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Difficulty:
55%
(hard)
Question Stats:
59% (01:42) correct
41%
(01:34)
wrong
based on 74
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Find the percent change in the revenue generated by a salesman.
(1) When the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%
(2) The number of units of the product sold before the change in price was 990
(1) When the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%
(2) The number of units of the product sold before the change in price was 990
23 Jan 2026, 22:15
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Find the percent change in the revenue generated by a salesman.
(1) When the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%
(2) The number of units of the product sold before the change in price was 990
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: When the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%
The key concept to know here is that: Revenue = Selling Price * Sales
Let's assume the initial revenue to be 'R' = Selling Price * Sales
Now, when the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%:
We know: 9.09% = 1/11 and 11.11% = 1/9
New Revenue = (10/11)Selling Price * (10/9)Sales = 100/99 Revenue
Thus, the percent change in the revenue = {(100/99 Revenue - Revenue)/Revenue} * 100 = 1.01%
Hence, we are able to obtain the answer using Statement 1 alone.
Now, let's take a look at Statement 2 closely:
Statement 2: The number of units of the product sold before the change in price was 990
Notice, this does not tell us anything about the price of each unit or any other useful information using which we can calculate the percent change in the revenue.
Hence, the correct answer is Option A - Statement (1) alone is sufficient, but Statement (2) alone is not sufficient.
Hope this helps!
(1) When the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%
(2) The number of units of the product sold before the change in price was 990
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: When the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%
The key concept to know here is that: Revenue = Selling Price * Sales
Let's assume the initial revenue to be 'R' = Selling Price * Sales
Now, when the salesman reduces the selling price of the product by 9.09%, the sales increase by 11.11%:
We know: 9.09% = 1/11 and 11.11% = 1/9
New Revenue = (10/11)Selling Price * (10/9)Sales = 100/99 Revenue
Thus, the percent change in the revenue = {(100/99 Revenue - Revenue)/Revenue} * 100 = 1.01%
Hence, we are able to obtain the answer using Statement 1 alone.
Now, let's take a look at Statement 2 closely:
Statement 2: The number of units of the product sold before the change in price was 990
Notice, this does not tell us anything about the price of each unit or any other useful information using which we can calculate the percent change in the revenue.
Hence, the correct answer is Option A - Statement (1) alone is sufficient, but Statement (2) alone is not sufficient.
Hope this helps!
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