In 1998 the profits of company N were 10 percent of revenues. In 1999,

Question

In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998?

A. 80%
B. 105%
C. 120%
D. 124.2%
E. 138%

A. 80% 
B. 105% 
C. 120% 
D. 124.2% 
E. 138%

BrainLab · Answer

0,12R = x/100*0.1R
Answer C

EMPOWERgmatRichC · Answer

Hi All,

This question can be solved either algebraically or by TESTing VALUES.

We're told that, in 1998, profits were 10% of revenues....

Let's TEST:
1998
Revenues= $100
Profits = $10

Next we're told that, in 1999, revenue FELL by 20%, but profits were 15% of revenues. Using the numbers from 1998 (above), we end up with...

1999
Revenues = $80
Profits = $12

We're asked to compare the profits in 1999 to the profits in 1998 (as a percentage):

$12/$10 = 1.2 = 120%

Final Answer:  C

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

ehsan090 · Answer

Take simple numbers
98--100--10 $--10%
99--80--12$--15%(80 since revenue fell by 20%)
x=12/10*100
x=12*10
x=120%

sashiim20 · Answer

In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998?
A. 80%
B. 105%
C. 120%
D. 124.2%
E. 138%

Let 1998 revenue be = 100
1998 Profits = 10% of revenue = 10% of 100 =$\frac{10}{100}$ x 100 = 10
1999 revenue = revenue fell by 20% of 1998 revenue = 80% of 100 = $\frac{80}{100}$ x 100 = 80
1999 Profits = 15% of 1999 revenue = 15% of 80 = $\frac{15}{100}$ x 80 = 12
Required fraction = 1999 Profits / 1998 Profits x 100 = $\frac{12}{10}$ x 100 = 120%
Answer C...

_________________
Kindly press "+1 Kudos" to appreciate

Nunuboy1994 · Answer

We can apply a few formulas to solve this problem

$100(.1) = $10 profit in 1998

$100(.8)(.15) = $12 profit in 1999

new-old/ old = $12-$10/$10

120%

Thus 
 "C"

ScottTargetTestPrep · Answer

We can let the revenues in 1998 = 100. Thus, the profits in 1998 = 100 x 0.1 = 10, the revenues in 1999 = 100 x 0.8 = 80, and the profits in 1999 = 80 x 0.15 = 12. Therefore, the profits in 1999 were 12/10 x 100 = 120 percent of the profits in 1998.

Answer: C

In 1998 the profits of company N were 10 percent of revenues. In 1999,

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

In 1998 the profits of company N were 10 percent of revenues. In 1999,

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards