The revenue of a company is directly proportional to the number of cus

Question

The revenue of a company is directly proportional to the number of customers it serves, which in turn is directly proportional to the marketing spend of the company. What is the revenue of the company if it spends one million dollars in marketing?

(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars
(2) The ratio of revenue of the company to the number of customers it serves is 4:1

NitishJain · Answer

IMO  A

Given Revenue  directly proportional  to # of customers
# of customers  # of customers  Marketing spend

to find: Revenue when one million dollars spend on marketing

Stmt 1: $250,000 in marketing. -- 10,000,000 revenue

$1,000,000 in marketing -----40,000,000 Revenue

SUFFICIENT

Stmt 2: revenue of the company : number of customers = 4:1

INSUFFICIENT

yashikaaggarwal · Answer

Isn't there a constant in between directly proportional relationship?
Like if y is direct proportional to x
Y = XK

Posted from my mobile device

bM22 · Answer

Given: Revenue =k(No. of Customers)
No. of Customers = x(Marketing spent)

=> Revenue = k * x * No. of Customers *Marketing spent
Where kx is a constant

Statement 1: If the company spends $250,000 in marketing, it earns a revenue of ten million dollars.
=> 10 $ Million = kx ( No. of Customers * 250000$)
=> If All other constants stay same, we can calculate the revenue when the marketing spend is: 10 $ Million.

Sufficient.

Statement 2: The ratio of revenue of the company to the number of customers it serves is 4:1
=> Revenue = 1/4(No. of Customers)
=> But we dont have the value of x.
 So Insufficient.

Answer A.

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The revenue of a company is directly proportional to the number of cus

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The revenue of a company is directly proportional to the number of cus

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