In 1994, Company X recorded profits that were 10% greater

Question

In 1994, Company X recorded profits that were 10% greater than in 1993, and in 1993 the company’s profits were 20% greater than they were in 1992. What were the company’s profits in 1992?

(1) In 1994, the company’s profits were $100,000 greater than in 1993.
(2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.

Bunuel · Accepted Answer

In 1994, Company X recorded profits that were 10% greater than in 1993, and in 1993 the company’s profits were 20% greater than they were in 1992. What were the company’s profits in 1992?

Profit in 1992 = x;
Profit in 1993 = 1.2x;
Profit in 1994 = 1.1*1.2x = 1.32x;

(1) In 1994, the company’s profits were $100,000 greater than in 1993 --> 1.1*1.2x=1.2x+100,000 --> we can find x. Sufficient.

(2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994 --> for every $1 in 1992 the company earned $1.32 in 1994. We already knew that. Not sufficient.

Answer: A.

P.S. Please read carefully and follow: rules-for-posting-please-read-this-before-posting-133935.html Pay attention to the rule #3: the name of a topic (subject field) MUST be the first 40 characters (~the first two sentences) of the question.

Marcab · Answer

The relation can be written as p(1.2)(1.1) for profits in 1994 and p for 1992.
P=?
Statement 1-
Hence p{(1.2)(1.1)-1.2}=given.
P can be easily calculated.

statement 2 is clearly insufficient.

+1A

unceldolan · Answer

(1) %-change = change amount / orig. amount => 10 % = 100.000 $ / orig. (1993) --> can calculate back to 1992. Suff.
(2) for every 3 $ in1992, we get 3.94 $ in 1994. Only percent change. nothiung about total amount. IS.

Hence A

AK92 · Answer

Let the respective profits be x for the year 92' and 1.2x for 93' and 1.32x for 94', as we deal with successive percents.
Now in order to solve the stems must provide us whether with the value of x or any other numerical value for one of the three years or any other years in order to solve the question as we are basically looking for a 1V1E, 1 variable 1 equation--> we can solve!
Going to statement 1) we can write the following equation 1.32x = x+100,000, you don't need to solve this as you see that you get one single numerical value for x and thus the statement is sufficient.
If you move on now to statement 2, you might think at first glance that it is sufficient as we get another relation. However, 2) delivers only redundant information, as it provides the same information given in the prompt. If you take the three expressions for the three years in terms of x and multiply by 3 you will get the same information. Thus the Answer to the question is A!

bumpbot · Answer

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In 1994, Company X recorded profits that were 10% greater

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In 1994, Company X recorded profits that were 10% greater

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