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ICsharp
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.

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
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ICsharp
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.
.

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
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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
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I’m a little confused by the wording of the question. It says that the “revenues from tram truck sales” remained unchanged. Does this mean the total revenue from all truck sales remained unchanged, or is it referring to a particular type/model of truck?
If there are multiple types of trucks, the revenue from the other truck categories could increase or decrease, which would affect the total truck revenue. I think the question should explicitly say “total revenues from all truck sales remained unchanged” if that is the intended meaning.

Bunuel
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?

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.
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Hi apoo151997,

Good instinct to slow down on wording, but here the phrase is simpler than it looks.

Notice how the problem opens: the company sells only cars and trucks. That single sentence sets up exactly two revenue streams for the whole company - one from all cars, one from all trucks. There are no sub-categories, models, or types anywhere in the stimulus. So "trucks" is one lumped bucket, not a particular model.

That's why Bunuel could write the setup as just two quantities:

- {revenues from truck sales} = x
- {revenues from car sales} = 1.2x

There's no third or fourth variable for "other truck types," because the problem never introduces one. When it says truck revenue "kept unchanged," it means that whole bucket stayed at x.

The key reading habit: in DS, you work only with the categories the problem actually names. If the test wanted you to split trucks into sub-types, it would have to give you those pieces and their revenues - otherwise there's nothing to compute with. Inventing hidden subcategories would leave the problem unsolvable, which is a signal you've added information that isn't there.

You're right that "total revenues from all truck sales" would be more explicit. But since the company's only two products are cars and trucks, "revenues from truck sales" can only mean the total from trucks - there's nothing else it could refer to.

So read it as: total truck revenue = x in 2004, still x in 2005. Then the question is just whether 2005 car revenue is above or below that x, which is exactly what statements (1) and (2) let you test. Once the wording is settled this way, the rest of the thread's work follows cleanly.

Answer: B

apoo151997
I’m a little confused by the wording of the question. It says that the “revenues from tram truck sales” remained unchanged. Does this mean the total revenue from all truck sales remained unchanged, or is it referring to a particular type/model of truck?
If there are multiple types of trucks, the revenue from the other truck categories could increase or decrease, which would affect the total truck revenue. I think the question should explicitly say “total revenues from all truck sales remained unchanged” if that is the intended meaning.


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