m=30
let price for each unit of m =1 ,thus total from m=30
total from l =1.25*70=87.5
total revenue from both =117.50
share of L = (87.50/117.50) * 100 =74.4

appsy01 · Answer

Not an approach I recommend, but still we can solve this

Revenue of Product L =  \frac{5}{4} * 75 
Total Revenue =  \frac{5}{4} * 75 + 1 * 25

Taking Ratio =>
= ( \frac{5}{4} * 75) / ( \frac{5}{4} * 75 + 1 * 25 ) 
= \frac{5*75}{( 5*75 + 100)} 
= \frac{375}{475} = \frac{15}{19} = \frac{75}{95}  which approximately equals  \frac{74}{100}

EMPOWERgmatRichC · Answer

Hi HardWorkBeatsAll,

Your deduction here was fantastic - and you're correct, no math is required to answer this question if you can spot the pattern involved. This is a useful skill, but don't let your drive to work quickly keep you from doing enough work to avoid a silly mistake. You actually selected the WRONG answer.

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

bumpbot · Answer

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A company sells two products, L and M. Last year, seventy percent of

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A company sells two products, L and M. Last year, seventy percent of

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