This is a great DS question that looks deceptively simple — let me break it down.
Key concept being tested: Revenue = Price × Quantity, combined with Data Sufficiency logic (what do you actually need to determine a ratio?)
Setup:
Let snack price = S. Then dinner price = S(1 + p/100). Call this ratio r = dinner price / snack price, where r > 1.
Last month's revenue split: dinner = 3/4, snack = 1/4. This means:
(dinner qty × dinner price) / (snack qty × snack price) = 3/1
Evaluating Statement (1): Dinner qty ↑4%, snack qty ↑8%.
This month:
- New dinner revenue = 1.04 × (dinner qty) × (dinner price)
- New snack revenue = 1.08 × (snack qty) × (snack price)
New dinner fraction = (1.04 × old dinner revenue) / (1.04 × old dinner rev + 1.08 × old snack rev)
= (1.04 × 3) / (1.04 × 3 + 1.08 × 1)
= 3.12 / (3.12 + 1.08) = 3.12 / 4.20 = 26/35
Statement 1 IS sufficient on its own because the revenue ratio from last month (3:1) is all we need, and the quantity growth rates give us the new ratio directly. We never needed to know the actual price ratio p.
Evaluating Statement (2): 3 snack portions = 2 dinner portions → price ratio D/S = 3/2.
This tells us p = 50%, but gives us nothing about how quantities changed this month. Insufficient.
Common trap: Most students dismiss Statement 1 quickly, thinking "we need the price ratio to figure out revenue." Wrong — because we already know the revenue split from last month (3:1), the quantity growth rates are enough to compute the new revenue split directly. You never needed p at all.
Answer: A (Statement 1 alone is sufficient.)
Takeaway: In DS revenue problems, if you already have last period's revenue breakdown, percentage changes in quantity alone can be enough — you don't always need to know individual prices.