A certain company that sells only cars and trucks reported that in 200

Question

A certain company that sells only cars and trucks reported that in 2004, revenues from car sales were 20 % more than the revenues from truck sales. In 2005, if the revenues tram truck sales kept unchanged, were the revenues form car sales still greater than the revenue from truck sales?

(1) In 2005, the revenues from car sales were down less than 20 % from 2004.
(2) In 2005, the revenues from car sales were down more than 18 % from 2004.

(1) In 2005, the revenues from car sales were down less than 20 % from 2004.
(2) In 2005, the revenues from car sales were down more than 18 % from 2004.

Bunuel · Answer

A certain company that sells only cars and trucks reported that in 2004, revenues from car sales were 20 % more than the revenues from truck sales. In 2005, if the revenues tram truck sales kept unchanged, were the revenues form car sales still greater than the revenue from truck sales?

(1) In 2005, the revenues from car sales were down less than 20 % from 2004.
(2) In 2005, the revenues from car sales were down more than 18 % from 2004.

In 2004: 
{revenues from truck sales} = x.
{revenues from car sales} = 1.2x

In 2005: 
{revenues from truck sales} = x.
{revenues from car sales} = ?.

(1) In 2005, the revenues from car sales were down less than 20% from 2004. If the revenue from car sales were down by 0%, then the answer would be YES but if the revenue from car sales were down by 19%, then the answer would be NO (1.2x*0.81<x). Not sufficient.

(2) In 2005, the revenues from car sales were down more than 18% from 2004. Even if the revenue from car sales were down by only 18%, the revenue from car sales still would be less than x --> 1.2x*0.82<x. Sufficient.

Answer: B.

rohit8865 · Answer

take easy values for consideration Let revenues from truck sales in 2004 =Rs 100 revenues from car sales=Rs 120 . revenues from truck sales in 2005=Rs 100 revenues from car sales in 2005=?( Rs100) Statement(1) the revenues from car sales were down less than 20 % from 2004 say it was down 19%...19%less of 120=Rs 97.2 (97.2<100)...NO or it was down 1%...1%less of 120=Rs 118.8 (118.8>100)...YES. Not sufff.... (2) the revenues from car sales were down more than 18 % from 2004 even if you take a value 18.1% decreased it will be >Rs 100 120(1-18.1/100)=98.....it will always<100(truck sales revenue) suff... Ans B

Divyadisha · Answer

Let's say revenue from truck sales in 2004= 100
Revenue from car sales in 2004 = 120

(1) In 2005, the revenues from car sales were down less than 20 % from 2004.

If the revenues were 20% less. Then, the actual revenue would have been 120 - 120*20/100= 120-24

But since the revenues are down less then 20%, revenues can be 19% (<revenues by trucks) or 10% (>revenues by trucks)

Not sufficient.

(2) In 2005, the revenues from car sales were down more than 18 % from 2004.
if it were 18%, then the revenues would have been 120- 120*18/100= 120- 22 (approximately)

But since revenues were down more than 18 %; revenues were always less than 100, and less than revenues from trucks. Sufficient.

B is the answer

AdlaT · Answer

. SOLUTION: let t be the revenues from Trucks sales , and let c be the revenues from Cars sales . In 2004, c=0.2*t--->t=0.83*c . In 2005, t is same as in 2004. Statement 1). In 2005, the revenues from car sales were down less than 20 % from 2004. In 2005, new revenues from car sales= c-(<0.2*c) = >0.8*c . so it may or may not be less than 0.83*c. Hence Insufficient . Statement 2) In 2005, the revenues from car sales were down more than 18 % from 2004. In 2005 , new revenues from care sales= c-(>0.18*c) = <0.82*c. it is always less than 0.83*c . Hence Sufficient . Ans B

Sash143 · Answer

2004 ---> C = 1.2 T
2005 ---> T is same and Is C still greater than T? Yes/No

1) C was down less than 20%.
Say C IS down by 20%

In 2004 ---> Suppose T = 100 then C will be 120.
In 2005 ---> C is down by 20% so C = 96 and less than 20% will make C>96.
We know T = 100 (remains unchanged)
So if C=97 and T=100....its NO (C is not greater than T)
if C=101 and T=100.....its YES (C is greater than T)
INSUFF

2) C is down more than 18%.
Again say C IS down by 20%.

From above w.k.t C=96 when its down by 20% (which is clearly more than 18%) and if continues to be more down then C<96.....Always NO
Hence SUFF

Option B :-D

bumpbot · Answer

Automated notice from GMAT Club BumpBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

A certain company that sells only cars and trucks reported that in 200

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 Data Sufficiency (DS) Questions

A certain company that sells only cars and trucks reported that in 200

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