Next year, sales of a new device are expected to add on 49% more reven

Question

Next year, sales of a new device are expected to add on 49% more revenue, bringing it to $73,606. The current revenue of the company is double of what it was in the previous year. What was the previous years revenue?

A. 12,350

B. 24,700

C. 37,050

D. 49,400

E. 61,750

A. 12,350

B. 24,700

C. 37,050

D. 49,400

E. 61,750

generis · Answer

The hitch in this question consists of keeping the language straight.

We have 
Last year's revenue ("previous year"),  R_0 
This year's revenue ("current" year),  R_1 
Next year's revenue,  R_2

NEXT year, revenue of $73,606 will be an increase of 49% (over THIS/"current" year, a time period that is somewhat vague but logically the only candidate).

NEXT year's revenue,  R_2  = this year's revenue  R_1  + 49% of this year  R_1

$73,606=1.49R_1 
 R_1=\frac{$73,606}{1.49}=$49,400

This year's revenue ("current revenue") is two times that of last year's revenue:
 $49,400=2* R_0 
 R_0=\frac{$49,400}{2}=$24,700

"Previous" year's revenue (last year's revenue) = $24,700

Answer B

If an equation such as 
 $79,606 = 1.49 R_1  shows up, the numbers will most likely "mesh" easily. That is, $79,606 is a multiple of 1.49

P.S. If working from the answer choices is a familiar strategy, using it may be wise because multiplication is usually much faster than long division. Alternatively, estimate.

blueviper · Answer

Solution:

This complicated problem can be solved easily without the use of heavy calculations.

If we glance over the answer choices, we can see that the answer choices are relatively spread out. So we can use approximation and convert.

49% to 50% or 1/2

73606 to 73500

Say this years revenue is R

Now the question says 150%*R = 73500

We can now easily solve for R = (73500 * 100)/150 = 49,000

Remember what the question asks for. The previous years revenue = 1/2 * 49,000 = 24,500

So, the correct option is B

Kudos if it helped

ErikLewe · Answer

In this question I would recommend you to avoid any heavy calculations. 
Look at the options: D and E are clearly more than half of 73 000.
C wont allow the 50% increase in sales.
A is many times too small for the increase + doubling. Quick answer is B. 
20s question.

+1 if helpful.

Abhishek009 · Answer

Present Years Revenue/Sales is  \frac{73606}{149}*100 = 49400

Previous Years Revenue/Sales is  \frac{49400}{2} = 24700 , Answer must be (B)

Next year, sales of a new device are expected to add on 49% more reven

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Next year, sales of a new device are expected to add on 49% more reven

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