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24 Jan 2024, 03:33
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
81% (01:29) correct
19%
(01:24)
wrong
based on 445
sessions
History
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Time
Result
Not Attempted Yet
A monthly magazine receives revenue from exactly 3 sources: advertising, newsstand sales, and subscriptions. By what percent must subscription revenues rise in order to offset recent decreases in advertising revenue and newsstand sales?
(1) Advertising revenue decreased by 25% and newsstand sales decreased by 40%.
(2) Before the recent decreases, the total revenue from advertising and newsstand sales was $35,500 per month.
2024-01-24_14-32-05.png [ 65.91 KiB | Viewed 6633 times ]
(1) Advertising revenue decreased by 25% and newsstand sales decreased by 40%.
(2) Before the recent decreases, the total revenue from advertising and newsstand sales was $35,500 per month.
Attachment:
2024-01-24_14-32-05.png [ 65.91 KiB | Viewed 6633 times ]
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26 Jan 2024, 19:34
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guddo
(1) Advertising revenue decreased by 25% and newsstand sales decreased by 40%
Lot of unknowns. The decrease amt will vary depending upon the actual revenue that was being earned by Advertisement and newsstand.Additionally the increase in subscriptions revenue in order to offset the decrease will vary according to the present subscription revenue.
INSUFF.
(2) Before the recent decreases, the total revenue from advertising and newsstand sales was $35,500 per month.
Clearly INSUFF.
1+2
Initially A +N = \(35,500\)
After decrease we are getting \(.75\)A + \(.6\)N
However this is not sufficient to determine total decrease and hence we also cannot find increase. Also we do not know revenue from subscriptions.
Ans E
INSUFF.
Hope it helped.
26 Jan 2024, 20:26
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A monthly magazine receives revenue from exactly 3 sources: advertising, newsstand sales, and subscriptions. By what percent must subscription revenues rise in order to offset recent decreases in advertising revenue and newsstand sales?
We know from the passage that there are exactly 3 sources of advertising. Now, to determine by what percent subscription revenues must rise in order to offset recent decreases in advertising revenue and newsstand sales, we need information on both how much advertising revenue and newsstand sales decreased and the proportion of revenue each source provides. If we don't have both, there's no way to determine how much subscription revenues have to rise because we won't know how much of a decline the increase has to offset or what the relative effect of a given increase in subscription revenues is.
(1) Advertising revenue decreased by 25% and newsstand sales decreased by 40%.
This information gets us only part way to the answer.
It tells us the size of the decreases that must be offset by an increase in subscription revenues.
At the same time, since we don't have information on the proportions of revenue that come from the 3 sources, we don't know how much subscription revenues have to increase to offset these decreases.
For example, if subscription revenues represent 90 percent of revenue, then a small percentage increase in subscription revenues, less than 5 percent, will offset the decreases in advertising revenue and newsstand sales.
On the other hand, if subscription revenues represent 20 percent of revenue, then a huge percentage increase in subscription revenues, such as 120 percent, will be necessary to offset the decreases in advertising revenue and newsstand sales.
Insufficient.
(2) Before the recent decreases, the total revenue from advertising and newsstand sales was $35,500 per month.
Since this choice provides neither information on the sizes of the decreases that must be offset or the proportion of revenue from each source, it's clearly insufficient.
Insufficient.
Statements (1) and (2) combined
With the statements combined, we still don't have information on the proportions of revenue from the 3 sources. So, even though we have the percentage decreases from Statement (1), we still don't have sufficient information to determine how much subscription revenues have to rise to offset the decreases.
Insufficient.
Correct answer: (E)
We know from the passage that there are exactly 3 sources of advertising. Now, to determine by what percent subscription revenues must rise in order to offset recent decreases in advertising revenue and newsstand sales, we need information on both how much advertising revenue and newsstand sales decreased and the proportion of revenue each source provides. If we don't have both, there's no way to determine how much subscription revenues have to rise because we won't know how much of a decline the increase has to offset or what the relative effect of a given increase in subscription revenues is.
(1) Advertising revenue decreased by 25% and newsstand sales decreased by 40%.
This information gets us only part way to the answer.
It tells us the size of the decreases that must be offset by an increase in subscription revenues.
At the same time, since we don't have information on the proportions of revenue that come from the 3 sources, we don't know how much subscription revenues have to increase to offset these decreases.
For example, if subscription revenues represent 90 percent of revenue, then a small percentage increase in subscription revenues, less than 5 percent, will offset the decreases in advertising revenue and newsstand sales.
On the other hand, if subscription revenues represent 20 percent of revenue, then a huge percentage increase in subscription revenues, such as 120 percent, will be necessary to offset the decreases in advertising revenue and newsstand sales.
Insufficient.
(2) Before the recent decreases, the total revenue from advertising and newsstand sales was $35,500 per month.
Since this choice provides neither information on the sizes of the decreases that must be offset or the proportion of revenue from each source, it's clearly insufficient.
Insufficient.
Statements (1) and (2) combined
With the statements combined, we still don't have information on the proportions of revenue from the 3 sources. So, even though we have the percentage decreases from Statement (1), we still don't have sufficient information to determine how much subscription revenues have to rise to offset the decreases.
Insufficient.
Correct answer: (E)
